Inox India Limited IPO

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  1. Industry Leadership and Experience:
    • The company is a leading cryogenic tank manufacturer globally, based on revenues in 2021.
    • Boasts over 30 years of experience in design, engineering, manufacturing, and installation of cryogenic equipment and systems.
  2. Product and Market Focus:
    • Provides a range of cryogenic solutions, including standard tanks, bespoke technology, equipment, and turnkey projects.
    • Serves diverse industries such as industrial gases, LNG, green hydrogen, energy, steel, medical, healthcare, chemicals, fertilizers, aviation, aerospace, pharmaceuticals, and construction.
    • Active in global scientific research projects.
  3. Global Market Growth Opportunities:
    • Well-positioned to benefit from the increasing demand for cleaner fuels like LNG and hydrogen, driven by the global focus on reducing carbon emissions.
    • Offers in-house technology and a comprehensive LNG product range covering the entire value chain.
  4. Innovation and Hydrogen Products:
    • Actively involved in developing products for the hydrogen sector, including storage, transportation, and distribution.
    • Pioneered the manufacture of a trailer-mounted hydrogen transport tank in collaboration with the Indian Space Research Organisation (ISRO).
    • Delivered liquid hydrogen storage tanks for projects in South Korea.
  5. Business Divisions:
    • Industrial Gas Division: Offers cryogenic tanks and systems for industrial gases, providing after-sales services.
    • LNG Division: Designs, manufactures, and installs LNG solutions, including static storage tanks, transport trailers, LNG satellite stations, marine fuel tanks, and vehicle fuel tanks.
    • Cryo Scientific Division: Specializes in cryogenic equipment for technology-intensive applications and turnkey solutions for scientific and industrial research.
  6. Customer Base:
    • Diversified customer base across industry sectors and geographies.
    • Served over 1,200 domestic customers and 228 international customers in Fiscal 2023, Fiscal 2022, and Fiscal 2021.
    • Major customers include well-known entities in the industrial gas, LNG, and scientific research sectors.
  7. Customer Retention:
    • The company has a history of high customer retention, indicating satisfaction and ongoing relationships with clients.

Objects of the Inox India Limited IPO:

The objectives of the Offer are to i. Carry out the Offer for Sale of up to 22,110,955 Equity Shares by the Selling Shareholders; and ii. Achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, the Company expects that the proposed listing of its Equity Shares will enhance the visibility and brand image as well as provide a public market for the Equity Shares in India. The Selling Shareholders will be entitled to the entire Offer proceeds after deducting the Offer expenses and relevant taxes.
DRHP of Inox India Limited IPO
RHP of Inox India Limited IPO

Inox India Limited IPO Details:

Open Date: Dec 14 2023
Close Date: Dec 18 2023
Total Shares: 22,110,955
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 1,459.32 Cr.
Lot Size: 22 Shares
Issue Price: ₹ 627 - 660 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 21 2023

Promoters And Management:

Pavan Kumar Jain is the Chairman and Non-Executive Director of the Company. He holds a bachelor’s degree in chemical engineering from the Indian Institute of Technology, Delhi. He has been associated with the Company since April 16, 1979. He has approximately 30 years of experience in the cryogenic engineering and high vacuum technology industry and has helped the Company to become one of the leading cryogenic tank manufacturers in the world by revenues in 2021 (Source: CRISIL Report, December 2022). Under his leadership, the Company has successfully diversified into various aspects of design, engineering, manufacture and installation of cryogenic equipment. He oversees various segments of the Company such as industrial gases, cryogenic engineering and entertainment. Siddharth Jain is the Non-Executive Director (Non-Independent) of the Company. He holds a bachelor’s degree of science in engineering from the University of Michigan and has obtained certification in master of business administration from the faculty of INSEAD. He has been associated with the Company since March 17, 2004. He has approximately 18 years of experience in the cryogenic engineering and high vacuum technology industry. He oversees the groups’ strategic planning, business development and together with responsible for the industrial gases, entertainment and cryogenics equipment manufacturing businesses. Parag Kulkarni is the Executive Director of the Company. He holds a bachelor’s degree in mechanical engineering from the College of Engineering, Goa and a masters’ degree in management studies from Jamnalal Bajaj Institute of Management Studies, Mumbai. He has been associated with the Company since July 16, 1992. He is an executive member of Indian Cryogenics Council. He has approximately 30 years of experience in the cryogenic engineering and high vacuum technology industry. He oversees the strategic growth opportunities, engineering developments, business expansion and new energy strategies and related functions of the Company and together with the senior management is responsible for implementation of strategy in respect of such functions.

Financials of Inox India Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 90.76 181.52 181.52
Reserves 3,624 4,841 5,313
Borrowings 604 434 0
Trade Payables 174 401 648
Other Liabilities 2,379 3,110 5,341
Total Liabilities 3,157 3,945 5,989
Net Block 1,013 1,332 1,636
Capital Work in Progress 24 19 2
Investments 1 2 2
Other Assets 541 83 108
Total NC Assets 1,580 1,436 1,749
Receivables 1,127 781 1,429
Inventory 1,458 3,225 4,128
Cash & Bank 2,019 88 617
Other Assets 606 3,334 3,456
Face value 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 5,938 7,827 9,659
Raw Material Cost 2,391 4,292 4,895
Change in Inventory 86 -915 -567
Employee Cost 605 735 790
Other Expenses 1,511 2,039 2,498
Other Income 152 210 183
Depreciation 118 121 139
EBITDA 1,497 1,886 2,227
EBITDA Margin 25.21% 24.10% 23.05%
Interest 69 23 37
Profit before tax 1,311 1,742 2,050
Tax 350 437 523
Net profit 961 1,305 1,527
NPM (%) 15.78% 16.24% 15.52%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 1,377 1,716 2,048
Receivable 344 352 -631
Inventory 154 -1,767 -903
Payable 17 227 311
Loans And Advances 107 -46 -220
Other WC Items 583 725 1,713
Working Capital Changes 1,205 -509 270
Direct Taxes -275 -237 -534
Net Cash Inflow from Operating Activity 2,307 970 1,784
Cash from Investing Activity
Fixed assets purchased -63 -439 -489
Fixed assets sold 4 1 23
Investments purchased -249 -4,515 -3,388
Investment sold 801 1,710 4,126
Other investing items -1,975 2,498 -158
Net cash inflow from investing activities -1,482 -746 113
Cash from Financing Activity
Repayment of borrowings -846 -170 -434
Intrest paid fin -69 -15 -31
Dividends paid -18 -45 -1,044
Other financing items -25 -31 -28
Net Cash Flow -169 -11 125

Comparison With Peers:

Notes: - There are no listed companies in India that are engaged in a business similar to this Company.

Recommendation on Inox India Limited IPO:

To be updated shortly

Lead Manager of Inox India Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited

Registrar of Inox India Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Inox India Limited 9 th Floor, K P Platina Racecourse Vadodara - 390 007 Phone: +91 265 6160100 Email: secretarial.in@inoxcva.com Website: https://inoxcva.com/

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