Inox India IPO sees an 80% grey market premium; shares set to list on Thursday, December 21.

-

Inox India IPO sees an 80% grey market premium; shares set to list on Thursday, December 21

Inox India (InoxCVA), the leading domestic cryogenic equipment supplier, is set to debut on the market on Thursday, December 21, following strong demand. Ahead of listing, Inox India commanded an 88% grey market premium (GMP) at Rs 530, surpassing the issue price of Rs 660. This positive trend follows successful IPOs by DOMS Industries and India Shelter Finance Corporation Ltd, both yielding up to 77% listing gains.




The offer for sale (OFS) occurred from December 14 to December 18, with a price band of Rs 627-660. Various brokerages, including Motilal Oswal Securities, Geojit Financial Services, SBI Securities, DRChoksey FinServ, and Ventura Securities, rated the IPO as 'subscribe.'

Given the favorable market environment and strong subscription demand, analysts anticipate Inox India to witness a solid listing premium exceeding 75%. Despite fully priced valuations for near-term growth, its strategic position in the niche market with global presence and commitment to innovation justifies a strong listing, according to Prashanth Tapse, Sr. VP Research at Mehta Equities Ltd.

Analysts highlight Inox India's brand equity, government support for emissions reduction, robust financial performance, strong R&D capabilities, and a broad customer base as major drivers. The company is well-positioned in the shift towards cleaner fuels and increased investments in the electronics/space sectors. Inox India provides end-to-end solutions, covering design, engineering, manufacturing, and installation of cryogenic equipment and systems, including tanks and beverage kegs.

With three manufacturing facilities in India operating at 70% capacity in FY23, Inox India holds a significant share in the global cryogenic equipment market. In 2022, the market was valued at $11.5 billion, and it is expected to grow at a CAGR of 6.9% to reach $16.6 billion by 2028. As of 2022, Inox India ranks among the top 10 cryogenic equipment manufacturers globally by revenue, as reported by CRISIL. Analysts recommend long-term investors to consider accumulating shares post-listing for attractive returns.

Disclaimer: This article is pure understanding of Gyaanleikh team and we don't allow you rely on the same.

Inox India IPO listing
Cryogenic equipment market
Grey market premium (GMP)
DOMS Industries and India Shelter Finance IPOs
Offer for sale (OFS) pricing
Brokerage ratings on Inox India IPO
Market debut on December 21
Inox India's strategic position
Niche market and global footprint
Valuation of Inox India
Emissions reduction initiatives
R&D capabilities of Inox India
Clean fuels and space sector investments
Cryogenic equipment manufacturing
Manufacturing facilities and capacity utilization
Global cryogenic equipment market growth
Top cryogenic equipment manufacturers
CRISIL report on Inox India
Long-term investment recommendations
Post-listing share accumulation strategy.





Comments

Post a Comment

Best Blogs

IB Interview Questions: M&A : Level 1 M&A Questions

-
Image
1. Why do companies merge? While are many reasons that companies merge the underlying driver of most M&A deals to expedite growth and/or generate cost savings to create value for the owners of the business. When people say that M&A is an ‘art’ and a ‘science’, what does that mean? The science refers to the mechanical valuation methods (Comps, DCF, etc.), but the art is in making a judgment call on valuation based on the outputs of the various valuation methodologies. 2. Who can pay more when buying a company: a Financial buyer or Strategic buyer? Why? Strategic (i.e. corporate) buyers can typically pay more than Financial (i.e. Private Equity) buyers because strategic buyers typically have overlapping operations that can be removed post-merger to generate cost savings (i.e. Synergies). 3. When are sponsors and corporate buyers on equal footing? When a Financial buyer already owns a competing asset, they can generate synergies (which justifies a higher price) and thus are on mor...
Read more

Getting into Investment Banking: A Comprehensive Guide

-
Image
Introduction Breaking into investment banking (IB) is no small feat, whether you're pre-MBA or post-MBA, from a target or non-target school. While high GPAs and test scores are standard, they are often not enough to stand out. Here’s a strategic approach to help you embark on a successful investment banking career. 1. Network Extensively When your application lands at an investment bank, it’s usually reviewed by a small team of bankers responsible for recruiting from specific schools. Given the competitive nature of this field, networking is crucial. Why Networking Matters: Decision-making bankers are more likely to advocate for you if they know you. Especially vital for non-target school students. Engage with alumni and other connections at your target firms. How to Network: Start reaching out to analysts and associates a few months before core recruiting starts. Look for non-target alumni if you're from a non-target school; they often help each other out. Demonstrate Interest...
Read more