INOX Leisure India Limited – A Closer Look at the Initial public offering

Introduction

Inox India Limited is all set to launch its third IPO, making proper fund management crucial. In this blog, we will discuss the important points related to the upcoming IPO, starting from the company’s inception in 1976 to its important dates and financials.

Company Overview

Inox India Limited was incorporated in 1976 and has three main divisions: Industrial gas, LNG, and Cryoscientific. The IPO is scheduled to open on December 14th and close on December 18th, with the listing expected to happen on December 19th or 20th. Retail investors will have the opportunity to apply for 22 shares at a price of Rs. 14,520 per lot. The small category allows for the application of 14 lots, while the big category allows for the application of 69 lots.

Why Retail Investors Should Consider

The retail category is particularly attractive, as it constitutes 35% of the IPO. This means that there is a higher chance of getting an allotment in this category. Additionally, the promoter’s holding stands at 99.3%, making it a relatively safer option for investors. However, it is important to note that the IPO size is 1459 crores, with an OFS (Offer For Sale) component. This means that the company’s objective is to complete the sale of existing shares rather than raising fresh capital.

Financial Performance

In terms of financials, Inox India Limited has shown consistent growth. The total assets have grown from 687 crores in 2021 to 1155 crores in 2023, representing a growth rate of 80%. The revenue has also seen a significant increase, from 608 crores in 2021 to 984 crores in 2023, with a growth rate of 22.46%. The profit after tax has grown at a rate of 17.2%, reaching 152 crores. The company has also maintained a comfortable P/E ratio of 39.2 and a market capitalization of 5990 crores. The return on equity stands at 27.79% and the return on capital employed is 36.53%.

Why Study the IPO?

It is important to study the Inox India Limited IPO as it is the third IPO in quick succession. Analyzing the base formation and breakout data can provide valuable insights for future investments. Additionally, understanding the financials and important ratios of the company can help in making an informed decision. With multiple IPOs on the horizon, it is crucial to have a well-researched strategy and manage funds effectively.

Investment Strategies

If you have limited funds, it is advisable to apply for the subsequent IPOs in the big category. Alternatively, if you have family members who can apply, you can consider applying in the big category. However, retail investors should be cautious when applying in the small category, as the chances of allotment are relatively low. It is recommended to avoid the small category unless you have sufficient funds to apply in both categories.

Conclusion

Inox India Limited’s upcoming IPO presents an interesting opportunity for investors. With its strong financial performance and attractive valuation, it is worth studying and considering as part of your investment portfolio. Make sure to analyze the company’s base formation, financials, and allocation strategy before making any investment decisions. Good luck!

Disclaimer: The information is only for information purpose only. It is always recommended to consult with certified financial experts before making any investment decisions. Follow busymoneyfreak.com