Inox CVA IPO: Rs 627-660 Price Band for Rs 1,459 cr Offer

Mumbai, Dec 11 (PTI) InoxCVA, the largest domestic cryogenic storage tank maker, on Monday fixed Rs 627-660 per share as the price band for its Rs 1,459-crore share sale that hits the street on December 14.

The Vadodara-based company's promoter and director Siddharth Jain told PTI here that at the upper end of the price band, the company is valued at Rs 5,990 crore.

The valuation comes at a steep premium over its likely Rs 1,200-crore annual revenue this fiscal, up from Rs 980 crore in FY23 as it has an order of book of Rs 1,100 crore now.

He said the issue will only be an offer for sale wherein the promoter entity Inox India, which has an equal joint venture with the US-based Air Products known as Inox Air Products, which is the largest manufacturer of industrial and medical oxygen in the country, will be divesting 25 per cent of its equity in the company.

“The main purpose of the IPO is to make us more visible in the global markets. Though globally, we are the third largest by volume at Chart of the US and the Chinese state-owned firm CIMC, from a revenue perspective we are too small,” Parag Kulkarni, who is an old hand with the group and an executive director, told PTI.

This is the first IPO from the Inox group after the Inox Leisure (its multiplex arm) issue almost 17 years back. Inox Leisure is now part of the PVR group.

The company, founded in 1992, had reported Rs 980 crore topline in FY23 and had earned Rs 152 crore in net margin. The company is setting up the fourth plant at Savli.

It has three plants, including its flagship LNG tanker making units as also its space programme which supplies to the Isro, CERN and the Iter of France, at Katol near Vadodara.

Both Jain and Kulkarni feel the medium-term growth will come from its LNG tanker business (where it already has over 60 per cent market share and completes with VRV of Italy) as more and more long-haul commercial fleet is being converted to LNG as the primary fuel. Of the 150 LNG tankers on the street, 120 are made by the company and 22 of the 27 LNG stations are also by the company.

As much as 48 per cent of its Rs 980 crore revenue came from exports, and the rest from domestic sales. From a category perspective, close to 71 per cent from industrial gas tanks, 4.2 per cent from cryogenic tanks and 25 per cent from LNG now.

Through the OFS, the company will be selling up to 22,110,955 equity shares. The selling promoter shareholders include Siddharth Jain who will be pairing up to 10,437,355 shares, up to 5,000,000 shares each by the founder and father of Siddharth, Pavan Kumar Jain, and Nayantara Jain.

Selling non-promoter shareholders include Ishita Jain (1,200,000 shares), Manju Jain (2,30,000), Lata Rungta (1,90,000), Bharti Shah, Kumud Gangwal, Suman Ajmera and Rajni Mohatta will be selling 13,400 shares each.

The company employs close to 400 engineers and 1,200 workers of them 7 seven are young women welders.