About the Company:
Inox india Ltd is the largest supplier of cryogenic equipment in India by revenue in Fiscal 2023
Company has over 30 years of experience offering solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions.
Company’s offering includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions as well as large turnkey projects.
Company’s equipments and solutions are used in diverse industries such as industrial gases, liquified natural gas (“LNG”), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and construction.
In addition,company also manufacture a range of cryogenic equipment utilised in global scientific research projects.
Company is also were the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2023.
As at September 30, 2023, Company’s Order Book was Rs.1036.6 crores
Company’s business comprises of three divisions:
• Industrial Gas Division : This division manufactures, supplies and installs cryogenic tanks and systems for storage, transportation and distribution of industrial gases like such as green hydrogen, oxygen, nitrogen, argon, carbon dioxide (CO2), hydrogen and provides after-sales services.
• LNG Division: This division manufactures, supplies and installs standard and engineered equipment for LNG storage, distribution and transportation as well as small-scale LNG infrastructure solutions suitable for industrial, marine and automotive applications.
• Cryo Scientific Division: This division provides equipment for technology intensive applications and turnkey solutions for scientific and industrial research involving cryogenic distribution.
More Details about Industrial Gas Division designs:
Company’s Industrial Gas Division designs, manufactures, supplies and installs vacuum insulated cryogenic storage tanks and systems for the storage, distribution and transportation of industrial gases.
Company designs and manufactures customized cryogenic storage tanks and systems for our customers’ requirements as well as standard storage tank in accordance with industry standards.
Company’s storage tank offering includes stationery storage tanks from 1,000 litres to one million litres capacity, portable storage tanks from 1 litre to 1,000 litres capacity and transport tanks and tankers/trailers up to 60,000 litres capacity.
Company also provide engineering, procurement and construction (“EPC”) services for cryogenic solutions including bulk storage and regasification equipment, typically associated with petrochemical or steel projects.
More Details about LNG Division:
Company’s LNG Division designs, manufactures and installs standard and engineered solutions for LNG and liquid compressed natural gas (“LCNG”) including static storage tanks up to one million litres capacity, transport trailers, LNG satellite stations for industrial users, marine fuel tanks, LNG and LCNG fuel stations and LNG vehicle fuel tanks.
In the LNG tank segment, we have supplied over 60% of the tanks in both the stationary tank segment which includes all LNG applications including LCNG stations and trailer mounted mobile LNG tanks in
India.
More Details about Cryo Scientific Division:
Company’s Cryo Scientific Division designs, manufactures and installs equipment for technology intensive industrial applications and turnkey solutions for scientific and industrial research involving cryogenic distribution.
Company’s activities are focused on customized cryogenic storage and distribution systems for space research, cryogenic fuel filling systems for launch pads, space simulation chambers, vacuum jacketed piping and cryostat for magnetic resonance imaging (“MRI”) magnets.
Company is also engaged as one of the few Indian companies in the International Thermonuclear Experimental Reactor (“ITER”) project, which is an international nuclear fusion research and engineering megaproject.
Company’s Consolidated revenue from operations by business division:
Company’s Customer base:
Company has a diversified customer base across industry sectors and geographies. In the six months ended September 30, 2023 and in Fiscal 2023, Fiscal 2022 and Fiscal 2021, company provided equipments and systems to 1,255 domestic customers and 254 international customers across three divisions.
Company’s Order Book:
Company’s Customer List:
Company’s customer includes names like Hyundai Engineering and Construction Co Ltd, INOX Air Product Pvt Ltd, Carbacid (CO2) Ltd, Navin Flourine International Ltd, National Refrigerants Inc, Pentrade Global LLC, Prodair Air Products India Pvt Ltd, Saint Gobain India , Shell Energy India and ISRO.
Company’s Revenue from Exports:
Company exported products and delivered services to 66 countries. Some of the key geographies for company’s products and services include the United States, Saudi Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh.
In the Fiscal 2023 company’s revenue from exports was Rs.442.6 cr, ie. 45.83% of the total revenue.
Revenue from Exports to Various Countries:
Company’s Manufacturing Facilities:
Company has three manufacturing facilities located at Kalol in Gujarat, the Kandla Special Economic Zone (“Kandla SEZ”) in Gujarat and Silvassa in the Union Territory of Dādra and Nagar Haveli.
As of October 31, 2023, company had 1,016 employees, and we had 419 engineers and 144 welders at three manufacturing facilities.
Company’s Installed Capacity:
In the Fiscal 2023, Fiscal 2022 and Fiscal 2021, our installed capacity of cryogenic tanks and related items was 3,100, 3,100 and 2,200 Equivalent Tank Units (which are cryogenic storage tanks of 10,000 litres), respectively, and 2.4 million, 2.4 million and 1.4 million disposable cylinders, respectively.
Management Team:
- Mr. Pavan Kumar Jain (Designation: Chairman and Non-Executive Director)
- Mr. Siddharth Jain (Designation: Non-Executive Director (Non- Independent)
Objectives of the Issue:
Offer For Sale: (Rs. 1459 cr)
- Company will not directly receive any proceeds from the Offer and the entire Offer Proceeds, after deducting the Offer related expenses and the relevant taxes thereon, will be received by the Selling Shareholders.
Positives for the Company:
Growing demand for cryogenic equipment across geographies.
- The demand for cryogenic equipment across geographies is expected to be driven by the increased demand for cleaner fuels such as LNG and hydrogen due to the focus on reducing carbon emissions from conventional energy sources.
- Company is well positioned to capture this global market growth with inhouse technology as well as LNG product range that includes the entire value chain.
Company has expertise in hydrogen storage, transportation and distribution.
- In hydrogen,company’s engineering teams are developing products and systems in complex industry environments like hydrogen storage, transportation and distribution to address the need for large scale movements of liquid hydrogen.
- For example, Inox india Ltd was the first Indian company to manufacture a trailer mounted hydrogen transport tank, which was designed jointly with the Indian Space Research Organisation (“ISRO”).
- Company produced and shipped a 238 kl liquid hydrogen storage tank for a liquid hydrogen plant in South Korea.
- Company also have recently produced and shipped four 311 kl liquid hydrogen storage tanks for another customer in South Korea for the construction of three liquid hydrogen plants.
Leading Indian supplier and exporter of cryogenic equipment and solutions.
- In Fiscal 2023, we were the largest supplier of cryogenic equipment in India by revenues. Further, with exports to 66 countries company is well placed to capitalize on global opportunities in cryogenic equipment and systems.
- Company was also the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2023.
Large portfolio of specialized cryogenic equipment catering to various industries.
- Company’s equipment and systems are used in industries such as energy, industrial gases, LNG and LCNG, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals and construction.
Diversified domestic and international customer base across industry sectors.
- Company has built a strong Domestic and international customer base. In the Fiscal 2023 , company exported products and delivered services to 66 countries.
- Some of the key geographies for company’s products and services include the United States, Saudi Arabia, the Netherlands, Brazil, Korea, United Arab Emirates, Australia and Bangladesh.
Company plans to Capitalize on opportunities in LNG and hydrogen as part of the global clean energy transition.
- The demand for cryogenic equipment across geographies is expected to be driven by the increased demand for cleaner fuels such as LNG and hydrogen due to the focus on reducing carbon emissions from conventional energy sources.
- In India, the national objectives in line with the Paris Agreement are expected to increase demand for power generation and vehicles fuelled by cleaner fuels like LNG, LCNG and hydrogen.
- Company intends to continue to be an integral part of India’s journey toward cleaner energy sources and achieving sustainability by supplying the necessary cryogenic equipment across key industry segments, particularly LNG and hydrogen that offer attractive market opportunities.
Company Plans to Expand standard cryogenic and non-cryogenic equipment business into international markets.
- Company is looking to expand the geographic reach for equipments that can be produced at prices which are competitive in the international market.
- In addition, company is also considering expanding the non-cryogenic equipment business to include the manufacture of stainless-steel metal containers.
Expanding our large turnkey project business.
- Company aims to change the revenue mix over time towards large turnkey margin accretive projects, which offers better margins because of the limited competition for these projects, the economies offered by their scale and the large engineering and customization elements to these types of projects.
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of Inox india Ltd. Accordingly, it is not possible to provide an industry comparison in relation to the Company.
Financials of the Company:
| (in Crores) | FY 21 | FY22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 608.9 | 803.71 | 984.1 | 579.9 |
| Net Profit | 96.1 | 130.4 | 152.7 | 103.3 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 14th December 2023 |
| Issue Closes on | 18th December 2023 |
| Issue Price | Rs.627 – 660 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35% |
| Minimum Lot | 22 Shares |
| Minimum Investment | Rs.14,520 |
| Issue Constitutes | 24.36% |
| Issue Size | Rs.1459 cr ($175 million ) |
| Market Cap | Rs.5990 cr ($ 721 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 2,21,10,955 |
| Equity Shares Prior to the Issue | 9,07,63,500 |
| Equity Shares after the Issue | 9,07,63,500 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th December 2023 |
| Initiation of Refunds | on or Before 20th December 2023 |
| Credit of Equity Shares: | on or Before 20th December 2023 |
| Listing Date: | on or Before 21st December 2023 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 16.83 | 39.21 | 27.79% | 60.54 |
| Should You Subscribe or Not ? |
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Inox India Ltd emerged as India’s leading supplier of cryogenic equipment in Fiscal 2023, boasting the highest revenue in the sector. With a robust history spanning over three decades, the company has cultivated expertise in providing comprehensive solutions encompassing design, engineering, manufacturing, and installation of equipment and systems tailored for cryogenic conditions. Inox India’s diverse product portfolio ranges from standard cryogenic tanks and equipment to bespoke technologies, beverage kegs, and expansive turnkey projects. This breadth of offerings positions the company as a versatile player in the market, capable of catering to a wide array of client needs. Recognized for its immense growth potential, Markets Guruji recommend subscribing to Inox India Ltd, anticipating promising returns. With its established track record and forward-looking strategies, Inox India stands poised to maintain its leadership in India’s cryogenic equipment sector, further solidifying its position as a market frontrunner. |
| Company Contact Info: |
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| Inox India Ltd 9th Floor, K P Platina, Racecourse, Vadodara – 390 007, Gujarat, India; Telephone: +91 265 6160100 E-mail: secretarial.in@inoxcva.com Website: www.inoxcva.com |
| IPO Registrar Info: |
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| KFin Technologies Limited Selenium, Tower-B, Plot 31 & 32, Financial District Nanakramguda, Serilingampally, Hyderabad Rangareddy 500 032, Telangana, India Telephone: +91 40 6716 2222 E-mail: inox.ipo@kfintech.com Website: www.kfintech.com |
| Check IPO Allotment Status: |
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KfinTech Website (Click on the below Link)http://kfintech/IPO/Allotment_Status |
