{"id":19955,"date":"2023-12-13T11:39:40","date_gmt":"2023-12-13T06:09:40","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=19955"},"modified":"2023-12-13T12:12:30","modified_gmt":"2023-12-13T06:42:30","slug":"inox-india-ipo-review","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/inox-india-ipo-review\/","title":{"rendered":"Inox India IPO Review: Expensive player in niche industry"},"content":{"rendered":"
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Inox India Limited IPO Details: <\/strong><\/h2>\n

Estimated Pre-listing Market Cap:<\/strong>~Rs. 5,940 Cr<\/p>\n

IPO Date:<\/strong> 14th December to 18th December<\/p>\n

Total shares:<\/strong> ~9.07 Cr<\/p>\n

Price band:<\/strong>  Rs. 627 – Rs. 660 per share<\/p>\n

IPO Issue Size:<\/strong> ~ Rs. 1,459 Cr<\/p>\n

Lot Size:<\/strong> 22 shares and multiples thereof<\/p>\n

Purpose of Issue:<\/strong> Offer for Sale<\/p>\n

Recommendation:<\/strong> Avoid, Expensive player in niche industry<\/strong><\/p>\n<\/div>\n

About Inox India Limited:<\/strong><\/h2>\n

INOX India Limited<\/a> was established in 1976 and has more than 30 years of experience in the development, design, manufacture and installation of equipment and systems for cryogenic conditions. The company’s offerings include standard cryogenic tanks and equipment, beverage drums, customised technologies, equipment and solutions, and large-scale turnkey projects used in various industries such as industrial gases, liquefied natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aerospace, pharmaceuticals, and construction. In addition, the company manufactures a range of cryogenic systems that are used in scientific research projects worldwide.<\/strong><\/p>\n

Industry <\/strong><\/h3>\n

The Indian cryogenic equipment market size was estimated to be USD 340 bn in CY21. The demand for cryogenic equipment in India grew at a steady CAGR of 6.5 % between CY16-19. The lockdown and travel restrictions resulting from the COVID-19 pandemic saw the global demand growth for cryogenic equipment stall for two years between CY19-21. Going forward, demand for cryogenic equipment in India is expected to grow at a CAGR of 7.1% between CY22-27. The growth is expected to be driven by an increase in industrial output, an increase in investments in the electronics and space sectors and a shift towards cleaner fuel sources such as LNG and hydrogen in the industrial and transport sector.<\/p>\n

\"domestic<\/a><\/p>\n

Source: Company Data, Moneyworks4me Research)<\/p>\n

Business Model<\/strong><\/h2>\n

Inox India designs, manufactures and installs cryogenic storage, distribution and transportation equipment and systems (both standard and engineered for customers). Their equipment and systems are used in industries such as energy, industrial gases, LNG and LCNG steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and construction.<\/p>\n

The company\u2019s business is comprised of 3 divisions: Industrial Gas, LNG and Cryo Scientific<\/em><\/p>\n

Industrial Gas<\/u><\/em><\/h3>\n

In the Industrial Gas Division, the company design, manufacture, supply and install storage tanks, transport tanks, microbulk units, vaporizers, cryo bio tanks, refrigerant cylinders, and beverage kegs. Their solutions focus on cryogenic tanks and systems for liquid industrial gases including liquid hydrogen, liquid nitrogen, liquid oxygen, liquid argon, liquid carbon dioxide, LNG, and ethylene oxide.<\/p>\n

LNG Division<\/u><\/em><\/h3>\n

LNG division manufactures, supplies and installs standard and engineered equipment for LNG storage, distribution, and transportation as well as small-scale LNG infrastructure solutions suitable for industrial, marine, and automotive applications. LNG plants are typically located near natural gas sources, and LNG is carried in large bulk carriers worldwide to receiving terminals located in different countries. Their product range starts from taking the cryogenic LNG at the receiving terminal for small-scale and mobile users to transportation and then distribution to the end-user.<\/p>\n

Cryo Scientific Division<\/u><\/em><\/h3>\n

The company\u2019s Cryo Scientific Division supplies specialized engineered equipment to support scientific applications. Their Cryo Scientific Division offers product development initiatives, applications, and turnkey solutions for scientific and industrial research. Their activities are focused on satellite and launch facilities, cryogenic propulsion systems and research and fusion and superconductivity.<\/p>\n

\"revenue<\/a><\/p>\n

(Source: Company Data, Moneyworks4me Research)<\/p>\n

Inox India has built a strong international customer base. Currently, they are exporting their products and delivering their services to 66 countries. Some of the key geographies for their products and services include the United States, Saudi Arabia, the Netherlands, Brazil, Korea, the United Arab Emirates, Australia, and Bangladesh.<\/p>\n

\"domestic<\/a><\/p>\n

(Source: Company Data, Moneyworks4me Research)<\/p>\n

The company has a history of high customer retention. The consolidated revenue from the repeat customers is as follows:<\/p>\n

\"repeat<\/a><\/p>\n

(Source: Company Data, Moneyworks4me Research)<\/p>\n

Key Customers:<\/strong><\/h3>\n

\"key<\/a><\/p>\n

(Source: Company Data, Moneyworks4me Research)<\/p>\n

Financials <\/strong><\/h3>\n

\"financials\"<\/a><\/p>\n

\"financials<\/a><\/p>\n

\"market<\/a><\/p>\n

(Source: Company Data, Moneyworks4me Research)<\/p>\n

The objective of the issue<\/strong><\/p>\n

The issue is entirely an offer for the sale of 2.21 crore shares.<\/p>\n

Risk Factors<\/strong><\/h3>\n