Inox India sets IPO price band at Rs. 627-660 apiece
Inox India, a prominent cryogenic storage tank maker, has set the price range for its forthcoming initial public offering (IPO) at Rs. 627 to Rs. 660 per share. The firm intends to raise Rs. 1,459 crore through the stock sale. The public issue will be available for subscription from Thursday, December 14, and will close on Monday, December 18. Anchor investors will receive allocations on December 13.
Offer for sale structure and share allocation
The IPO is completely an offer for sale (OFS) of 2.21 crore shares with a face value of Rs. 2 each. Promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, Ishita Jain, Manju Jain, Lata Rungta, and others will sell shares in the OFS. The Vadodara-based firm won't make any money from the IPO—all funds go to the selling shareholders. Approximately 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
Company background and financial performance
With over three decades of expertise in designing, engineering, manufacturing, and installing equipment and systems for cryogenic conditions, Inox India offers a wide range of products and services. These include standard cryogenic tanks and equipment, custom technology, equipment, and solutions, as well as large turnkey projects used in various industries. For the six-month period ending September 2023, Inox India's total income increased 17% year-on-year to Rs. 580 crore, while net profit surged 24% to Rs. 103 crore.
IPO details and lead managers
Investors can place a minimum bid of 22 shares and in multiples thereafter. The floor price of the share is Rs. 313.50 times the face value of the equity shares, while the cap price is 330 times the face value of equity shares. ICICI Securities and Axis Capital are the book-running lead managers to the issue. The company filed draft papers in August this year and received approval for the same earlier this month.
