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December 14, 2023
InoxCVA IPO: India’s cryogenic tank maker fully subscribed on first day

Inox India’s initial public offering (IPO) opened on Dec. 14th at Rs 627-Rs 660 ($7.52 – $7.92) per share and fully subscribed after the first day, reports India Today.

The offering is not due to close until Dec. 18, with the IPO scheduled to be allotted on Dec. 19. It will make its stock market listing debut on Dec. 21st.

The Indian company, which manufactures cryogenic tanks and other equipment, is offering 2.21 crore (22100000) shares from initial shareholders, and is expecting to raise Rs 1,459.32 crore (Rs 14593200000, or $175,110,373.74) with the IPO, with the company itself receiving nothing for the sales.

The grey market premium (GMP) on the shares is Rs 445, suggesting an initial listing of Rs 1105, however, the GMP remains unregulated and while it gauges the temperature of a launch, it is not a guarantee. It does indicate that investors perceive profit in the shares beyond the issue price.

What does InoxCVA produce?

The company, which is part of INOX group, specializes in cryogenic tanks and end-to-end cryogenic solutions for transport and storage. INOX’s recent financial performance has been on an upward trend, with India Times reporting a 17% on-year growth for the group in the 2023 financial year. The conglomerate has not issued an IPO since 2006, when it issued Inox Leisure (now part of the PVR Group).

Speaking to Press Trust India, executive director of the group Parag Kulkarni said: “The main purpose of the IPO is to make us more visible in the global markets. Though globally, we are the third largest by volume at Chart of the US and the Chinese state-owned firm CIMC, from a revenue perspective we are too small.”

India’s tech sector is currently experiencing huge growth, with Apple moving the production of a quarter of all iPhones to Karnataka and AMD launching a new design center in Bengaluru. Many companies are eager to minimize dependence on China, especially with export regulations constantly in flux.

Photo credit: DALL-E. This is an AI-generated image.

The post InoxCVA IPO: India’s cryogenic tank maker fully subscribed on first day appeared first on ReadWrite.


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