Stellar Listing: Inox India lists at a 44% premium at Rs. 950 per share on the NSE

Inox India Limited manufactures and supplies cryogenic equipment, which debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 933.15 per share, reflecting an impressive 41.39% premium compared to the final issue price of Rs 80 per share. Meanwhile, on the NSE, the stock debuted at Rs 949.65 per share, representing an impressive premium of around 44% over its final issue price.

At present, the stock is trading at Rs 917 per share on the BSE, having reached intraday highs and lows of Rs 978.90 and Rs 910, respectively. The current market capitalisation of the company stands at Rs 8,312 crore.

IPO Proceeds 

The IPO consists solely of an Offer for Sale, with all proceeds going directly to the selling shareholders.

Company profile:

Incorporated in 1976, Inox India Limited manufactures and supplies cryogenic equipment. The company’s business activities comprise three divisions and they are Industrial Gas: This division designs, manufactures, and installs cryogenic tanks and systems for the storage, transportation, and distribution of industrial gases, including green hydrogen and oxygen, LNG: This division develops, manufactures, supplies, and installs both standard and engineered equipment for LNG storage, distribution, and transportation. It also offers small-scale LNG infrastructure solutions for industrial, marine, and automotive applications, Cryo Scientific: This division offers equipment and turnkey solutions for scientific and industrial research in the field of cryogenic distribution, focusing on technology-intensive applications.

The product portfolio includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment, and solutions, as well as large-scale turnkey projects used in various industries such as industrial gases, liquefied natural gas, green hydrogen, energy, steel, medical and healthcare, chemicals and fertilisers, aviation and aerospace, pharmaceuticals, and construction.

Subscription details: 

On December 18, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 61.28 times. The public issue received remarkable interest, with the retail category being subscribed 15.30 times, the QIB category achieving a subscription rate of 147.80 times, and the NII category reaching a subscription rate of 53.20 times.

The company attracted Rs 437.80 crore from various anchor investors by allocating 66.33 lakh equity shares at Rs 660 per share. The complete lock-in period for these anchor investors ends on April 24, 2024.

The IPO price range was set between Rs 627 and Rs 660, with a face value of Rs 2 per share and a lot size of 22 shares. The total size of the company’s IPO was Rs 1459.32 crore, and the final share issue price was fixed at Rs 660 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have already gained an impressive 44% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.