Navigating the landscape of Initial Public Offerings requires a thorough examination of a company’s business model, financial health, and market prospects. For investors guided by Islamic principles, an essential step involves assessing an investment’s adherence to Shariah compliance. Here, we provide an in-depth analysis of the Cryogenic OGS Ltd. IPO, covering its operations, financial performance, IPO specifics, and, significantly, its Shariah status.
Table of Contents
Crucial Shariah Status: Cryogenic OGS Ltd. is Non-Shariah Compliant
For Muslim investors, ensuring an investment aligns with Islamic Shariah principles is a fundamental consideration. Based on the detailed screening notes, Cryogenic OGS Ltd. is explicitly categorized as Non-Shariah Compliant.
- The company’s business in engineering and manufacturing passes the Shariah screening.
- Its impermissible income to total revenue ratio also passes.
- The interest-bearing debt to total assets ratio is 0.0%, which passes the screening.
- However, the company failed Rule 6 because of its high investment in non-compliant shares, investments in bonds, and fixed deposits. This is the only reason for its non-Shariah compliant status.
Therefore, for Muslim investors strictly prioritizing Shariah compliance, Cryogenic OGS Ltd. IPO is not considered a Shariah-compliant investment option due to its specific investment practices.
For other investors who are still interested in understanding the operational and financial specifics of this IPO, please proceed further for reading more details. This analysis is provided for all investors.
About Cryogenic OGS Ltd.: Engineering Excellence and Fluid Control
Cryogenic OGS Limited was incorporated in September 1997. The company manufactures and assembles high-quality measurement and filtration equipment for industries such as oil, gas, chemicals, and related fluid sectors. It focuses on innovative and tailored services for these industries, providing customized solutions to meet specific customer needs. The company offers design, process engineering, and manufacturing solutions, including fabrication, assembly, and testing facilities.
- The company specializes in the oil and gas industry, providing fluid control equipment.
- It offers solutions for metering, filtering, pressure reduction, dosing, and blending applications.
- Cryogenic OGS Limited serves a wide array of clients, including prominent terminal automation companies in India and enterprises listed among the top 500 companies in the Indian economy.
- Its equipment is currently installed at over 200 locations in India as well as internationally.
- Over 90% of its business comes from repeat customers, trusting in consistent product performance, timely delivery, competitive pricing, and exceptional after-sales service.
- At Cryogenic, there is a prioritization of process safety, reliability, and compliance with both national and international standards, including API, IS, ASME, and ATEX regulations.
- The company utilizes innovative proprietary technologies to offer a comprehensive range of filtration, metering, and separation solutions.
- Whether standard or custom-engineered equipment is required, Cryogenic delivers choices tailored to specific needs for downstream processing industries, including oil, gas, water, and chemicals.
- Products include oil filtration and metering, pressure reduction, gas conditioning, and additive dosing and injection systems.
Product Portfolio:
- Basket Strainers: Designed for removing debris from pipelines, protecting pumps, valves, and other downstream equipment.
- Air Eliminators: Essential for removing air and other gases from liquid systems to ensure accurate metering and efficient system operation.
- Prover Tanks: Used for calibrating the volume of flow meters, ensuring precise measurement in various industrial applications.
- Additive Dosing Skid: A flexible system for the continuous and fully automatic dosing of additives into the main product line.
- Truck Loading/Tank Wagon Loading Skid (Liquid & Gas Skid): A skid for liquid and gas for measurement, control, and filtration.
Competitive Strengths:
- Strong and Unique Product Technology
- Experienced Promoters, Management, and a well-trained employee base
- Consistency in Quality and Service Standards
- Established Relationships with Suppliers
- Stable Customer Base
The company has worked with third party Inspection Agencies like EIL, MECON, PDIL, JACOB H & G, DNV, BVIS, SGS, IRS, LLOYDS, PABSTA, TUV, and TATA PROJECTS.
Vision Statement:
The vision at Cryogenic is to become a leading force across diverse fluid industries, including oil, gas, chemical, and beyond. The company is committed to expanding its presence in every relevant terminal and sector, both in India and internationally, while prioritizing customer satisfaction, respect, and trust.
Cryogenic OGS Ltd. IPO: Key Details
The Initial Public Offering of Cryogenic OGS Ltd. is structured as a Bookbuilding Issue. The IPO opens on Thursday, July 3, 2025, and is scheduled to close on Monday, July 7, 2025. The company aims to raise a total of ₹17.77 Crores through the fresh issuance of 37,80,000 shares.
- IPO Open Date: July 3, 2025 (Thursday)
- IPO Close Date: July 7, 2025 (Monday)
- Face Value: ₹10 per share
- Issue Price Band: ₹44 to ₹47 per share
- Lot Size: 3,000 Shares
- Minimum Investment (Retail): 2 lots (3,000 shares) amounting to ₹1,41,000
- Total Issue Size: 37,80,000 shares (aggregating up to ₹17.77 Crores)
- Net Offered to Public: 35,91,000 shares (aggregating up to ₹16.88 Crores)
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Tentative Allotment Date: Tuesday, July 8, 2025
- Initiation of Refunds: Wednesday, July 9, 2025
- Credit of Shares to Demat: Wednesday, July 9, 2025
- Tentative Listing Date: Thursday, July 10, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 7, 2025
Financial Performance: A Snapshot of Cryogenic OGS Ltd.
Cryogenic OGS Limited has shown consistent growth in its financial performance. The company’s revenue increased by 32% and profit after tax (PAT) rose by 15% between the financial year ending March 31, 2025, and March 31, 2024.
- Assets: Increased steadily from ₹24.00 Crores in March 2023 to ₹33.85 Crores in March 2025.
- Revenue: Grew from ₹22.71 Crores in March 2023 to ₹33.79 Crores in March 2025.
- Profit After Tax: Showed consistent improvement, from ₹4.08 Crores in March 2023 to ₹6.12 Crores in March 2025.
- EBITDA: Increased from ₹5.65 Crores in March 2023 to ₹7.96 Crores in March 2025.
- Net Worth: Grew from ₹17.52 Crores in March 2023 to ₹28.99 Crores in March 2025.
- Reserves and Surplus: Increased from ₹17.02 Crores to ₹18.49 Crores in the same period.
- Total Borrowing: The company has maintained zero total borrowing across all periods shown. This is a strong positive indicator of financial discipline.
Key Performance Indicator (KPI): Cryogenic OGS Ltd.
Key Performance Indicators offer insights into Cryogenic OGS Ltd.’s efficiency and valuation as of Monday, March 31, 2025.
- The market capitalization of Cryogenic OGS IPO is ₹67.12 Crores.
- ROE (Return on Equity): 23.62%.
- ROCE (Return on Capital Employed): 28.93%.
- RoNW (Return on Net Worth): 21.12%.
- PAT Margin: 18.61%.
- EBITDA Margin: 24.20%.
- Price to Book Value: 1.70.
Objects of the Issue: Purpose of the IPO Funds
Cryogenic OGS IPO proposes to utilize the Net Proceeds from the issue towards the following objectives:
- To Meet Working Capital Requirements: ₹11.50 Crores will be allocated to support the company’s operational liquidity and growth needs.
- General Corporate Purposes: Funds will be used for various strategic initiatives and overall business flexibility.
- Public Issue Expenses: A portion will cover the costs associated with the IPO itself.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Cryogenic OGS BSE SME is ₹20, which is approximately 42.55% over the issue price. This suggests a potential listing price of ₹67 (₹47 upper band + ₹20 GMP). GMP is an unofficial indicator that reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
Cryogenic OGS Ltd. operates in a specialized engineering and manufacturing niche, demonstrating consistent financial growth and strong profitability margins. The company’s debt-free status is a significant positive. However, its non-Shariah compliant status due to investments in non-compliant instruments like fixed deposits is a critical point for Shariah-conscious investors.
For all investors, a thorough review of the Red Herring Prospectus (RHP) is essential to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is always based on comprehensive research aligned with individual investment goals and risk tolerance.
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