INOXCVA IPO Expected Before Month End, Says Group CEO Siddharth Jain

The promoters will offload 25% equity in the offer for sale.

<div class="paragraphs"><p>An LNG Cylinder manufactured for long haul trucks and buses at the Baroda Plant of INOXCVA (Source: BQ Prime/NDTV Profit)</p></div>
An LNG Cylinder manufactured for long haul trucks and buses at the Baroda Plant of INOXCVA (Source: BQ Prime/NDTV Profit)

The initial public offer of India's largest cryogenic equipment manufacturer, INOXCVA, is expected to hit the market before the month ends, said Siddharth Jain, group chief executive officer of the company.

The promoters will dilute 25% of their equity in the offer-for-sale that the company expects before the month ends, after the company's draft red herring prospectus got clearance from the Securities and Exchange Board of India on Tuesday.

"We plan to complete the IPO before the end of this month if the DRHP gets SEBI's clearance," Jain told reporters in a video conference call at their manufacturing plant in Vadodara.

Promoters Pawan Kumar Jain, Nayantara Jain, Siddharth Jain and Ishita Jain, along with four other promoters, will offer around 2.21 crore shares for sale during the IPO.

Explaining the rationale behind the IPO when the company is already cash rich, Jain said the purpose is not to raise funds but to list and increase the visibility of the company globally.

INOXCVA earns 45% of its revenue from exports and has some top names in the industry, globally, as its clients across industrial gas, foods and beverages, LNG/CNG and Cryo Scientific.

At present, INOXCVA manufactures cryogenic tankers, containers and cylinders of various sizes to transport and store the entire gaseous value chain, including helium, hydrogen, nitrogen, oxygen, argon, carbon dioxide, nitric oxide, LNG, and ethylene.

Cryogenic refers to containing any product below minus 100 degrees Celsius.

The company supplied medical oxygen on a mass scale during Covid to meet shortages by converting industrial gases to medical oxygen. Presently, it has three operating plants, one each in Baroda, Silvasa and Kandla. A new manufacturing plant is coming up in Savali, Gujarat.

Jain did not disclose the total amount that the company will raise through the OFS, as the anchor investment and IPO pricing are still to be decided.