INOX India IPO subscribed fully subscribed on Day 1. Check GMP, price band and more

The initial public offering (IPO) of INOX India (INOXCVA) was fully subscribed on the first day, with retail investors leading from the front, followed by healthy participation from non-institutional investors (NIIs).

At 1:30 pm, the retail portion had been subscribed 1.77 times, while the shares reserved for NIIs were subscribed 1.66 times. The quota for qualified institutional buyers (QIBs) saw the least subscriptions at 0.1 times.

It may be noted that the IPO of the cryogenic equipment maker and supplier company will be open for subscription till December 18.

Price band, GMP and more

The company has fixed the price band of the IPO at Rs 627-660 per equity share and plans to raise Rs 1,459.32 crore. A bidder can apply in multiples of lots, with each lot in the INOX India IPO consisting of 22 company shares.

On the unlisted grey market, shares of INOX India were available at a premium of Rs 445. This suggests a bumper listing for the company at Rs 1,105, marking a premium of over 67 per cent.

However, investors should not that the grey market premium or GMP is just an unofficial indication of the potential listing price. This is why experts recommend examining more important aspects like financial results and key operations of a company before investing in their IPOs.

The public issue is most likely to be listed on December 21, 2023, next week, while share allocation is likely by December 19.

Brokerage views

As far as expert views are concerned, most brokerages have shared a positive outlook for the IPO of INOX India.

Anand Rathi Research recommends subscribing for the long term to the Inox India IPO, highlighting the company’s global market growth potential, in-house technology, and LNG product range.

It said the valuation at the upper price band is considered fair, with a P/E of 39.2 times and a market cap of Rs 5,990.1 crore post the equity issue.

Swastika Investmart suggests subscribing to the IPO, highlighting InoxCVA’s leading position in the cryogenic equipment sector, diverse customer base, robust order book, and stable financial performance.

Meanwhile, Stoxbox recommends subscribing for the long term, highlighting Inox India’s favorable position to benefit from the increasing demand for cryogenic equipment globally.

The company’s strong financial performance, leadership in the Indian market, diversified client base, and focus on exports contribute to its positive outlook, it noted.

Published By:

Koustav Das

Published On:

Dec 14, 2023

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