Inox India IPO: listing expected on Thursday. What GMP signals ahead of listing?

The shares of Inox India will likely debut on the exchanges on Thursday, December 21. Ahead of the debut, the company’s shares are fetching a premium of Rs 520-540 in the unlisted market.

Considering the upper price band of Rs 660, the stock is likely to start trading with an 82% premium to the issue price.

However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The initial public offer (IPO) of Inox India was subscribed 61 times at close, driven by strong interest from qualified institutional buyers. The category reserved for retail investors was subscribed 14.82 times, while the NII portion garnered bids of 52.97 times. The category reserved for the QIB category was subscribed by a massive 147.8 times.

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Inox India IPO review
Analysts gave a thumbs up to the issue over its fair valuations and promising future growth prospects.

“The company’s extensive product portfolio, diversified customer base, robust order book, and stable financial performance demonstrate its strong competitive position and future growth potential. We recommend a Subscribe rating to the IPO for both potential listing gains and long-term capital appreciation,” said Swastika Investmart.Inox India price band
The company fixed a price band of Rs 627-660. At the upper end, the company plans to raise Rs 1,549 crore.

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Inox India Issue size
The issue is completely an offer for sale (OFS) of 2.21 crore shares with a face value of Rs 2 each. There is no fresh issue segment in the IPO. Under the OFS, Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, Ishita Jain, Manju Jain, and Lata Rungta among others will offload shares.

Inox India overview and financials
Inox India, one of the leading cryogenic tank manufacturers, has over 30 years of experience offering solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions.

The company has an order book of Rs 1036 crore. The order book includes anticipated revenues from the unexecuted portions of existing contracts, as of September 2023.

For the six month period ended September 2023, its total income grew 17% year-on-year to Rs 580 crore, while net profit jumped 24% to Rs 103 crore.

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