INOX India‘s Stock Soars at Rs 949, a Remarkable 43% Premium Over IPO Pricing
In a compelling market debut on December 21, INOX India witnessed its shares commence trading at an impressive Rs 949.65, showcasing a substantial 43 percent premium over the IPO price of Rs 660. Although market analysts had anticipated a more robust 75 percent premium, the slightly tempered upswing is attributed to the prevailing subdued market momentum, as remarked by industry experts.
Robust IPO Performance and Market Dynamics
The INOX India IPO garnered exceptional investor interest, with a subscription rate of 61.28 times during the period spanning December 14-18. Noteworthy participation came from various investor segments, with Qualified Institutional Buyers (QIBs) leading the charge by subscribing 147.80 times their allotted quota. Simultaneously, High Net Worth Individuals (HNIs) and retail investors demonstrated their confidence by subscribing 53.20 times and 15.3 times, respectively, of the designated portions.
Niche Market Standing and Grey Market Buzz
Distinguished as a niche player in the realm of cryogenic equipment manufacturing, INOX India stands out as the pioneer in designing and producing a trailer-mounted hydrogen transport tank for ISRO. Industry experts noted a trading premium of more than 80 percent for INOX India in the grey market.
Financial Triumphs
On the financial front, INOXCVA exhibited a commendable 17 percent year-on-year growth in net profit, registering Rs 152.7 crore for the fiscal year ending March FY23. Concurrently, revenue for the same period marked a substantial 23.4 percent increase, reaching Rs 966 crore.
In the first half of the fiscal year ending September FY24, net profit witnessed an impressive surge of 23.9 percent, totaling Rs 103.3 crore. Additionally, revenue experienced a notable uptick of 16 percent compared to the previous year, reaching Rs 564.6 crore.
Key Drivers of INOX India’s Stock
Market analysts identify several key drivers propelling the success of INOX India’s stock. These include robust brand equity, government initiatives promoting emission reduction, consistent delivery of strong financial performance, formidable research and development capabilities, and a diversified and expansive customer base.
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