The Rs 1,459.32 crore-initial public offering (IPO) of Inox India saw a strong response from the investors during the third and final day of the bidding process, particularly by retail and non-institutional investors (NIIs). The issue was subscribed 2.79 times by the end of day one and ended the second day with 7.07 times subscription.
The Gujarat-based Inox India is selling its shares in the price band of Rs 627-660 apiece with a lot size of 22 shares and its multiples thereafter. The three-day bidding for the IPO will close for bidding on Monday, December 18. The issue is entirely an offer-for-sale of up to 22,110,955 equity shares.
According to the data, the investors made bids for 21,15,32,222 equity shares, or 13.67 times, compared to the 1,54,77,670 equity shares offered for the subscription by 12.30 pm on Monday, December 18. The three-day bidding for the issue concludes today.

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The allocation for retail investors was subscribed 11.18 times, while the portion reserved for non-institutional investors saw a subscription of 31.10 times. However, the quota set aside for qualified institutional bidders (QIBs) attracted bids for 4.94 times as of the same time.
Founded in 1976, Inox India is a leading provider in the supply of cryogenic equipment, with a primary focus on tanks. The company delivers comprehensive solutions for equipment and systems designed to operate in cryogenic conditions, encompassing services such as design, engineering, manufacturing, and installation.
Last heard, Inox India was commanding a grey market premium of Rs 535-555 per share, signaling an upside of 82-85 per cent compared to the upper end of the price band. However, the premium in the unofficial market was about Rs 445-450 during the first day of the bidding.
Inox is amongst the top 10 companies globally and the largest in India in the business of manufacturing complex cryogenic solutions which are highly critical for the user industries. This is reflected in the company’s superior EBITDA margins at over 21 per cent, much higher than average of listed capital goods players, said Nirmal Bang Securities.
Combined with strong asset turns of 1.4-1.8 times historically, Inox has consistently delivered ROCE of over 30 per cent in recent years. Increasing importance of green fuels like liquid hydrogen and preference for LNG over diesel is leading to robust topline growth for Inox. We believe it leaves some scope for listing gains, added with a ‘subscribe’ rating for the issue.
INOX India raised Rs 437.8 crore from several anchor investors as it finalised allocation of 66,33,285 equity shares at a price of Rs 660 apiece. The IPO allocates 50 per cent of the offer to qualified institutional bidders (QIBs), with non-institutional investors receiving 15 per cent, and the remaining 35 per cent allocated to retail investors.
Inox CVA emerged as the foremost supplier of cryogenic equipment in India by revenue. The company has no listed peers and is looking to benefit from the growth in the global and domestic cryogenic equipment market. The demand for cryogenic equipment for LNG storage, distribution, and handling is expected to grow at an 8.4 per cent CAGR from CY23 to CY28, said SMIFS.
“We recommend to subscribe to the issue keeping in mind the dominant positioning of the company, possibility of improving capacity utilisation to bolster topline and bottomline growth coupled with additional growt lever provided from the advent and or acceptance of hydrogen as on the preferred fuel of the future, which should open another large avenue of growth,” it added.
ICICI Securities and Axis Capital are the book running lead managers for the InoxCVA IPO, with Kfin Technologies serving as the registrar for the issue. Shares of the company are scheduled to be listed on both BSE and NSE on Thursday, December 21
 

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