INOX India’s shares debuted on the stock market with a huge 44% premium over the issue price. The share price on the National Stock Exchange (NSE) rose to Rs 949.65, surpassing the IPO issue price of Rs 660. Simultaneously, the shares were launched on the Bombay Stock Exchange (BSE) at Rs 933.15 per piece.
Strong Start Reflects Investor Confidence
On Thursday, INOX India saw a strong market entry, with shares opening at a 43.88% premium to the IPO issue price. The price on both the NSE and the BSE was a good start for the company.
INOX India’s initial public offering (IPO), which had a price range of Rs 627 to Rs 660 per equity share, received a lot of interest from investors from December 14 to December 18. On December 15, the IPO raised Rs 437.8 crore from anchor investors.
Market Sentiment and Analyst Perspectives
Prior to the IPO, INOX India’s shares commanded a Grey Market Premium (GMP) of around Rs 500 in the unlisted market. Despite prices that invest in near-term growth, analysts attribute the company’s good listing to its strategic position in a narrow market with a global footprint.
“Inox India entered the secondary market today at a listing price of Rs. 949, representing a gain of around 43% over its issue price of Rs. 660,” said Shivani Nyati, Head of Wealth at Swastika Investment Ltd. The IPO received a whopping 61.28x subscription.”
Analyst Recommendations and Market Outlook
Inox India, a renowned cryogenic equipment supplier in India, is anticipating increased demand in industries including as healthcare, space exploration, and food processing. Analysts recommend maintaining the company for the long term, citing its diverse product portfolio and healthy order book of Rs 1,036 crore. Fresh purchasing at lower levels is likewise regarded as a realistic tactic.
IPO Subscription Highlights
The IPO received 61 subscriptions in total, indicating strong demand from qualified institutional purchasers. The retail investor category received 14.82 bids, while the non-institutional investor group received 52.97 bids. The eligible institutional buyer category received a whopping 147.8 subscriptions.
Unique IPO Structure
It is worth noting that INOX India’s IPO was wholly comprised of an Offer for Sale (OFS) of 2.21 crore shares. Because the offer is simply an OFS, no revenues will be received by the company, and all monies will be distributed to the selling shareholders.
INOX India’s Financial Performance
For the six months ending September 2023, INOX India, a renowned cryogenic tank maker, recorded a 17% YoY increase in total income of Rs 580 crore. The company has strong fundamentals and a promising prospect for long-term value development, as seen by a 24% increase in net profit to Rs 103 crore.