Leading cryogenic equipment manufacturer INOX India (INOXCVA) has revealed the price band for its initial public offering (IPO) at Rs 627 to Rs 660 per equity share with a face value of Rs 2.
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The IPO subscription period is scheduled from December 14 to December 18, and the allocation to anchor investors will take place on December 13.
The floor price is set at 313.5 times the face value, while the cap price is 330 times the face value of the equity shares. The price-to-earnings ratio based on diluted earnings per share (EPS) for the financial year 2023 is 39.22 times at the cap price and 37.25 times at the floor price. The lot size for the IPO is 22 equity shares, with multiples of 22 equity shares thereafter.
The IPO has earmarked up to 50 per cent of shares for qualified institutional buyers (QIBs), at least 15 per cent for non-institutional investors (NIIs), and a minimum of 35 per cent for retail investors. The basis of allotment will be finalised on December 19, with refunds initiated on December 20, and shares credited to the demat accounts on the same day.
Listing on BSE and NSE is anticipated for December 21, adhering to the mandatory T+3 listing norm.
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INOX India aims to raise funds through an offer for sale of up to 22,110,955 equity shares by selling shareholders, including promoters Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, and Ishita Jain. The book-running lead managers for the IPO are ICICI Securities Limited and Axis Capital Limited, with KFin Technologies Limited as the registrar.
The company, known for its INOXCVA brand, specialises in cryogenic equipment and system design, engineering, manufacturing, and installation.
In FY23, INOX India reported a 17 per cent increase in net profit to Rs 152.71 crore and a 23.4 per cent growth in revenues to Rs 965.9 crore. Despite a decline in EBITDA margin, the company’s financial performance showcases its strong position in the cryogenic equipment sector.
As of today, the grey market premium (GMP) for INOX India IPO is Rs 200, indicating that shares are trading at Rs 860, marking a premium of over 30 per cent.
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While the GMP reflects investors‘ readiness to pay more than the issue price in the secondary market, it is not always an accurate indicator to determine investments
