Inox India IPO: Latest Subscriptions Status Here, GMP Hints Premium Listing

Inox India Limited, a cryogenic equipment maker and supplier, opened its Initial Public Offering (IPO) for subscription on December 14, aiming to raise a substantial Rs 1,459.32 crore through a 100% Offer for Sale (OFS). The IPO, which commenced yesterday, is set to continue accepting bids until Monday, December 18th, 2023. The shares of INOX India Limited are currently trading at a premium of Rs 330 in the grey market.

As of noon on the second day of the bidding process, the book build issue has garnered a robust subscription rate of 4.69 times, with the retail portion experiencing an even more significant interest at 5.75 times subscription. The Non-Institutional Investors (NII) segment has witnessed an 8.40 times subscription, reflecting confidence among investors.

The IPO, with a price band set between Rs 627 and Rs 660 per equity share, offers investors an opportunity to be part of Inox India Limited's growth story. The company's decision to go public comes at a time when the demand for cryogenic equipment is expected to surge globally, driven by a collective effort to reduce carbon footprint and promote cleaner sources of energy such as Liquified Natural Gas (LNG) and hydrogen.

Shares of the cryogenic equipment manufacturer will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Thursday, December 21st, 2023. With the recent mandate of the T+3 listing becoming effective from December 1st, 2023, share allocation is anticipated to take place on Tuesday, December 19th, 2023.

KFin Technologies Limited has been appointed as the official registrar for this IPO, adding credibility to the listing process. Investors are advised to apply for the INOX India IPO with a long-term perspective, according to Parth Shah, a Research Analyst at StoxBox. Shah emphasized the favourable positioning of Inox India Ltd, attributing its potential success to factors such as a leadership position in cryogenic equipment in India, a robust product portfolio, and a strong order book featuring marquee clients across diverse sectors.

Shah further highlighted the company's strategic focus on exports, solid financial performance in terms of both top and bottom lines, and a commitment to reducing borrowings. With a Return on Equity (RoE) and Return on Capital Employed (RoCE) exceeding 25%, Inox India Limited stands out as a financially sound and promising investment option.

In his recommendation, Shah underscored the industry's potential and encouraged investors to subscribe to the IPO, citing the growing global emphasis on sustainable and clean energy sources. He believes that Inox India is well-positioned to capitalize on the increasing demand for cryogenic equipment in the long run.

As the subscription period continues, market observers are keeping an eye on the INOX India IPO, anticipating further developments and a successful listing.