Inox Air Products IPO DRHP: 7.72 Crore-Share OFS, Financials, Risks and Tax Guide

Summary: Inox Air Products Limited filed its Draft Red Herring Prospectus with SEBI on 5 October 2026 for a 100% book-built initial public offer comprising only an offer for sale of up to 77,156,663 equity shares of face value ₹1 each. There is no fresh issue, so the company will not receive IPO proceeds; the selling shareholders will receive the offer consideration after offer-related adjustments, while the company’s stated objects are to carry out the OFS and obtain the benefits of listing on NSE and BSE. The draft abridged prospectus describes Inox Air Products as India’s largest integrated industrial, medical, electronic and specialty gases company by FY 2026 revenue, with 22.4% market share according to the cited CRISIL Report, more than 3,000 customers and 57 operating locations across 15 states and one union territory as at 31 March 2026. Restated FY 2026 revenue from operations was ₹3,033.93 crore, EBITDA ₹1,647.79 crore and profit for the year ₹913.87 crore; operating cash flow was ₹1,264.24 crore. Revenue and profit increased over FY 2024–FY 2026, while disclosed adjusted ROCE declined from 30.24% to 24.45%. The DRHP has not yet fixed the price band, offer dates or final offer size in rupees. Investors therefore cannot compute an IPO valuation from the filed draft alone. Key disclosed risks include customer-site dependence, utility availability and cost, end-industry concentration, pricing pressure, execution and capacity-utilisation risks. This article explains the filed offer, financial trends, ASBA/UPI and T+3 mechanics, and post-listing tax treatment without making an Apply, Subscribe or Avoid call.

Inox Air Products IPO: Current DRHP Status

SEBI’s public-issues filing page records the Inox Air Products Limited DRHP on 5 October 2026. The draft abridged prospectus is dated 30 September 2026. Because this is a DRHP-stage issue, the floor price, cap price, offer price, bid/opening and closing dates and rupee size remain blank. Those details are expected only at the later RHP/price-band stage. Any website quoting a definitive issue price or IPO valuation before the issuer and BRLMs formally announce them should not be treated as the offer document.

Who Is Selling Shares

The OFS is spread across promoter and promoter-group selling shareholders. Prodair Corporation proposes to sell up to 38,578,328 shares; INOX Chemicals LLP up to 11,765,280; Siddho Mal Trading LLP up to 11,649,450; Siddhomal Air Products Private Limited up to 14,673,000; and Sitashri Trading and Finance Private Limited up to 490,605 shares. Their disclosed weighted average acquisition costs differ materially, but those historical costs are not the IPO valuation and should not be compared with an unknown offer price as though they were a forecast of listing performance.

OFS means no primary capital enters the company

This distinction is commercially important. In a fresh issue, new shares are issued and proceeds can fund capex, debt reduction, working capital or other stated objects. Here, the DRHP states that the objects are to carry out the OFS and achieve listing benefits. Consequently, the IPO itself does not add fresh cash to Inox Air Products for expansion or deleveraging. The investment analysis should therefore focus on the existing balance sheet, operating cash generation, future internally funded or separately financed capex, and the post-offer ownership structure rather than treating the IPO size as growth capital.

Business Model and Operating Footprint

The draft abridged prospectus describes the company as operating across three business verticals: On-site, Merchant, and Packaged and Specialty Gases. Its portfolio includes oxygen, nitrogen, argon, hydrogen, carbon dioxide, acetylene, helium, silane, ammonia, nitrous oxide, medical oxygen, welding mixtures and specialty gas mixtures. The company served more than 3,000 customers as at 31 March 2026 across steel, oil and gas, chemicals, healthcare and pharmaceuticals, electronics and semiconductors, solar, glass, automotive and other manufacturing sectors.

The On-site business primarily serves large industrial customers requiring continuous and large-scale gas supply. Merchant and Packaged/Specialty Gases address a broader base including manufacturing clusters, MSMEs, fabrication units, healthcare providers and specialty industries. As at 31 March 2026, facilities were spread across 57 locations in 15 states and one union territory. The top five customers contributed 25.94% of FY 2026 revenue from operations and the top ten contributed 31.60%, creating measurable customer concentration despite the broad customer count.

Financial Performance: FY 2024 to FY 2026

Revenue, margins and cash generation

Revenue from operations increased from ₹2,589.94 crore in FY 2024 to ₹3,033.93 crore in FY 2026. That is cumulative growth of about 17.1% over two years, with the DRHP reporting year-on-year growth of 7.72% in FY 2025 and 8.75% in FY 2026. EBITDA rose faster than revenue over the period and the disclosed EBITDA margin improved from 47.99% to 51.29%. Profit for the year rose from ₹765.69 crore to ₹913.87 crore. FY 2026 PAT margin of 28.44% was, however, slightly below FY 2025’s 28.90%.

Operating cash flow improved sharply to ₹1,264.24 crore in FY 2026 from ₹861.49 crore in FY 2025. Investing cash flow remained negative at ₹877.55 crore in FY 2026, consistent with a capital-intensive industrial-gases platform. Total borrowings declined to ₹1,365.65 crore in FY 2026 from ₹1,667.31 crore in FY 2025. The company reports negative net debt because its specified cash, deposits and investments exceed borrowings and lease liabilities under its KPI definition.

Return ratios need context

Adjusted ROCE declined from 30.24% in FY 2024 to 27.58% in FY 2025 and 24.45% in FY 2026 despite higher absolute profit and EBITDA. This does not by itself establish deterioration, because capital employed can rise ahead of capacity utilisation, but it is a trend that should be read with capex, commissioned capacity and utilisation. On-site operational capacity increased from 12,280 tonnes per day in FY 2024 to 16,074 TPD in FY 2026; merchant capacity increased from 4,425 TPD to 5,106 TPD.

Key Risks Disclosed in the DRHP

The offer document identifies risks rather than merely presenting growth metrics. A significant number of facilities operate at customer sites, making the business dependent on continued operation of those sites and customer relationships. Manufacturing requires adequate and cost-effective power, fuel and water; disruption or inability to pass through higher costs can affect margins. Steel, healthcare/pharmaceutical and automotive end-use industries together contributed 57.26% of FY 2026 revenue from operations, so demand weakness in these sectors can affect volumes.

The company also identifies competitive pricing pressure, growth-strategy execution, transportation and specialised-asset risks, under-utilisation or delays in capacity expansion, and public-sector tender/payment risks. These factors should be read with the company’s high fixed-asset and infrastructure intensity. A high EBITDA margin does not eliminate operating leverage or customer/utility dependence.

Offer Valuation Cannot Yet Be Calculated

The DRHP leaves the floor price, cap price and offer price blank. Therefore, price-to-earnings, price-to-book, implied market capitalisation, OFS value and comparison with listed peers cannot be responsibly calculated at this stage. FY 2026 diluted EPS disclosed after retrospective adjustment for the share split and 4:1 bonus issue is ₹17.68 and NAV per share is ₹140.41, but applying an arbitrary multiple to those numbers would create an unofficial valuation. A valuation section should be updated only after the formal price band and RHP are available.

The document also notes that this is the first public issue after the company’s earlier equity shares were voluntarily delisted from several exchanges between 1999 and 2000. There is currently no formal market for the shares, and the DRHP expressly cautions that the offer price should not be treated as indicative of the post-listing market price.

Application, Allotment and Listing Mechanics

Public issues follow the Application Supported by Blocked Amount mechanism. TaxGuru’s IPO offer-structure and procedure explainer explains that applicants use ASBA, with eligible individual applications also capable of using the UPI-based ASBA process within the applicable limit. Funds are blocked rather than immediately transferred to the issuer/selling shareholders.

SEBI’s T+3 framework requires listing within three working days after issue closure for public issues covered by the mandatory timeline. TaxGuru’s reproduction of SEBI Circular dated 9 August 2023 on T+3 listing sets out application, validation, mandate and allotment timelines. Inox Air Products’ final dates will be known only when the offer proceeds beyond DRHP stage.

The draft identifies MUFG Intime India Private Limited as registrar. Investors should use the final RHP/prospectus, exchange notices and registrar systems for allotment information. Unofficial grey-market premium is neither an offer-document metric nor an exchange-discovered price; it is therefore omitted here.

Tax Implications for IPO Investors

Capital gains after listing

For tax period 2026-27, TaxGuru’s Income-tax Act, 2025 capital-gains guide explains that STT-paid short-term gains on listed equity are generally taxed at 20%, while qualifying long-term gains are generally taxed at 12.5%, subject to the statutory threshold and conditions. Listed equity ordinarily becomes long-term after the applicable 12-month holding period. The precise provision, taxpayer status, STT conditions and exemptions must be checked at the time of sale.

IPO acquisition does not ordinarily suffer purchase-side STT in the same manner as an exchange delivery purchase. TaxGuru’s guide to taxation of securities notes the notified exceptions to the acquisition-side STT condition for genuine transactions such as IPO acquisitions when applying the listed-equity LTCG framework. STT is relevant on subsequent exchange sale in accordance with the Securities Transaction Tax law.

Losses and dividends

A capital loss after listing is governed by the capital-loss set-off and carry-forward rules; short-term and long-term losses are not interchangeable without statutory conditions, and timely return filing is important for carry-forward. Dividend income, if the company declares dividends after listing, is separate from capital gains and is generally taxable in the shareholder’s hands under the applicable income-tax provisions, with withholding rules depending on resident/non-resident status.

TaxGuru’s current dividend-tax guide explains resident and non-resident dividend treatment and withholding concepts. Dividend yield should not be assumed from historical distributions unless the company has declared a dividend and the investor owns shares on the relevant record date.

NRI investors

NRI applications and post-listing holdings must comply with FEMA, banking/demat routes and offer-document eligibility. Tax treatment also differs in withholding and treaty contexts. TaxGuru’s NRI capital-gains guide discusses listed-equity gains and non-resident considerations. NRI investors should not assume that the resident ₹1.25 lakh equity-LTCG threshold or resident withholding mechanics automatically apply to them.

SEBI ICDR and Disclosure Framework

The offer states that it is being made under Regulation 6(1) of the SEBI ICDR Regulations, 2018. TaxGuru hosts the SEBI ICDR Master Circular, which consolidates operational requirements for public issues including ASBA terminology and intermediaries. A DRHP filing is a disclosure and regulatory-review stage; SEBI does not recommend or approve the shares as an investment, and the DRHP itself expressly says SEBI does not guarantee its accuracy or adequacy.

Frequently Asked Questions

1. Is the Inox Air Products IPO open for subscription?

No. As at 7 October 2026, the company is at DRHP stage. The price band and bid/open/close dates have not been specified.

2. How large is the proposed IPO?

The proposed offer is an OFS of up to 77,156,663 equity shares of face value ₹1 each. The rupee size cannot be calculated until the offer price is fixed.

3. Will Inox Air Products receive IPO money?

No fresh issue is proposed. The company will not receive the OFS proceeds; they accrue to selling shareholders subject to offer terms and expenses.

4. What were FY 2026 revenue and profit?

Restated revenue from operations was ₹3,033.93 crore and profit for the year was ₹913.87 crore. EBITDA was ₹1,647.79 crore.

5. Can the IPO P/E ratio be calculated now?

Not responsibly. FY 2026 EPS is disclosed, but the price band/offer price is not yet available.

6. How will applications be made?

Public issue applications use ASBA. Eligible individual applications can use UPI-based ASBA subject to the applicable framework and final offer document.

7. How are shares taxed after listing?

Tax depends on holding period, STT and taxpayer status. For tax period 2026-27, qualifying STT-paid listed-equity STCG is generally 20% and qualifying LTCG generally 12.5%, subject to statutory conditions.

8. Does this article use GMP?

No. Unofficial grey-market premium is not an issuer/SEBI/exchange offer-document metric and is not used for valuation or prediction here.

Key Takeaways

• Inox Air Products filed its DRHP with SEBI on 5 October 2026.
• The proposed IPO is entirely an OFS of up to 77,156,663 shares; there is no fresh issue.
• Price band, offer dates and rupee offer size are not yet fixed.
• FY 2026 revenue from operations was ₹3,033.93 crore, EBITDA ₹1,647.79 crore and profit ₹913.87 crore.
• FY 2026 operating cash flow improved to ₹1,264.24 crore, while adjusted ROCE declined to 24.45%.
• The company operates 57 locations and reports a 22.4% FY 2026 Indian industrial-gases revenue market share based on the cited CRISIL Report.
• Customer-site dependence, utilities, end-market concentration, pricing and capacity execution are material disclosed risks.
• ASBA/UPI and T+3 listing rules govern the public-issue process once dates are fixed.
• No Subscribe, Avoid or listing-price prediction is made.

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Disclaimer: This article is for general informational and educational purposes only and is based primarily on the Inox Air Products Limited Draft Red Herring Prospectus and Draft Abridged Prospectus filed with SEBI and publicly available regulatory material reviewed as on 7 October 2026. The IPO remains at the draft stage; price band, offer dates, final offer size, allocation and other terms may change in the RHP/prospectus. This article is not an offer, solicitation, Subscribe/Apply/Avoid call, investment recommendation, valuation opinion, trading view, tax advice, legal advice or personalised financial advice. No reliance should be placed on unofficial grey-market premium, listing-gain estimates or price predictions. Investors should read the complete RHP/prospectus, risk factors, financial statements, basis for offer price, exchange notices and tax section and obtain professional advice appropriate to their circumstances. TaxGuru, its owners, management, editors, authors, employees and associated persons accept no responsibility or liability for any loss, damage, consequence, decision or action arising from reliance on or use of this article.