The initial public offering (IPO) of INOX India Limited (INOXCVA) is set to close today, December 18, 2023, after opening for subscription on December 14.
With a price band of Rs 627 to Rs 660 per equity share, the cryogenic equipment maker and supplier company garnered a strong response from attention from investors.
As of 1:30 pm on the final day of bidding, the INOX India IPO had been oversubscribed 19.52 times, indicating strong demand from investors.
Latest GMP
After two days of strong subscription, the unlisted shares of the company were trading at a premium in the grey market. While the unlisted shares have dipped slightly on the grey market, the current value indicates a bumper listing.
Observers note a premium of Rs 530 per equity share, significantly higher than the opening date’s grey market premium. At this GMP, the anticipated listing price for INOX India shares is estimated to be around Rs 1,190 apiece, marking an impressive premium of over 80 percent.
Key Details of the INOX India IPO:
Subscription status: The IPO has been oversubscribed 19.52 times as of 1:30 pm on the final day, with the retail portion seeing 11.90 times subscription, the qualified institutional buyers portion at 20.48 times, and the NII portion at over 36 times
Issue size: INOX India aims to raise Rs 1,459.32 crore through this offer for sale (OFS).
Lot size: Investors can apply in lots, with one lot comprising 22 company shares.
Allotment date: Following the T+3 listing rule, share allocation is expected on December 19, 2023.
Registrar: Kfin Technologies Limited is the official registrar for the IPO.
Listing platforms: The shares are proposed to be listed on both BSE and NSE.
Listing Date: The likely listing date is December 21, 2023.
Brokerage views
Experts from various brokerages have expressed a positive outlook for the INOX India IPO.
Anand Rathi Research recommends long-term subscription, highlighting the company’s global growth potential, in-house technology, and diverse LNG product range. The valuation, considered fair at the upper price band, reflects a P/E of 39.2 times and a post-equity issue market cap of Rs 5,990.1 crore.
Swastika Investmart also suggests subscribing to the IPO, citing InoxCVA’s leading position in the cryogenic equipment sector, a diverse customer base, a robust order book, and stable financial performance.
Meanwhile, Stoxbox recommends long-term subscription, highlighting INOX India’s favorable position to capitalise on the rising global demand for cryogenic equipment. The company’s strong financial performance, leadership in the Indian market, diversified client base, and export focus contribute to a positive overall outlook.
Overall, the consensus among analysts is optimistic, with a focus on INOX India’s strong market position, technological capabilities, and potential for global expansion. While the IPO has received widespread positive recommendations, investors need to conduct their due diligence before making investment decisions.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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