INOX India Share: Shares of INOX India listed at a premium of 43.88% at Rs 949.65 per share on the NSE on Thursday. The stock was listed at Rs 933.15 on BSE (up 41.39%) as against an issue price of Rs 660.
The INOX India IPO was subscribed 61.28 times during December 14-18, with support from all kinds of investors’ categories. Qualified institutional buyers (QIBs) were in the leading position buying 147.80 times the allotted quota, while high networth individuals (HNIs) and retail investors subscribed for 53.20 times and 15.3 times the portions set aside for them.
Ahead of the listing, the company’s shares traded at a GMP of Rs 500 in the unlisted market.
Inox India, a niche player in the manufacturing of cryogenic equipment and was the first company to design and manufacture a trailer-mounted hydrogen transport tank for ISRO, traded at little more than 80 percent premium in the grey market, analysts said.
On the financial front, INOXCVA has registered a 17 percent on-year growth in net profit at Rs 152.7 crore for the year ended March FY23, and revenue during the same period increased by 23.4 percent to Rs 966 crore.
Net profit in the six months ended September FY24 surged 23.9 percent to Rs 103.3 crore and revenue jumped 16 percent over the last year to Rs 564.6 crore.
According to analysts, the major drivers for this stock are its strong brand equity; favourable push from the government on reducing emissions; consistently delivering a healthy financial performance; strong R&D capabilities; and a broad customer base.
What Should Investors Do?
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., said: “Inox India entered the secondary market today at a listing price of Rs. 949, a gain of around 43% over its issue price of Rs. 660. The IPO received a huge subscription of 61.28x. Though we can consider it a decent listing, it is still below expectations, and the reason behind this is poor market sentiment. Inox India is the leading cryogenic equipment supplier in India, benefiting from rising demand in sectors like healthcare, space exploration, and food processing. It boasts a diversified product portfolio and a strong order book. With strong fundamentals and a growing market, the company has the potential for long-term value creation; thus, we recommend holding it with a long-term view. Also, fresh buying at a lower level can be considered.”
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