The much-awaited initial public offering (IPO) of Cryogenic OGS Limited opened for subscription today, marking a significant milestone for the company as it seeks to raise funds to fuel its growth plans, expand manufacturing capabilities, and strengthen its balance sheet. Investors and market watchers are keenly observing this IPO, given the company’s strong niche positioning in cryogenic engineering and its role in India’s growing industrial gases and energy infrastructure market.
About Cryogenic OGS Limited
Cryogenic OGS Limited is a leading player in designing, manufacturing, and supplying cryogenic storage and distribution solutions, focusing on:
- Liquid oxygen, nitrogen, and argon tanks
- Cryogenic road tankers
- Vaporizers and process equipment
- Turnkey integrated solutions for medical oxygen and industrial gas supply
Founded over two decades ago, the company has emerged as a trusted partner to leading steel plants, refineries, hospitals, energy companies, and industrial gas giants in India and overseas.
IPO Details
| Particulars | Details |
|---|---|
| Issue Size | ₹225 crore |
| Price Band | ₹375 – ₹390 per share |
| Issue Type | Fresh issue of equity shares |
| Face Value | ₹10 per share |
| Lot Size | 38 shares |
| Subscription Period | Opens: July 3, 2025; Closes: July 5, 2025 |
| Minimum Investment | ₹14,250 |
| Listing Exchanges | BSE, NSE |
| Lead Managers | Axis Capital, ICICI Securities |
| Registrar | Link Intime India Pvt Ltd |
| Expected Listing Date | July 10, 2025 |
Objectives Of The IPO
Cryogenic OGS aims to utilise net proceeds from this public offer to:
- Expand manufacturing capacity at its Gujarat and Tamil Nadu facilities to meet rising demand for cryogenic storage and transport systems.
- Repay outstanding debts, improving its leverage ratios and freeing up cash flows for operations.
- Fund research and development for innovative applications in LNG storage, hydrogen storage, and integrated medical gas solutions.
- Strengthen working capital requirements for larger projects in pipeline.
Financial Performance Snapshot
Cryogenic OGS has shown consistent growth despite sectoral volatility. Key financial highlights include:
| Metric | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | ₹280 crore | ₹365 crore | ₹420 crore |
| EBITDA | ₹48 crore | ₹67 crore | ₹80 crore |
| Net Profit | ₹23 crore | ₹31 crore | ₹38 crore |
| EBITDA Margin | 17.1% | 18.4% | 19.0% |
| Debt-to-Equity Ratio | 0.78 | 0.65 | 0.51 |
Analysts note Cryogenic OGS’s prudent financial management, rising profitability, and consistent order book growth across energy, steel, and medical oxygen sectors.
Order Book And Growth Outlook
The company currently has an order book exceeding ₹750 crore, to be executed over the next 18 months. This includes:
- Expansion projects for large steel plants integrating liquid oxygen supply.
- Cryogenic tankers and storage systems for LNG and industrial gases players.
- Medical oxygen systems for upcoming multispeciality hospitals across India.
With the Indian government’s increasing push for domestic LNG infrastructure and medical oxygen supply resilience post-COVID, Cryogenic OGS is poised to benefit from sector tailwinds.
Competitive Strengths
- Market Leadership In Cryogenic Solutions Cryogenic OGS holds over 25% market share in cryogenic storage systems in India, with long-term supply relationships with Linde India, INOX Air Products, and Air Liquide.
- Strong Manufacturing Capabilities Its integrated plants in Gujarat and Tamil Nadu enable design-to-delivery under one roof, enhancing cost efficiency and turnaround time.
- Diversified Customer Base The company serves energy, metals, healthcare, chemicals, and R&D sectors, ensuring de-risked revenue streams.
- R&D-Driven Product Portfolio Ongoing innovations in small-scale LNG storage, microbulk tanks for hospitals, and hydrogen storage tanks position Cryogenic OGS as a future-ready player.
Risks To Consider
While the growth prospects remain strong, potential investors should evaluate key risks:
- Raw material price volatility, especially stainless steel and nickel alloy costs, affecting margins.
- Order execution delays due to supply chain disruptions or project clearances.
- Intense competition from global and domestic players like INOX CVA, VRV Asia, and other local manufacturers.
- Dependence on few large clients contributing a significant portion of revenue.
Valuation Insights
At the upper price band of ₹390 per share, Cryogenic OGS is valued at:
- Price-to-Earnings (P/E): ~28x FY24 earnings
- Price-to-Sales (P/S): ~2.1x FY24 revenue
Compared to listed peers in the industrial gas equipment manufacturing space, the valuation is considered fair, factoring its market leadership, profitability growth, and order pipeline strength.
Investor Sentiment And Analyst Views
Market analysts tracking the IPO believe:
“Cryogenic OGS offers a compelling combination of strong order book visibility, improving profitability, and leadership in an essential infrastructure segment. Investors with a medium to long-term horizon may find it an attractive opportunity to gain exposure to India’s growing cryogenic and LNG infrastructure build-out.”
However, they also caution that near-term listing gains will depend on market sentiment, subscription levels from institutional and retail investors, and broader macroeconomic cues.
Subscription Status On Day 1
Early reports indicate the IPO has received a positive response:
| Investor Category | Subscription (till 2 PM, Day 1) |
|---|---|
| Retail Investors | 1.23x |
| Qualified Institutional Buyers (QIB) | 0.45x |
| Non-Institutional Investors (NII) | 0.82x |
| Overall Subscription | 0.94x |
The subscription momentum is expected to pick up over the next two days as institutional and HNI investors place bids closer to the closing date.
Conclusion: Should You Subscribe?
Cryogenic OGS Limited’s IPO arrives at an opportune time when India is witnessing rapid growth in industrial gases, LNG, and medical oxygen infrastructure. Its robust financials, diversified product portfolio, and leadership in cryogenic engineering make it a promising candidate for medium to long-term wealth creation.
Prospective investors should, however, consider:
- Their risk appetite for capital goods and engineering sector stocks.
- Long-term growth prospects vis-à-vis current valuation multiples.
- Portfolio diversification needs before investing.
Disclaimer: This article is for informational purposes only. It does not constitute investment advice. Please consult your financial advisor or a SEBI-registered investment professional before making any investment decisions related to IPOs or secondary market investments.
