Bumper Listing: INOX India Makes Stellar Debut On Stock Exchanges At 44% Premium From IPO Price

After the success of INOX India's initial public offering (IPO), the company's shares made a remarkable debut on the stock exchanges today. INOX India's share price on the National Stock Exchange (NSE) opened at Rs 949.65 per share, a staggering 43.88% higher than the issue price of Rs 660 per share and at Rs 933.15 per share on the Bombay Stock Exchange (BSE).

The INOX India IPO, with a price band set between Rs 627 and Rs 660 per equity share, garnered significant attention from investors. The subscription period, which spanned from Thursday, December 14, to Monday, December 18, saw robust demand, resulting in a subscription rate of 61.28 times. Anchor investors showed strong confidence in the company, contributing Rs 437.8 crore on Friday, December 15.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., shared insights into Inox India's market debut, emphasizing its standing as a key player in the cryogenic equipment sector. "Inox India is the leading cryogenic equipment supplier in India, positioned to benefit from escalating demand in crucial sectors such as healthcare, space exploration, and food processing," Nyati stated. The company's diversified product portfolio and robust order book further contribute to its strong market position.

Nyati expressed confidence in Inox India's long-term prospects, pointing to its solid fundamentals and the expanding market it serves. "With strong fundamentals and a growing market, the company has the potential for long-term value creation; thus, we recommend holding it with a long-term view," she added. Additionally, Nyati suggested that investors might consider fresh buying at lower levels, signalling optimism about the company's future performance.

The IPO allocated not more than 50% of the shares for qualified institutional buyers (QIBs), a minimum of 15% for non-institutional institutional investors (NIIs), and at least 35% for retail investors. The lot size for the INOX India IPO was set at 22 equity shares, with multiples of 22 equity shares thereafter.

The company's plan to raise funds through the IPO included an offer for sale of up to 22,110,955 equity shares, featuring a face value of Rs 2 per share. Prominent selling shareholders, as outlined in the red herring prospectus (RHP), include Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, Ishita Jain, and Manju Jain.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., expressed optimism about INOX India's prospects, citing the strong subscription and a grey market premium of +440. Nyati noted, "With strong fundamentals and a growing market, Inox India has potential for long-term value creation; thus, we recommend holding it with a long-term view."

The grey market premium (GMP) of Rs 440 premium is similar to the previous session. It indicates that INOX India shares are trading at a premium of Rs 440 per share in the grey market. This suggests investors' readiness to pay more than the issue price, reinforcing positive sentiment.

Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd., echoed the sentiment, predicting a solid listing premium for INOX India. Tapse stated, "Despite valuations being fully priced into all near-term growth, a solid listing is justified on the back of the company's strategic position in the niche market with a global footprint and commitment to innovations, which is commanding a higher valuation multiple."

Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price of INOX India was indicated at Rs 1,100 per share-a remarkable 66.67% higher than the IPO price of Rs 660. This robust listing gain underscores the strong investor interest and confidence in the company.

Prashanth Tapse, Sr. VP of Research, Mehta Equities Ltd stated, "Given the positive secondary market environment and ample liquidity along with strong subscription demand, INOX India is expected to see a solid listing premium over and above 75% gain against the issue price of Rs 660 per share. Despite valuations being fully priced into all near-term growth, a solid listing is justified on the back of the company's strategic position in the niche market with a global footprint and commitment to innovations which is commanding higher valuation multiple."

"We recommend allotted short-term investors to book profits over and above 75% gain on the listing day while long-term investors can HOLD considering healthy long-term growth in leading supplier and exporter of cryogenic equipment and solutions. For those investors who failed to get allotments in the public offer can accumulate on every dip post listing for decent long-term returns," Tapse added further.

The positive reception of INOX India's IPO reflects the growing confidence in the company's future prospects. As the leading cryogenic equipment supplier in India, with a diversified product portfolio and a robust order book, INOX India seems poised for sustained growth in sectors like healthcare, space exploration, and food processing.