INOXCVA to Launch IPO in December After Regulatory Approval from SEBI

Mumbai, December 6, 2023 – Inox India Ltd, the manufacturer of Cryogenic tanks under the brand INOXCVA, is set to launch its initial public offering (IPO) in December after receiving the regulatory green light from the Securities and Exchange Board of India (SEBI), the company’s top management announced on December 5.

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The company’s IPO will be conducted through an offer-for-sale (OFS) of up to 22.11 million shares, with the promoters planning to sell their shares. This move comes after the company filed draft papers for an IPO back in August.

INOXCVA’s management has clarified that their primary objective behind the IPO is not necessarily to raise capital but to enhance the company’s visibility in the market.

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The exact amount of funds to be raised by the IPO has not been decided yet, as the banks are currently working on determining this figure. ICICI Securities and Axis Capital have been appointed as the book running lead managers for the IPO. Additionally, the promoters have not yet finalized their plans for the utilization of the funds raised.

INOXCVA, boasting over three decades of experience, offers comprehensive solutions encompassing the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions. Their product portfolio includes standard cryogenic tanks and equipment, beverage kegs, as well as large turnkey projects serving industries such as industrial gases, liquefied natural gas (LNG), and green hydrogen, among others.

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According to the Draft Red Herring Prospectus (DRHP), there are currently no listed companies in India engaged in a business similar to that of INOXCVA.

The company operates from three facilities located in Kalol (Gujarat), Kandla SEZ (Gujarat), and Silvassa (Dadra and Nagar Haveli). As of the fiscal year 2022-23, INOXCVA’s installed capacity included 3,100 equivalent tank units, equivalent to 10,000-liter cryogenic storage tanks and 2.4 million disposable cylinders. As of March 31st, the company’s order book was valued at Rs 1,003.15 crore.

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In the fiscal year 2022-23, INOXCVA achieved a 17 percent increase in net profit, reaching Rs 152.71 crore, compared to Rs 130.5 crore in 2021-22. Simultaneously, the company’s revenues demonstrated a robust growth of 23.4 percent, reaching Rs 965.9 crore in 2022-23, up from Rs 782.71 crore in 2021-22.

However, there was a slight decline in EBITDA margin from 23.47 percent in 2021-22 to 22.62% in 2022-23. The total debt as of March 31st stood at Rs 8.99 crore, marking a significant decrease from Rs 54.54 crore in the previous year.

In terms of future growth plans, Director Parag Kulkarni revealed that the management envisions INOXCVA becoming an international multinational corporation (MNC) within the next four to five years, with its headquarters in India and a global presence. The company also aims to explore joint ventures with other firms to delve into new technologies in the medical field.

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Kulkarni further mentioned that INOXCVA has already made significant strides in working with superconducting magnets, particularly in the context of MRI technology. The company intends to collaborate with global entities and scale this technology to a global level. Additionally, INOXCVA is considering venturing into other emerging technologies such as quantum computers and fusion research projects.

The company has earmarked an investment of Rs 200 crores over the next two years for the development of its fourth plant, as confirmed by the Chief Executive Officer. This investment signifies the company’s commitment to expanding its capabilities and contributing to technological advancements in the industry.

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