Inox India files draft papers

Gujarat-based cryogenic tank maker Inox India Ltd has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise funds through a sale of shares.

The initial public offering (IPO) will comprise an offer for sale (OFS) by promoters and other shareholders. It will include 10.44 million shares from Siddharth Jain, 5 million shares each from Pavan Kumar Jain and Nayantara Jain, and 1.2 million shares from Ishita Jain, besides others.

The company has appointed ICICI Securities Ltd and Axis Capital Ltd as managers to the issue. The object of the offer is to carry out OFS of up to 22.11 million shares by selling shareholders. The proceeds of the sale will go to the selling shareholders, not the company.

Inox India is a cryogenic equipment manufacturer with over 30 years of experience. It provides solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions. These include standard cryogenic tanks and equipment, bespoke technology, equipment and solutions as well as large turnkey projects .

The company operates three manufacturing facilities in Kalol (Gujarat), Kandla SEZ (Gujarat), and Silvassa (Dadra and Nagar Haveli). In FY23, its installed capacity included 3,100 equivalent tank units (10,000-ltr cryogenic storage tanks) and 2.4 million disposable cylinders. As on 31 March, its order book stood at ₹1,003.15 crore.

The company’s net profit increased 17% to ₹152.71 crore in FY23, from ₹130.5 crore in FY22. Its revenues also increased 23.4% to ₹965.9 crore in FY23, from ₹782.71 crore in FY22. However, Ebitda margin declined to 22.62% in FY23, from 23.47% in FY22.

Total debt as on 31 March was ₹8.99 crore, down from ₹54.54 crore in the previous year. Ebitda stands for earnings before interest, taxes, depreciation and amortisation.