December 7, 2023
New Delhi, India
Article:
In a dynamic financial landscape, INOXCVA, renowned for its cryogenic solutions, is set to launch an Initial Public Offering (IPO) in December. The move comes on the heels of regulatory approval from the Securities and Exchange Board of India (Sebi), marking a pivotal moment for the company.
Regulatory Green Light
Sebi recently lifted the abeyance on the National Securities Depository’s (NSDL) draft red herring prospectus (DRHP), potentially paving the way for a Rs 3,000-crore IPO. While the final Sebi observation is pending, this development underscores the regulator’s role in scrutinizing IPOs for compliance and transparency.
IPO Landscape: Inox India and Stanley Lifestyles
In tandem with this, Inox India and Stanley Lifestyles have received Sebi’s final observations for their IPOs. Inox India’s secondary share sale of 22.11 million shares and Stanley’s plan to raise Rs 200 crore through a fresh capital injection indicate the market’s appetite for diverse offerings.
Oil Price Blues
Meanwhile, the global oil market faces challenges, with Brent crude dropping below $78 a barrel, nearing its July low. Despite Saudi Arabia’s assurance of potential OPEC+ supply cuts extension, concerns over oil prices persist.
INOXCVA’s Strategic Approach
INOXCVA’s IPO, planned as an offer-for-sale (OFS) of up to 22.11 million shares, reflects a strategic decision. The management emphasizes that the primary goal is to enhance market visibility rather than solely raising capital. The company’s three-decade-long expertise in cryogenic equipment positions it as a significant player in the industry.
Also Read: Hindustan Zinc Announces Second Interim Dividend, Vedanta Faces Debt Repayment Deadline
Financial Snapshot
As of 2022-23, INOXCVA reports a commendable financial performance. A 17% rise in net profit, reaching Rs 152.71 crore, and a revenue growth of 23.4% to Rs 965.9 crore are noteworthy. However, there’s a slight dip in EBITDA margin, and the total debt has significantly reduced to Rs 8.99 crore.
Future Prospects
INOXCVA’s operational facilities across Gujarat and Dadra and Nagar Haveli, along with its diverse product portfolio, make it a key player in cryogenic solutions. The IPO, facilitated by ICICI Securities and Axis Capital, is expected to contribute to the company’s market visibility.
In conclusion, INOXCVA’s upcoming IPO stands at the intersection of regulatory clearances, market dynamics, and a strategic vision. As the energy sector grapples with oil price uncertainties, INOXCVA’s move into the public market presents an opportunity for investors and industry enthusiasts alike.
