Ahead of its IPO, Inox India Ltd (InoxCVA) is commanding a strong premium in the grey market. The company’s demand in the unofficial market has been high considering its niche business model, growth prospects and strong relation with ISRO amid India’s growing research in the space programming.
Last heard, InoxCVA was commanding a premium of Rs 260-270 apiece, suggesting a listing potential of about 40 per cent over the upper end of price band at Rs 660 apiece. The company’s premium in the black market has remained firm for the last two-days.
The initial public offering (IPO) of InoxCVA, the Inox Group entity, shall open for bidding on Thursday, December 14. The company is offering its shares in the fixed price band of Rs 627-660 apiece with a lot size of 22 equity shares and its multiples. The bidding for the offer will conclude on Monday, December 18.

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Inox India, which was incorporated in 1976, is a supplier of cryogenic equipment, majorly tanks. The company provides end-to-end solutions for equipment and systems operating in cryogenic conditions, including design, engineering, manufacturing and installation.
Explaining his business in an interaction with Business Today TV, Siddharth Jain, Non-Executive Director of InoxCVA said that the company is into business of specialized cryogenic cylinders, which keep the liquid below 100 degrees centigrade in liquid form. Such cylinders are used to store and keep cold liquids, involved in three segments Industrial gas, LNG and Cryo Scientific.
Jain is positive on growth potential in all three segments. He sees Hydrogen as the key driver for its growth in the industrial segment, from where the company derives 71 per cent of its revenue. The demand and urge for clean energy are likely to push demand for hydrogen higher, which will push the demand higher for the company in international markets.
LNG is a transitional fuel, which is being adopted at a phenomenal pace to replace fossil fuel, said Jain. “The amount spent in space research is growing at a rampant pace and we have been associated with ISRO for more than 20 years.” The company management aims to capture new clients in both domestic and international markets, he concluded.
The company is looking to raise Rs 1,459.32 crore via its initial IPO, which entirely consists of an offer-for-sale (OFS) of up to 22,110,955 equity shares by its promoters and other selling shareholders. The anchor book for the issue shall open on Wednesday, December 13 and shares of the company shall be listed on both BSE and NSE on Thursday, December 21.
The company has reserved 50 per cent of the offer for the qualified institutional bidders (QIBs), while non-institutional investors and retail investors of the issue shall get 15 per cent and 35 per cent of the issue, respectively. ICICI Securities and Axis Capital are the book running lead managers of the InoxCVA IPO, while Kfin Technologies has been appointed as the registrar.

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