Cryogenic OGS Limited launches its ₹17.76 Crore IPO via a fresh issue of 37.80 lakh shares. The subscription period runs from July 03, 2025 to July 07, 2025.

Allotment is likely to be finalised by July 08, 2025, with the company's shares planned for listing on the BSE SME platform on July 10, 2025.

The price band is set at ₹44 to ₹47 per equity share, translating to a market capitalisation of around ₹67.11 Crores at the upper end.

Lot size is 3,000 shares for retail investors, requiring a minimum investment of ₹1,41,000. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (6,000 shares) amounting to ₹2,82,000.

Beeline Capital Advisors Private Limited is the book running lead manager, MUFG Intime India Private Limited is the registrar, and Spread X Securities Private Limited acts as market maker.

Company Overview and Business Model

Cryogenic OGS Limited combines engineering excellence with innovation, manufacturing high-quality equipment for multiple industries including:

• Oil and gas

• Petrochemicals

• Chemicals

• Liquor

The company is known for delivering tailored solutions and serves top-tier clients, including leading terminal automation companies and major enterprises among India’s top 500 companies.

They specialise in manufacturing metering, filtering, and measurement systems designed for critical industrial applications.

Promoters and Management Strength

The company is promoted by:

• Mr. Nilesh Natvarlal Patel – over 22 years of experience in oil and gas equipment design and production

• Mrs. Kiranben Patel – over 13 years of experience in HR management and logistics

• Mr. Dhairya Patel – active in managing operations

The first-generation entrepreneurs bring deep industry expertise and operational focus to ensure consistent growth and reliability.

Financial Performance and Growth Metrics

Cryogenic OGS has delivered steady financial growth over the past three fiscal years:

• Revenue from Operations:

  • FY23: ₹2,270.92 Lakh

  • FY24: ₹2,567.36 Lakh

  • FY25: ₹3,379.14 Lakh

• EBITDA:

  • FY23: ₹633.55 Lakh

  • FY24: ₹780.54 Lakh

  • FY25: ₹884.83 Lakh

• Profit After Tax (PAT):

  • FY23: ₹407.65 Lakh

  • FY24: ₹534.50 Lakh

  • FY25: ₹612.26 Lakh

This trajectory highlights consistent growth, supported by expanding demand for specialised industrial equipment.

Valuation and Key Financial Ratios

The IPO is considered fully priced relative to sector benchmarks:

• Pre-issue EPS (FY24): ₹5.83

• Post-issue EPS (FY24): ₹4.29

• Pre-issue P/E ratio: 8.06x

• Post-issue P/E ratio: 10.96x

• Industry P/E ratio: 26.00x

Profitability metrics demonstrate healthy operational efficiency:

• ROCE (FY24): 28.93 percent

• ROE (FY24): 23.62 percent

• RoNW: 21.12 percent

These figures underscore efficient use of capital and a strong competitive position.

Grey Market Premium (GMP) Analysis

The Grey Market Premium (GMP) for Cryogenic OGS IPO is currently expected at ₹13.

This indicates potential listing gains of approximately 18.59 percent at the upper price band.

However, investors should note:

• GMP is informal and unregulated

• It depends purely on market demand and supply in an unofficial market

• It does not guarantee post-listing price performance

GMP is shared purely for informational purposes.

Use of IPO Proceeds

The entire issue is fresh, ensuring that proceeds will strengthen the company’s operational capabilities.

Expected uses include:

• Expanding manufacturing capacity

• Investing in new technologies

• Strengthening working capital

• Enhancing market reach

Such initiatives will help Cryogenic OGS scale production and meet growing industry demand.

Competitive Advantages and Market Position

Cryogenic OGS offers clear advantages, including:

• Expertise in precision equipment for critical industries

• Long-standing relationships with top-tier Indian companies

• Proven engineering and design capabilities

• Focus on customised, high-quality solutions

Their strong reputation positions them well to capitalise on infrastructure and industrial growth trends in India.

Risks and Considerations for Investors

Investors should carefully consider potential risks, including:

• Dependence on cyclical demand in oil, gas, and chemicals

• Competition from domestic and international players

• Challenges in maintaining quality at scale

• Need for continuous innovation

These risks highlight the importance of a long-term investment perspective.

Expert Recommendations

Given the steady financial performance, attractive GMP, and sound market position, analysts recommend that risk-tolerant investors consider applying for potential listing gains.

However, conservative investors should weigh sector risks and cyclical exposure before investing.

Conclusion

Cryogenic OGS Limited represents a compelling SME IPO with a clear engineering niche, consistent financial growth, and strong client base.

While short-term GMP signals attractive listing gains for risk-friendly investors, the company’s manufacturing strength and specialised focus offer solid fundamentals for long-term growth in India’s industrial equipment sector.

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  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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