“Inox India’s Resounding Success: Rs 1,459.32 Crore IPO Subscribed 13.67 Times, Signals Strong Investor Confidence”

In a resounding display of investor confidence, Inox India’s Rs 1,459.32 crore initial public offering (IPO) garnered substantial interest during the three-day bidding process, concluding on December 18. The Gujarat-based company witnessed a robust response, particularly from retail and non-institutional investors (NIIs), highlighting the widespread appeal of its shares.

The IPO, which featured a price band of Rs 627-660 per share and a lot size of 22 shares, received an overwhelming subscription rate. By the end of the first day, the issue was subscribed 2.79 times, showcasing the immediate interest from investors. The momentum continued into the second day, reaching an impressive subscription rate of 7.07 times.

Notably, Inox India opted for an entirely offer-for-sale mechanism, presenting up to 22,110,955 equity shares for subscription. The bidding frenzy saw investors making bids for 21,15,32,222 equity shares by 12.30 pm on the final day, indicating a robust oversubscription of 13.67 times compared to the offered shares.

The strong participation of retail and non-institutional investors underscored their confidence in Inox India’s growth prospects. The company’s decision to go public at this juncture appears well-timed, capitalizing on the positive sentiment in the market.

In historical context, such enthusiastic response to an IPO signals not only the strength of the company’s fundamentals but also the buoyancy of the market. Inox India’s IPO journey, from the initial days of subscription to the final bidding day, reflects the dynamism and vitality of the financial landscape.

As the three-day bidding concluded, the attention now shifts to the post-listing scenario. The oversubscription rate suggests a potential for strong market performance once the shares are listed. Investors and market enthusiasts keenly await the listing day to witness the actual market reception of Inox India’s IPO.

In summary, Inox India’s IPO has etched its mark in history with a compelling narrative of investor enthusiasm, robust subscription rates, and an overall positive market sentiment. The company’s foray into the public market signifies a significant chapter in its growth story, and the investment community eagerly anticipates the unfolding of the next chapter on the stock exchange.

Inox India’s much-anticipated Rs 1,459.32 crore initial public offering (IPO) witnessed a fervent response from investors, reaching a crescendo on the final day of bidding, December 18. The IPO, characterized by a price band of Rs 627-660 and a lot size of 22 equity shares, saw robust subscription rates throughout its three-day duration.

The Gujarat-based company successfully raised Rs 437.8 crore from anchor investors, finalizing the allocation of 66,33,285 equity shares at a price of Rs 660 apiece. The allocation structure reserved 50% for qualified institutional bidders (QIBs), 15% for non-institutional investors, and the remaining 35% for retail investors.

As the IPO unfolded, retail and non-institutional investors played a pivotal role in propelling the subscription to remarkable levels. By the end of day one, the issue was subscribed 2.79 times, signaling an early vote of confidence from the investing community. The momentum intensified, with the subscription soaring to 7.07 times by the close of the second day.

On the final day, data revealed an overwhelming response, with investors bidding for 21,15,32,222 equity shares, reflecting a staggering oversubscription of 13.67 times compared to the offered 1,54,77,670 equity shares. Notably, retail investors exhibited substantial enthusiasm, subscribing 11.18 times, while non-institutional investors showed an even greater appetite with a subscription rate of 31.10 times. The QIB quota attracted bids at 4.94 times the offered shares.

Founded in 1976, Inox India has established itself as a leading provider in the supply of cryogenic equipment, with a primary focus on tanks. The company’s comprehensive solutions cover design, engineering, manufacturing, and installation of equipment and systems designed to operate in cryogenic conditions. Its robust financials, including superior EBITDA margins over 21%, consistent ROCE of over 30%, and strong asset turns, position Inox India as a formidable player in the global cryogenic solutions market.

In the unofficial market, the grey market premium for Inox India initially stood at Rs 445-450 during the first day of bidding but climbed to an impressive Rs 535-555 per share, indicating an upside of 82-85% compared to the upper end of the price band.

The IPO garnered attention for its alignment with the growing demand for cryogenic equipment, particularly in the LNG storage, distribution, and handling sectors. Inox CVA, the prominent supplier of cryogenic equipment in India by revenue, stands to benefit from the projected 8.4% CAGR in the cryogenic equipment market from CY23 to CY28.

As Inox India prepares for listing on both BSE and NSE on December 21, market analysts express optimism regarding potential listing gains, underlining the company’s dominant positioning, capacity utilization prospects, and the promising avenue of growth presented by the increasing acceptance of hydrogen as a future fuel. ICICI Securities and Axis Capital serve as the book running lead managers, while Kfin Technologies acts as the registrar for the issue.

Inox India’s IPO journey encapsulates a narrative of strong investor confidence, robust subscription rates, and optimistic market sentiments, paving the way for what promises to be a significant listing in the financial landscape.

My Circle story

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