Inox India IPO Opens Tomorrow: Check Date, GMP Today, Listing Price, And Other Details Here

The initial public offering (IPO) of Inox India will open for subscription on Thursday (December 14). The company has fixed the price band of Inox India IPO at Rs 627-660 per share. The 5-day Rs 1,459.32 Crore IPO of domestic cryogenic storage tank maker InoxCVA will conclude on December 18.

The IPO shares are likely to be allotted to eligible IPO participants on December 19, while the Inox shares are expected to be listed on stock exchanges on December 21. Bidding for the anchor book will take place today i..e December 13. Recently, the company's promoter and director Siddharth Jain told PTI that at the upper end of the price band, the Inox CVA is valued at Rs 5,990 crore.

The public issue is entirely an offer for sale (OFS) of 2.21 crore shares with a face value of Rs 2 each. Through the OFS, the company will be selling up to 22,110,955 equity shares. The selling promoter shareholders include Siddharth Jain who will be pairing up to 10,437,355 shares, up to 5,000,000 shares each by the founder and father of Siddharth, Pavan Kumar Jain, and Nayantara Jain.

Non-promoter shareholders who will offload shares include Ishita Jain, Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta. Since there is no fresh issue component in the IPO, the Vadodara-based company will not receive any proceeds and the selling shareholders will get all the funds.

Half of the issue i..e 50% of the issue is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs).

InoxCVA IPO GMP Today

According to market observers, unlisted shares of Inox India were last trading at a premium of Rs 260-270 apiece over the upper end of the price band at Rs 660 apiece in the grey market indicating that the company's shares will likely be listed almost 40% higher compared to the price band.

Inox India IPO Lot Size:

The INOX India IPO lot size is 22 shares and in multiples of 22 equity shares thereafter. The minimum amount of investment required by retail investors is Rs 14,520.

Financials

Inox India has reported a 17% year-on-year (YoY) growth in net profit at Rs 152.7 crore for the year ended March FY23. During this period, the company's revenue rose by 23.4% to Rs 966 crore.
In the six-month period ended September FY24, the company's net profit grew 24% to Rs 103 crore.

Analysis:

Risks:

• The firm's business is dependent and will continue to depend on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process such as the breakdown or failure of equipment, industrial accidents, severe weather conditions, and natural disasters.
• The company is dependent on and derives a substantial portion of its revenue from a limited number of customers. Cancellation by customers or delay or reduction in their orders could have a material adverse effect on our business, results of operations, and financial condition.
• The company relies on a number of third-party suppliers for our key components, materials, and stock-in-trade as well as customer support services including product repairs and returns. Any shortfall in the supply of our components and raw materials or an increase in our component or raw material costs, or other input costs, may adversely affect the pricing and supply of our products and have an adverse effect on Inox's business, results of operations, and financial condition.
• The Company does not own the name "INOX" and its inability to comply with the terms and conditions of the Name License Agreement and subsequent termination thereof may adversely impact its business, results of operations, and financial condition.
• A slowdown in our exports due to tariffs trade barriers and international sanctions could adversely affect the firm's business, results of operations, and financial condition.