Cryogenic OGS IPO Opens July 3 with ₹17.76 Crore Fresh Issue at ₹44 to ₹47 Price Band

Cryogenic OGS Limited, a reputed player in India’s engineering and equipment manufacturing sector, is launching its initial public offering (IPO) to raise ₹17.76 crore via a fully fresh issue of 37.80 lakh equity shares. The proceeds from this IPO are targeted to support manufacturing expansion, working capital needs, and general corporate purposes.

The subscription period for the Cryogenic OGS IPO begins on July 3, 2025, and closes on July 7, 2025, offering investors an opportunity to participate in the company’s ambitious growth plans and listing on the BSE SME platform.

The price band is set between ₹44 and ₹47 per share, a range designed to attract investors while recognising the company’s financial growth and market demand.

Key Dates and Listing Details

The allotment of shares is expected to be finalised around Tuesday, July 8, 2025. The tentative listing date is set for Thursday, July 10, 2025, on the BSE SME exchange. This timeline gives investors a clear schedule to plan for allotment status checks and trading strategies on listing day.

Lot Size and Minimum Investment

The lot size is 3,000 shares per lot. For retail investors, the minimum application is 2 lots (6,000 shares), amounting to an investment of ₹2,82,000 at the upper end of the price band. High-Net-Worth Individuals (HNIs) must apply for a minimum of 3 lots (9,000 shares), which requires ₹4,23,000.

These lot sizes are typical of SME IPOs in India, designed to ensure serious participation from investors who are willing to make substantial commitments.

Lead Manager, Registrar, and Market Maker

The IPO is managed by Beeline Capital Advisors Private Limited, serving as the Book Running Lead Manager (BRLM). The registrar is MUFG Intime India Private Limited (formerly Link Intime India Private Limited), responsible for the allotment and refund process. Spread X Securities Private Limited is the Market Maker, tasked with providing liquidity post-listing on the SME exchange.

These established intermediaries add a level of credibility and regulatory assurance to the issue.

Business Overview and Operations

Cryogenic OGS Limited is known for its motto: where engineering excellence meets innovation. The company specialises in manufacturing high-quality equipment for diverse industries such as oil and gas, petrochemicals, chemicals, and liquor.

Its products serve a wide range of clients, including terminal automation companies in India and firms among the top 500 companies in the Indian economy. The company's reputation rests on its customised engineering solutions, meeting rigorous standards of quality, performance, and reliability.

Cryogenic OGS focuses on the design and production of systems for measurement and filtration, catering to the critical needs of fluid industries. This specialisation helps the company carve out a niche market, with opportunities for domestic and export growth.

Promoter Background and Experience

The company is promoted by Mr. Nilesh Natvarlal Patel, Mrs. Kiranben Patel, and Mr. Dhairya Patel.

• Mr. Nilesh Patel is a first-generation entrepreneur with over 22 years of experience in the oil and gas sector, specialising in designing and manufacturing filtration and metering equipment.

• Mrs. Kiranben Patel brings over 13 years of experience in human resources and logistics management, ensuring smooth operations and strategic planning.

Their combined experience offers a solid foundation for the company’s growth, strategic vision, and operational management.

Financial Performance and Growth Trajectory

Cryogenic OGS has shown steady financial growth over the past three years.

• Revenues from operations for the fiscals ending March 31, 2025, 2024, and 2023 were ₹3,379.14 lakh, ₹2,567.36 lakh, and ₹2,270.92 lakh, respectively.

• EBITDA improved from ₹633.55 lakh in FY23 to ₹780.54 lakh in FY24, and ₹884.83 lakh in FY25.

• Profit After Tax (PAT) rose from ₹407.65 lakh in FY23 to ₹534.50 lakh in FY24, and ₹612.26 lakh in FY25.

This consistent growth underscores strong demand, operational efficiency, and the company’s ability to scale its production to meet market requirements.

Valuation Metrics and Industry Comparison

The company’s valuation ratios indicate that while it is reasonably priced, there are risks typical of SME investments.

• Pre-issue EPS: ₹5.83

• Post-issue EPS: ₹4.29 for FY24

• Pre-issue P/E ratio: 8.06x

• Post-issue P/E ratio: 10.96x

• Industry P/E ratio: 26.00x

Although the post-issue P/E ratio is below the industry average, which can signal value for long-term investors, the market’s risk perception for SMEs must be considered.

Profitability metrics highlight operational strength:

• Return on Capital Employed (ROCE): 28.93%

• Return on Equity (ROE): 23.62%

• Return on Net Worth (RoNW): 21.12%

These solid ratios reflect efficient capital use, healthy margins, and potential for sustained growth.

Grey Market Premium (GMP) and Investor Sentiment

The Grey Market Premium (GMP) for Cryogenic OGS IPO stands at ₹17, which, at the upper price band of ₹47, indicates a potential listing gain of around 36.17%.

While the GMP is informal and unregulated, it often reflects market sentiment and demand expectations ahead of listing. In this case, the GMP suggests investor interest, though investors must be cautious as GMP levels can fluctuate before the listing.

Investor Considerations

Potential investors should evaluate the IPO with a balanced view:

• Positive factors include strong revenue and profit growth, experienced promoters, solid industry demand, and a healthy GMP suggesting listing gains.

• Risks include the SME nature of the listing, high minimum investment requirements, and sector-specific demand cycles.

• The valuation, while reasonable, requires investors to have risk tolerance, particularly given the volatile SME segment.

For retail investors, the large minimum investment of ₹2.82 lakh is a significant consideration, effectively making it more attractive to HNIs and sophisticated investors.

Conclusion

Cryogenic OGS Limited’s IPO offers an opportunity to invest in a niche engineering firm with proven growth, strong margins, and clear industry demand. The GMP of ₹17 indicates potential listing gains, which may attract risk-tolerant investors.

Given the company’s steady financial performance, experienced management, and specialised offerings, the IPO may appeal to long-term investors looking for exposure to India’s industrial equipment manufacturing sector.

However, the high minimum application size and SME listing risks mean it is best suited for investors comfortable with higher risk.

Analysts generally recommend that risk-taking investors can consider applying for potential listing gains, while more conservative investors may choose to wait and watch the post-listing performance.

As the IPO opens on July 3, 2025, and closes on July 7, 2025, investors have time to review its price band, financial fundamentals, and market conditions before deciding.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

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