Unlock Growth: A Deep Dive into the Cryogenic OGS Initial Public Offering
In the dynamic world of capital markets, an Initial Public Offering (IPO) always captures investor attention. It's a chance to invest in companies poised for growth, and understanding the nuances is key to making informed decisions. Today, we turn our spotlight to Cryogenic OGS Limited, a specialist in industrial measurement and filtration equipment, as it prepares to embark on its journey as a publicly listed entity.
Let's unravel the details of this upcoming SME IPO, examining its business strengths, financial health, and what it brings to the market.
About Cryogenic OGS Limited: Engineering Precision for Industries
Established in September 1997, Cryogenic OGS Limited specializes in the manufacturing and assembly of high-quality measurement and filtration equipment. Their sophisticated solutions cater to critical sectors like oil, gas, chemicals, and other fluid-related industries. The company's core strength lies in providing innovative and tailored services, ensuring precise measurement and efficient system operations for their diverse clientele.
With a manufacturing unit strategically located in Vadodara, Gujarat, spanning 8300 square meters, Cryogenic OGS demonstrates a commitment to integrated design, process engineering, and manufacturing capabilities, including fabrication, assembly, and rigorous testing.
Key Product Offerings:
- Basket Strainers: Essential for removing debris, safeguarding downstream equipment.
- Air Eliminators: Crucial for maintaining accurate metering and system efficiency by purging air from liquid systems.
- Prover Tanks: Utilized for calibrating flow meters, ensuring measurement precision across industrial applications.
- Additive Dosing Skids: Flexible systems for continuous, automated dosing into main product lines.
- Truck Loading/Tank Wagon Loading Skids: Integrated solutions for measurement, control, and filtration in liquid and gas transfer.
Understanding the IPO Landscape
The Cryogenic OGS IPO is a book-built issue, entirely composed of a fresh issuance of shares. Here's a quick overview of its structure:
| IPO Aspect | Details |
|---|---|
| Issue Type | SME Book Built Issue |
| Total Issue Size | 37,80,000 Equity Shares (aggregating up to ₹17.77 Cr) |
| Issue Price Band | ₹44 to ₹47 per share |
| Face Value | ₹10 per share |
| Listing At | BSE SME |
| Market Capitalization | ₹67.12 Cr (Post-IPO) |
Important Dates to Mark:
Staying on top of the IPO timeline is crucial for potential investors. Here's a tentative schedule:
Lot Size and Investment:
Investors can apply for shares in multiples of 3,000 shares. The minimum and maximum investment details for various investor categories are outlined below:
| Investor Category | Minimum Lot Size | Minimum Shares | Minimum Amount (Approx) |
|---|---|---|---|
| Retail Investor | 1 Lot | 3,000 shares | ₹1,41,000 |
| HNI (High Net Worth Individual) | 2 Lots | 6,000 shares | ₹2,82,000 |
It is often advised for investors to bid at the cut-off price to potentially mitigate risks associated with oversubscription.
Anchor Investor Details:
A significant portion of the IPO is allocated to Anchor Investors, signaling institutional confidence in the company. Cryogenic OGS IPO successfully raised ₹5.05 crore from anchor investors on July 2, 2025.
Allocation Breakdown:
The shares offered are distributed across various investor categories as follows:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker | 1,89,000 | 5.00% |
| Qualified Institutional Buyers (QIB) | 17,91,000 | 47.38% |
| - Anchor Investors | 10,74,000 | 28.41% |
| - QIB (Excluding Anchor) | 7,17,000 | 18.97% |
| Non-Institutional Investors (NII/HNI) | 5,40,000 | 14.29% |
| Retail Individual Investors (RII) | 12,60,000 | 33.33% |
| Total Shares Offered | 37,80,000 | 100.00% |
Financial Health and Performance Analysis
A company's financial performance is a cornerstone for investment analysis. Cryogenic OGS Limited has demonstrated consistent growth in its key financial metrics.
Snapshot of Financial Trends (All figures in ₹ Crores):
| Financial Metric | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|
| Assets | 33.85 | 28.35 | 24.00 |
| Revenue | 33.79 | 25.67 | 22.71 |
| Profit After Tax (PAT) | 6.12 | 5.35 | 4.08 |
| EBITDA | 7.96 | 6.39 | 5.65 |
| Net Worth | 28.99 | 22.86 | 17.52 |
| Total Borrowing | 0.00 | 0.00 | 0.00 |
The company shows a healthy upward trend with revenue increasing by 32% and PAT rising by 15% between FY2024 and FY2025. Notably, the company maintains zero total borrowing, indicating a strong and debt-free balance sheet.
Key Performance Indicators (KPIs) as of March 31, 2025:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 23.62% |
| Return on Capital Employed (ROCE) | 28.93% |
| Return on Net Worth (RoNW) | 21.12% |
| Profit After Tax (PAT) Margin | 18.61% |
| EBITDA Margin | 24.20% |
| Price to Book Value | 1.70 |
| Earnings Per Share (Pre IPO) | ₹5.83 |
| P/E Ratio (Pre IPO) | 8.06x |
| Earnings Per Share (Post IPO) | ₹4.29 |
| P/E Ratio (Post IPO) | 10.96x |
Promoters and Shareholding
The leadership of Cryogenic OGS Limited is driven by its dedicated promoters:
- Mr. Nilesh Natvarlal Patel
- Mrs. Kiranben Nileshbhai Patel
- Mr. Dhairya Patel
Before the IPO, the promoters held 100% of the company's shares. Post-issue, with the fresh issuance of shares, their holding will be approximately 73.53%, reflecting a dilution aimed at raising capital for growth.
Purpose of the Public Offering
Cryogenic OGS Limited intends to utilize the net proceeds from this IPO primarily for two key objectives:
- To address the company's working capital requirements (₹11.50 crores).
- For general corporate purposes and covering public issue expenses.
This fresh capital infusion is expected to support the company's operational scaling and strategic initiatives.
Strategic Analysis: SWOT Breakdown
A comprehensive understanding of a company includes looking at its internal strengths and weaknesses, alongside external opportunities and threats.
Strengths:
- Robust Technology: Possesses strong and unique product technology in a specialized niche.
- Experienced Leadership: Benefits from seasoned promoters, experienced management, and a well-trained workforce.
- Commitment to Quality: Demonstrated consistency in maintaining high quality and service standards.
- Solid Partnerships: Established and reliable relationships with key suppliers.
- Stable Client Base: Enjoys a stable and recurring customer base in its target industries.
- Debt-Free Status: Strong financial health with zero total borrowings as of the latest financial period.
- Growth Trajectory: Consistent growth in revenue and profitability over recent financial years.
Weaknesses:
- SME Segment Risks: Being an SME IPO, it may face higher liquidity risks and attract a specific investor profile compared to mainboard listings.
- Sector Concentration: Primary focus on specific industrial sectors (oil, gas, chemicals) could pose concentration risks if these sectors face downturns.
- Scale: As a smaller entity, it might face challenges in competing with larger, more established players in terms of economies of scale or extensive market reach.
Opportunities:
- Industry Expansion: Potential for growth driven by increasing demand in India's industrial and energy sectors.
- Product Diversification: Opportunities to expand its product portfolio or adapt its technology for new applications and industries.
- Market Penetration: Scope to deepen market presence within existing sectors or explore new geographical regions.
- Infrastructure Development: Growing infrastructure and industrial projects in India could fuel demand for specialized equipment.
Threats:
- Economic Volatility: Industrial demand can be highly sensitive to broader economic fluctuations.
- Raw Material Price Fluctuations: Vulnerability to changes in the cost of raw materials required for manufacturing.
- Intense Competition: Risk from existing competitors and potential new entrants in its niche market.
- Regulatory Changes: Evolving environmental regulations or industry standards could impact product design and operational costs.
Key Stakeholders and Application Process
To ensure a smooth IPO process, various entities play crucial roles:
- Book-Running Lead Manager: Beeline Capital Advisors Pvt Ltd.
- IPO Registrar: MUFG Intime India Private Limited (Link Intime) - responsible for allotment, refunds, and share credit.
- Market Maker: Spread X Securities Private Limited - supports liquidity post-listing.
How to Participate:
For investors interested in participating, the process is streamlined:
- You can apply online via UPI (Unified Payments Interface) through your stockbroker's platform (e.g., Zerodha Console, Upstox, etc.).
- Alternatively, you can use the ASBA (Application Supported by Blocked Amount) facility available through your bank's net banking portal.
Final Thoughts for Potential Investors
Cryogenic OGS Limited presents an opportunity to invest in a niche player within the essential industrial equipment sector. Its consistent financial performance, debt-free status, and experienced management team are noteworthy strengths. The IPO aims to bolster its working capital, positioning the company for continued operational efficiency and future growth.
As with any investment, it's crucial to consider all aspects, including the sector-specific risks and the characteristics of an SME listing. Potential investors should conduct their own due diligence, assess the company's long-term prospects against their investment goals, and consider consulting with a financial advisor.
Company Contact Information:
- Address: 60, 61, 62, 63 POR Industrial Park, Behind Sahyog Hotel, POR, Vadodara, Gujarat, 391243
- Phone: +91 98988 6713
- Email: cs@cryogenicogs.com
- Website: https://www.cryogenicogs.com/