InoxCVA, a name that might not ring familiar to many, holds a pivotal role in a niche yet vital sector—manufacturing specialized cryogenic equipment. As the company gears up for its initial public offering (IPO) in the Indian markets, it’s an opportune moment to delve into its fascinating journey and the potential it holds for investors and industries alike.
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Inception of InoxCVA
The inception of InoxCVA traces back to the visionary ambitions of Devendra Jain in the 1960s. What commenced as a foray into selling industrial gases later evolved into a pioneering venture focusing on the production of cryogenic equipment. The company’s strategic acquisition of Cryogenic Vessel Alternatives (CVA) in 2009 marked a significant milestone, leading to the formation of InoxCVA—a move that bolstered its position in the cryogenic equipment domain.
InoxCVA’s forte lies in crafting specialized Air Separation Units, essential for converting atmospheric gases like oxygen, nitrogen, and argon into their liquid states. These cryogenic gases find multifaceted applications, from supporting healthcare with oxygen supply to facilitating space research with liquid hydrogen tanks for organizations like ISRO. The company’s involvement in prestigious international projects, notably the ITER project in France, underscores its global recognition and expertise.
What sets InoxCVA apart is its dominance in the cryogenic equipment space within India. With revenues significantly surpassing competitors and a remarkable 50% of its income stemming from exports, the company has firmly established its stronghold in the international market. Its diverse revenue streams, spanning industrial gases, LNG transportation, and cryo-scientific divisions, showcase its adaptability and resilience across industries.
How does InoxCVA earn money
As of FY23, LNG division, Cryo Scientific division, and Industrial Gases division.
- LNG division: 25% of revenue from as it provides tankers and cargo to transport liquefied natural gas (LNG).
- Cryo Scientific division: 4% of the revenue from equipment for biological sample preparation for medical research, and non-oxygenic gases for food and beverage.
- Industrial Gases division: 71% of the revenue as it provides equipment for the dairy industry, biological sample preservation for medical research, and non-cryogenic kegs for food and beverage.
Financial analysis – InoxCVA IPO
Company has strong fundamentals.
| Financial parameter | Values |
|---|---|
| ROE | 27.79% |
| EPS (Rs) | 16.83 |
| Market Cap (₹ Cr.) | 5990.39 |
| RoNW | 27.79% |
| ROCE | 36.53% |
| P/E (x) | 39.22 |
Future outlook for InoxCVA
Looking toward the future, InoxCVA stands at the precipice of transformative energy trends. As the world transitions from fossil fuels to cleaner alternatives, the demand for transitional fuels like natural gas is surging. InoxCVA’s expertise in storing and transporting liquefied natural gas (LNG) positions it favorably to ride this wave of growth. Moreover, the company’s foray into hydrogen energy, exemplified by its construction of massive liquid hydrogen tanks, aligns with the burgeoning global interest in renewable energy sources.
The anticipated IPO launch presents a compelling opportunity for investors eyeing a company deeply entrenched in pioneering technological advancements. InoxCVA’s potential for exponential growth in the clean energy sector, coupled with its proven track record and international acclaim, signifies a promising outlook for stakeholders.
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Details of InoxCVA IPO
| Parameter | Details |
|---|---|
| IPO Issue Size | Rs 1,459.32 crores |
| Type of Issue | Offer for sale of 2.21 crore shares |
| IPO Subscription Period | December 14, 2023, to December 18, 2023 |
| Allotment Date | Expected on Tuesday, December 19, 2023 |
| Tentative Listing Date | Thursday, December 21, 2023 |
| IPO Price Band | ₹627 to ₹660 per share |
| Minimum Lot Size | 22 Shares |
| Minimum Investment (Retail Investors) | ₹14,520 |
| Minimum Investment (sNII) | 14 lots (308 shares), amounting to ₹203,280 |
| Minimum Investment (bNII) | 69 lots (1,518 shares), amounting to ₹1,001,880 |
| Book Running Lead Managers | ICICI Securities Limited and Axis Capital Limited |
| Registrar for the Issue | Kfin Technologies Limited |
As the curtains rise on the InoxCVA IPO, it beckons investors to partake in a journey thru the intersection of innovation, sustainability, and global impact. The company’s commitment to revolutionizing cryogenic technology and its strategic positioning within burgeoning energy markets marks it as a beacon of promise in an evolving industrial landscape.
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Disclaimer:
The above content provided regarding INOXCVA IPO in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
