Cryogenic OGS Limited, a company recognized for its engineering precision and industry innovation, has launched its SME IPO on July 3, 2025, with a total book-built issue size of ₹17.76 Crores. The IPO comprises a complete fresh issue of 37.80 lakh equity shares, with no Offer for Sale (OFS), aimed at supporting working capital and general corporate needs.

The price band for the IPO is fixed at ₹44 to ₹47 per share, with each lot consisting of 3,000 shares, implying a minimum investment of ₹1,41,000 for retail investors. The IPO closes on July 7, 2025, and shares are scheduled to be listed on the BSE SME platform on July 10, 2025.

Business Overview:

Cryogenic OGS Limited operates in the niche of manufacturing customized engineering equipment serving diverse industries such as oil and gas, petrochemicals, chemicals, and liquor. The firm provides measurement and filtration systems and counts among its clients some of the top 500 companies in India, including notable terminal automation companies.

Promoted by Mr. Nilesh Natvarlal Patel, Mrs. Kiranben Patel, and Mr. Dhairya Patel, the company brings over two decades of domain experience, especially in designing and producing metering and filtering equipment. Mr. Patel has more than 22 years of experience in oil and gas, while Mrs. Patel holds over 13 years of experience in HR and logistics.

Financial Performance:

Cryogenic OGS has demonstrated steady financial growth across the last three fiscal years:

These numbers reflect consistent top-line and bottom-line growth, suggesting sound operations and increasing efficiency. The company’s pre-issue EPS is ₹5.83, while the post-issue EPS is estimated at ₹4.29.

Valuation Metrics:

• Pre-Issue P/E: 8.06x

• Post-Issue P/E: 10.96x

• Industry P/E: 26.00x

• ROCE (FY24): 28.93%

• ROE (FY24): 23.62%

• RoNW: 21.12%

These metrics place Cryogenic OGS in a fairly valued zone, with room for listing gains and possible long-term upside for stable investors.

Grey Market Premium (GMP):

As of June 30, 2025, the GMP for Cryogenic OGS IPO is ₹13 per share, projecting an expected listing price of ₹60, which implies a listing gain of around 18.59%. Although grey market activities are unregulated and not always reliable, this early signal indicates positive market sentiment.

IPO Subscription Status (As of July 4, 11:00 AM):

The IPO has received an enthusiastic response with a subscription of 33.47 times by the second day of bidding. This oversubscription reflects robust demand from both retail and institutional investors.

Anchor Investment:

Cryogenic OGS secured ₹5.04 Crores from Anchor Investors, allocating 10.74 lakh equity shares at the upper price band of ₹47 per share. This early investment provides confidence to retail investors regarding institutional interest in the company.

IPO Objectives:

Cryogenic OGS will utilise the IPO proceeds primarily for:

1. Working Capital Requirements – ₹1,150.00 Lakhs

2. General Corporate Purposes

The focused utilization towards working capital ensures the company can meet expanding operational demands effectively.

Risk Factors:

While Cryogenic OGS appears fundamentally strong, a few risk considerations include:

• Dependence on a few industries such as oil and chemicals may create sectoral vulnerability.

• Being a SME IPO, liquidity in post-listing trades might be limited.

• Price volatility on listing due to speculative activities based on GMP should be expected.

Conclusion:

Cryogenic OGS presents itself as a robust SME IPO opportunity for investors with an appetite for moderate risk and short-term gains. The strong demand in early subscription, decent GMP, and consistent financial performance make it attractive for listing gains. While the valuation is considered fair, the lack of significant diversification in customer base and SME classification warrants caution for long-term holding.

Recommendation:
Risk-Tolerant Investors May Apply for potential listing gains.

Disclaimer:

The information provided here is for educational and informational purposes only and does not constitute financial advice or a recommendation to buy/sell securities. Investment in the securities market is subject to market risks. Read all related documents carefully before investing. Seek advice from your financial advisor before making any investment decision.

The Upcoming IPOs in this week and coming weeks are Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Crizac, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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