Inox India makes smart debut

about 2 months ago
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A new listing today – Inox India. As against the IPO price of Rs.660, the stock got listed on the NSE at Rs.949.65 and on the BSE at Rs.933.13. It is now currently trading at Rs.901 levels.

The IPO had met with a great response, subscribing overall 61.28-times of which QIBs took the giant portion at 147.80x, HNIs at 53.2x and Retail investors at 15.3x.

Inox India manufactures cryogenic (sub -100 degree Celsius temperature) equipment, used to store and transport industrial gas (oxygen, nitrogen, hydrogen etc.) and liquid natural gas (LNG). The 30 year old company, operating under brand ‘INOXCVA’, commands nearly 60% market share of the Rs. 3,200 cr domestic oligopolist cryogenic equipment market, serving oil and gas, fertilizer, medical, power and other sectors. Other 2 players operating in Indian market are large diverse MNCs.

In our IPO Analysis, we had concluded - Inox India business is fundamentally strong and growing. The PE multiple offered in the IPO has room to expand. Hence, we advise ‘apply’ in the IPO, both for listing gains and long term portfolio holding.    

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