Cryogenic OGS IPO: A Complete Guide for Investors

The Cryogenic OGS IPO is a notable addition to India’s SME market, providing investors with the chance to participate in the growth of a company specializing in industrial measurement and filtration equipment for the oil, gas, and chemicals sectors.

Here’s an in-depth, easy-to-understand overview of everything you need to know about the IPO, the company’s business model, financial performance, competitive strengths, and investment rationale.

IPO Structure and Key Details

Cryogenic OGS Limited is coming out with an entirely fresh issue to raise ₹17.77 crore through the bookbuilding process.

Key Highlights:

• IPO Type: Bookbuilding (Fresh Issue)

• Issue Size: 37.80 lakh shares aggregating up to ₹17.77 Cr

• Price Band: ₹44 to ₹47 per share

• Face Value: ₹10 per share

• Listing At: BSE SME platform

• IPO Dates: Opens on 3 July 2025, closes on 7 July 2025

• Tentative Allotment: 8 July 2025

• Tentative Listing Date: 10 July 2025

Important: Investors are advised to bid at the cutoff price to avoid missing out due to oversubscription.

Lot Size and Investment Requirements

Investors must apply in lots of 3,000 shares:

• Retail Minimum Investment: 1 lot (3,000 shares) costing ~₹1,41,000 at the upper band.

• HNI Minimum Investment: 2 lots (6,000 shares) costing ~₹2,82,000.

Tip: Always check final price confirmations and your broker’s platform before placing bids.

Reservation Details

Cryogenic OGS IPO is structured to ensure broad participation:

• QIB (Qualified Institutional Buyers): 47.38% allocation

• NII (Non-Institutional Investors): 14.29% allocation

• Retail Individual Investors: 33.33% allocation

• Market Maker Portion: 5.00%

Anchor Investors:

• Raised ₹5.05 crore from anchor investors on 2 July 2025.

• Anchor lock-in period:

  • 50% shares for 30 days (until 7 August 2025)

  • Remaining 50% for 90 days (until 6 October 2025)

Promoter Background and Shareholding

Cryogenic OGS Limited is promoted by Mr. Nilesh Natvarlal Patel, Mrs. Kiranben Nileshbhai Patel, and Mr. Dhairya Patel.

• Pre-Issue Shareholding: 100% held by promoters.

• Post-Issue Shareholding: Diluted as per the fresh capital raised.

Note: This dilution only affects promoter holdings—not existing public shareholders, since it's a fresh issue.

IPO Objectives: Use of Funds

Cryogenic OGS plans to deploy net proceeds towards:

1. Working Capital Requirements: ₹11.50 crore

2. General Corporate Purposes

3. Public Issue Expenses

This focus on working capital ensures they can expand production, manage raw material cycles, and fulfill more orders effectively.

Company Background

Incorporated in September 1997, Cryogenic OGS Limited is based in Vadodara, Gujarat.

The company manufactures and assembles measurement and filtration equipment used in oil, gas, chemicals, and fluid handling industries.

Their manufacturing facility is spread across 8,300 sq. meters—a testament to their capacity to deliver complex, large-scale projects.

Product Portfolio

Cryogenic OGS offers customized, high-quality industrial solutions. Major products include:

• Basket Strainers: Remove debris from pipelines to protect pumps and valves.

• Air Eliminators: Remove air/gases from liquid systems for accurate metering.

• Prover Tanks: Calibrate flow meters to ensure precise measurement.

• Additive Dosing Skids: Automate additive dosing into product lines.

• Truck Loading / Tank Wagon Loading Skids: For measurement, control, and filtration of liquids and gases.

Key Point: These products are critical to operational safety and efficiency in industries such as oil and gas.

Competitive Strengths

Cryogenic OGS highlights multiple competitive advantages:

• Strong and Unique Product Technology – Custom-designed for customer-specific needs.

• Experienced Promoters and Management – Deep industry knowledge and relationships.

• Consistency in Quality and Service – Proven track record in delivering reliable equipment.

• Established Supplier Relationships – Ensures reliable input costs and quality.

• Stable Customer Base – Repeat clients indicate trust and satisfaction.

Important: In industrial B2B markets, trust and consistency matter as much as pricing.

Manufacturing Capability

The company’s manufacturing unit in Vadodara offers:

• Design and process engineering capabilities.

• Fabrication, assembly, and testing facilities.

• Ability to deliver tailored, innovative solutions.

This integrated approach reduces reliance on third-party vendors, ensuring quality control and timely delivery.

Financial Performance Overview

Cryogenic OGS has demonstrated solid financial growth in recent years.

Financial Summary (₹ Crore)

Highlights:

• Revenue grew 32% YoY (FY24–FY25).

• PAT grew 15% YoY.

• Zero debt—Debt-Free company.

Key Performance Indicators (KPI)

• ROE: 23.62%

• ROCE: 28.93%

• RoNW: 21.12%

• PAT Margin: 18.61%

• EBITDA Margin: 24.20%

• Price-to-Book Value: 1.70

These KPIs show healthy profitability, capital efficiency, and attractive valuation multiples.

Market Opportunity

Cryogenic OGS operates in niche but essential markets:

• Oil and Gas: Demand for safe, accurate, efficient fluid handling is non-negotiable.

• Chemicals and Allied Fluids: Complex processes demand customized solutions.

• Industrial Automation: Need for automated skids and dosing systems rising with process sophistication.

As India’s industrial and energy infrastructure grows, demand for such equipment is set to rise.

Management and Workforce

As of March 2024:

• 23 permanent employees.

• Small, specialized, well-trained team.

• Focus on quality engineering and custom projects rather than mass production.

Risks to Consider

Every IPO has risks:

• Sector Cyclicality: Oil and gas demand can fluctuate.

• Custom Project Sales: Not mass production, so sales can vary by project cycle.

• SME Listing: Less liquid market; higher price volatility possible.

However, debt-free balance sheet, consistent profit growth, and specialized niche mitigate many of these risks.

Objects of the Issue

Detailed fund use plan:

Key Point: Working capital infusion enables inventory management, faster delivery, more projects.

Why Invest in Cryogenic OGS IPO?

• Debt-Free Company – Zero borrowing risk.

• Strong Profitability – High margins, growing profits.

• Specialized Industry Niche – Less competition.

• Proven Product Portfolio – Established customer trust.

• ---

  Disclaimer:
  This article is prepared purely for educational and informational purposes and does not constitute investment advice. Investors are encouraged to perform their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Investing in securities is subject to market risks.

  The Upcoming IPOs in this week and coming weeks are Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Travel Food Services, Cryogenic, Crizac.

  ---

  The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

  ---

  Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

  ---

  Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

  Strategic Use of IPO Funds – Focus on working capital for growth.