Cryogenic OGS Limited is a specialist in manufacturing high-quality equipment for industries such as oil and gas, petrochemicals, chemicals, and liquor. The company is known for engineering excellence, custom solutions, and a solid reputation among top-tier Indian enterprises, including terminal automation companies and several of the top 500 firms in India.

Company Overview

Core Business:

• Designing and manufacturing filtering, metering, and measurement equipment.

• Serving critical industries with custom-engineered solutions.

• Trusted by leading oil and gas firms and industrial conglomerates.

Key Strengths:

• Integrated production capabilities.

• Strong reputation for quality and precision.

• Experienced in serving complex industrial requirements.

Promoters and Management

• Mr. Nilesh Natvarlal Patel: Over 22 years of experience in oil and gas industry equipment design and production.

• Mrs. Kiranben Patel: Over 13 years in human resources and logistics management.

• Mr. Dhairya Patel: Part of the family-run team with industry knowledge.

The first-generation entrepreneurs emphasize innovation, quality, and reliability.

IPO Details

• IPO Type: Book Built Issue (100% Fresh Issue)

• Issue Size: ₹17.76 Crores (37.80 lakh shares)

• Price Band: ₹44 to ₹47 per share

• Market Capitalisation (at ₹47): ₹67.11 Crores

Important Dates:

• IPO Opens: July 03, 2025

• IPO Closes: July 07, 2025

• Allotment: Expected July 08, 2025

• Listing on BSE SME: Tentative July 10, 2025

Investment Terms

• Lot Size: 3,000 shares

• Retail Minimum Investment: ₹2,82,000 (6,000 shares, 2 lots)

• HNI Minimum Investment: 3 lots (9,000 shares) for ₹4,23,000

Note: The large lot size targets serious investors, limiting casual retail participation.

IPO Handling Parties

• Book Running Lead Manager: Beeline Capital Advisors Private Limited

• Registrar: MUFG Intime India Private Limited (formerly Link Intime India)

• Market Maker: Spread X Securities Private Limited

These partners bring credibility and efficiency to the IPO process.

Financial Performance

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:

• FY23: ₹407.65 Lakh

• FY24: ₹534.50 Lakh

• FY25: ₹612.26 Lakh

Comment: Consistent revenue and profit growth highlight strong demand and operational performance.

Valuation Metrics

• Pre-issue EPS (FY24): ₹5.83

• Post-issue EPS: ₹4.29

• Pre-issue P/E Ratio: 8.06x

• Post-issue P/E Ratio: 10.96x

• Industry P/E Benchmark: 26x

Return Ratios (FY24):

• ROCE: 28.93%

• ROE: 23.62%

• RoNW: 21.12%

These return ratios suggest healthy capital efficiency, but valuation remains fully priced compared to growth stage.

Grey Market Premium (GMP)

• Current GMP: ₹13 per share

• Implied Listing Gain: ~18.59%

Investor Note:

• GMP is informal and not officially traded.

• Reflects strong market interest and positive sentiment.

• Suggests good listing potential for short-term traders.

Competitive Advantages

• Specialized engineering for demanding industries.

• Long-standing client relationships with large industrial firms.

• Custom design capability ensures niche market leadership.

• Experienced promoters with deep industry knowledge.

Risks and Challenges

• SME IPO segment generally less liquid post-listing.

• High minimum retail investment limits accessibility.

• Valuation is fully priced, reducing margin of safety for long-term investors.

• Market cyclicality in oil and gas and chemicals could impact demand.

Analyst Recommendation

Despite solid fundamentals and strong return ratios, the IPO pricing is full with limited margin for safety over the long term. However, the GMP of ₹13 indicates potential listing gains of ~18.59%, making it attractive for risk-tolerant investors seeking short-term listing gains.

Recommendation:
✅ Risky Investors: Apply for potential listing gains.
⚠️ Conservative Investors: Avoid due to full valuation and SME liquidity risks.

Conclusion

Cryogenic OGS Limited IPO offers investors a chance to buy into a niche engineering company with proven growth and strong industry reputation.

Key Positives:

• Steady revenue and profit growth.

• Attractive return ratios (ROCE ~29%).

• Low post-issue P/E vs industry benchmark.

• GMP suggests listing gain potential.

Key Concerns:

• High minimum retail ticket size.

• SME segment volatility and liquidity constraints.

• Fully priced issue with long-term margin of safety concerns.

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  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.

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

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