IPO Product Note

Inox India Ltd. Neutral

Issue Highlights Key Highlights

Issue Open December 14, 2023  Company background: Inox India (Inox CVA) is the largest supplier of
Issue Close December 18, 2023 cryogenic equipment in India by revenue in FY23. They have over 30 years
of experience offering solutions across design, engineering, manufacturing
Issue Price Rs 627 - Rs 660 Per share and installation of equipment and systems for cryogenic conditions. They
Total Issue Size Rs 1,459.3 Cr offer products amongst the three businesses it operates which includes
Industrial Gas, LNG and Cryo Scientific and its revenue share is ~64%,
Of which
~30.5% & ~5.5%, respectively as on 6MFY24. They have 3 manufacturing
Offer Issue Rs 1,459.3 Cr facilities located at Kalol and the Kandla SEZ in Gujarat and third one in
Face Value Rs 2 Per share Silvassa in the Union Territory of Dādra and Nagar Haveli. As at September
30, 2023, their order book was Rs 10,366.1mn. They earn revenue in the
Market Lot 22 Equity Shares ratio of 40% & 60% from domestic & export market, respectively.
Issue Type Book Built Issue
 Provides a portfolio of specialized cryogenic equipment engineered to
global quality standards: They offer comprehensive solutions across
Offer Structure design, engineering, manufacturing and installation of standard as well as
QIB Category 50% customized cryogenic equipment and systems. They have developed,
commercialized and serviced products spanning across the entire
Retail category 35%
cryogenic value chain and requires trained manpower with skills as well as
Non-Institutional 15% they benefit from the lower engineering costs in India compared to the
rest of the world. Besides, their products are used in industries such as
Lead Book Running Managers energy, industrial gases, LNG and LCNG, steel, healthcare, chemicals,
fertilizers, aviation and aerospace, pharmaceuticals & construction.
 ICICI Securities Ltd
 Diversified domestic and international customer base: They have a
 Axis Capital Ltd
diversified customer base across industry sectors and geographies and
provides equipment & systems to over 1,201 domestic customers and
Registrar To The Offer over 228 international customers across its divisions. Their, major
 KFin Technologies Ltd. customers includes Air Liquide Global E&C Solutions India, All Safe Global,
Baif Development Research Foundation, CRYONiQ s.r.o., Gulf Cryo LLC,
Hyundai Engineering and Construction Co., INOX Air Product, Navin
Fluorine International, National Refrigerants Inc, Pentrade Global LLC,
Caribbean LNG Inc, AGP City Gas Pvt Ltd, IRM Energy Limited, Saint Gobain
India, Shell Energy India, ISRO, etc.
 Strong product development and engineering focus: The company has an
in-house engineering team to develop new products and solutions and
continues its focus on product development and engineering. In the last 3
to 5 years, the company has developed products that comply with ISO
containers standards and international standards, along with maintaining
competitive position, addressing customer needs and industry
developments. Their activities are focused on developing newer
technologies, engineering new products, reducing the cost of production,
simplifying manufacturing processes, improving safety and reducing the
environmental impact.
 Financials: Its revenue/PAT grew by 27.5% & 26.1% CAGR over FY21-23
while the company is trading at a PE of 39.2x its FY23 EPS.
 Key risk: 1) Any restriction on import of components or raw materials
Research Analyst
could impact business. 2) Require to meet strict quality requirements,
Nirvi Ashar regular inspections and audits. 3) Any slowdown in exports due to tariffs
nirvi.ashar@religare.com and trade barriers and international sanctions may impact business.

13th December, 2023

Inox India Ltd.

Research Team

Siddarth Bhamre siddarth.bhamre@religare.com

Ajit Mishra ajit.mishra@religare.com

Manoj M Vayalar manoj.vayalar@religare.com

Nirvi Ashar nirvi.ashar@religare.com

Gaurav Arora gaurav.arora3@religare.com

Akshay Tiwari akshay.tiwari@religare.com

Abhijeet Banerjee abhijeet.banerjee@religare.com

Gaurav Sharma gauravsharma2@religare.com

Rohan Shah rohan.shah@religare.com

Riddhika Mirajkar riddhika.mirajkar@religare.com

Ashwani Harit ashwani.harit@religare.com

Inox India Ltd.

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India
(Research Analysts) Regulations, 2014 and Research Disclaimer at the following link : htps://www.religareonline.com/disclaimer

Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014
is/are as under:

Statements on ownership and material conflicts of interest, compensation– Research Analyst (RA)

[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to
questions under F(a) to F(j) below, are given separately]

S. No. Statement Answer

Tick appropriate
Yes No
I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of No
Interest is given below this table]

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject No
company, at the end of the month immediately preceding the date of publication of the research report or date of
the public appearance?

I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the No
research report or at the time of public appearance?

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve No
months?
I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

I/we have received any compensation for products or services other than brokerage services from the subject No
company in the past twelve months?

I/we have received any compensation or other benefits from the subject company or third party in connection with No
the research report?
I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

Nature of Interest ( if answer to F (a) above is Yes :

…………………………………………………………………………………………………………………………………………………
Name(s) with Signature(s) of RA(s).
[Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to
questions under F (a) to F(j) above , are given below]

Copyright in this document vests exclusively with RBL. This information should not be reproduced or redistributed or passed on directly or indirectly in any
form to any other person or published, copied, in whole or in part, for any purpose, without prior written permission from RBL. We do not guarantee the
integrity of any emails or attached files and are not responsible for any changes made to them by any other person.

Disclaimer: https://www.religareonline.com/disclaimer

IPO Product Note