Inox India files draft IPO papers with Sebi to raise funds
Inox India Ltd, a company specializing in manufacturing cryogenic tanks, has submitted the draft documents to the Securities and Exchange Board of India (SEBI) for the purpose of raising funds through an initial public offering (IPO).
The IPO is structured as a pure “offer-for-sale” (OFS), meaning that the shares being issued are existing shares held by the company’s current shareholders and promoters, rather than issuing new shares. The IPO is set to comprise a total of up to 22.11 million shares.
The breakdown of the offer-for-sale includes:
– Siddharth Jain: Up to 10.44 million shares
– Pavan Kumar Jain: Up to 5 million shares
– Nayantara Jain: Up to 5 million shares
– Ishita Jain: Up to 1.2 million shares
– Manju Jain: Up to 2.3 lakh shares
This approach allows the existing shareholders and promoters to monetize a portion of their holdings by selling shares to the public, while also providing an opportunity for investors to acquire shares in the company.
The submission of draft papers to SEBI is an initial step in the IPO process, and once approved by SEBI, the company can move forward with launching the IPO and eventually listing on a stock exchange.
ICICI Securities and Axis Capital have been selected as the lead managers for Inox India Ltd’s upcoming initial public offering (IPO). As lead managers, these financial institutions will play a critical role in managing various aspects of the IPO, including underwriting, pricing, marketing, and distribution of the offered shares.
Inox India Ltd, headquartered in Gujarat, is a prominent name in the field of cryogenic equipment manufacturing. With a rich history spanning over three decades, the company has garnered extensive expertise in producing cutting-edge solutions for cryogenic conditions. Their offerings encompass a wide range of products, including cryogenic tanks, equipment, and complete turnkey projects catering to diverse industries.
The company’s comprehensive portfolio finds application across multiple sectors, such as industrial gases, liquefied natural gas (LNG), healthcare, aviation, and more. This demonstrates their versatility in addressing the specialized needs of various industries that rely on cryogenic technologies to handle extremely low-temperature conditions.
Notably, Inox India’s influence extends beyond domestic boundaries. The company stands as a significant exporter of cryogenic tanks, establishing itself as a leading player in the global market. Their prowess in manufacturing cryogenic equipment is not confined to commercial applications alone; they also contribute to research endeavors worldwide by producing advanced cryogenic equipment tailored for scientific exploration and experimentation.
By capitalizing on its decades of experience and innovative capabilities, Inox India has secured a prominent position in the cryogenic equipment landscape. As the company seeks to expand its operations through an IPO, it aims to leverage its expertise, reputation, and industry insights to capitalize on growth opportunities within the dynamic markets it serves. However, as with any investment decision, it’s crucial for potential investors to conduct thorough due diligence, considering the company’s financials, market trends, and business strategies before participating in the IPO.
Inox India Ltd boasts a strong operational foundation with three state-of-the-art manufacturing facilities strategically located across different regions in India. These facilities are situated in Kalol (Gujarat), Kandla Special Economic Zone (SEZ) in Gujarat, and Silvassa in Dādra and Nagar Haveli.
As of the fiscal year 2023, the company’s manufacturing prowess is reflected in its significant installed capacity, which includes 3,100 Equivalent Tank Units (ETUs), each representing a 10,000-litre cryogenic storage tank. This substantial storage capacity underscores Inox India’s ability to meet the demands of various industries that require specialized cryogenic storage solutions, such as industrial gases, LNG, and healthcare sectors.
Moreover, the company’s capabilities extend beyond large storage tanks. Inox India’s installed capacity also includes the production of 2.4 million disposable cylinders. These cylinders play a pivotal role in facilitating the distribution and transportation of gases and liquids that need to be stored under cryogenic conditions.
A testament to the company’s robust business outlook is its substantial order book. As of May 31, 2023, Inox India’s order book stood at Rs 1,003.15 crore. This signifies the strong demand for its products and solutions within the cryogenic equipment market. The impressive order book not only reflects current demand but also provides visibility into the company’s future revenue potential.
With its strategically located manufacturing facilities, diversified product portfolio, and a significant order book, Inox India is positioned to capitalize on the growing demand for cryogenic equipment across various sectors. As the company moves forward with its IPO plans, investors have the opportunity to participate in its growth story and contribute to its ongoing success in the dynamic cryogenic technology landscape. However, potential investors should exercise due diligence by assessing the company’s financial performance, market trends, and competitive positioning before making investment decisions.
In the fiscal year 2023, Inox India Ltd demonstrated notable growth in its financial performance. The company’s revenue surged to Rs 965.90 crore, marking a substantial increase from Rs 782.71 crore reported in the previous year. This significant growth in revenue underscores the company’s ability to capture market opportunities and meet the demands of its clients.
The growth in revenue was also reflected in the company’s net profit for the fiscal year. Inox India reported a net profit of Rs 152.71 crore for FY23, compared to Rs 130.50 crore in the previous year. This increase in net profit indicates the company’s efficiency in managing its operations and generating returns for its shareholders.
Despite the growth in revenue and net profit, it’s important to note that the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin experienced a slight decline. The EBITDA margin for FY23 stood at 22.62 percent, compared to 23.47 percent in the previous fiscal year. This decline could be attributed to various factors, including changes in operating costs or other financial dynamics.
One particularly noteworthy aspect is the significant reduction in the company’s total debt. As of March 2023, Inox India’s total debt was recorded at Rs 8.99 crore, a substantial decrease from Rs 54.54 crore in the previous year. This reduction in debt signifies the company’s efforts to strengthen its financial position and optimize its capital structure.
In summary, Inox India’s financial performance for FY23 showcases impressive growth in both revenue and net profit, coupled with a substantial reduction in debt. While the EBITDA margin experienced a slight decline, the company’s strategic focus on enhancing its financial position and operational efficiency is evident. As with any financial analysis, it’s important for investors to consider a holistic view of the company’s performance, including its growth trajectory, industry trends, and competitive landscape, before making investment decisions.
