Cryogenic OGS, headquartered in Vadodara, Gujarat, is entering the capital markets with a 100% fresh issue IPO of 37.80 lakh equity shares in a price band of INR 44–47 per share. The offer opens on 3 July 2025 and closes on 7 July 2025, with a proposed listing on the BSE SME platform on 10 July. The IPO aims to raise INR 16.63 – 17.77 crore. Incorporated in 1997, Cryogenic OGS has evolved into a niche engineering player specialising in measurement, metering, filtration, and additive injection systems for downstream fluid handling.
Cryogenic OGS IPO Review: Industry Outlook
India’s engineering and capital goods sector is getting structural tailwinds driven by infrastructure growth, energy diversification and indigenisation of critical industrial equipment. As per IBEF, engineering exports account for over 25% of total merchandise exports, and the sector has seen cumulative FDI inflows of over USD 6.6 billion (~INR 56,584 crore) since 2000.
Downstream oil and gas sector — Cryogenic OGS’s core market — is well poised for long-term growth. India, the third-largest oil consumer in the world, is upgrading its refining infrastructure with investments of over USD 25 billion. With 23 refineries already in place and growing ethanol blending mandates (20% by 2026), demand for precision flow metering, dosing and filtration systems is expected to skyrocket. With cleaner fuel policies, modernisation of truck loading terminals and digitisation of chemical handling, the relevance of Cryogenic’s integrated skid solutions is expanding.
Also, the government’s PLI schemes and Make-in-India initiative are encouraging PSU and private players to source domestically, creating a conducive environment for players like Cryogenic OGS. Its segment — fuel handling infrastructure — is niche but critical and expected to grow in double digits annually along with refining, ethanol blending and petrochemical logistics.
In this growth scenario, Cryogenic OGS will benefit significantly due to its specialisation, regulatory familiarity and early mover advantage in downstream metering and injection technologies.
Business Overview
Cryogenic OGS operates from an 8,300 sq. meter facility in Vadodara. It provides critical equipment for the downstream oil & gas, chemical, and fluid management sectors. Its portfolio includes prover tanks, basket strainers, turbine flow straighteners, LPG vapour eliminators, additive injection skids, and gas conditioning units. These systems are used by PSUs and large private clients in refining, fuel distribution, and ethanol blending infrastructure.
Backed by DNV fabrication certification and engineering software like AutoCAD ELD, the company undertakes comprehensive design-to-delivery projects, tailoring each unit to the end-use requirements of the customer. It has also begun global outreach via a technical collaboration with KMC Oil & Gas Equipment LLC, Abu Dhabi.
Cryogenic OGS IPO Review: Business Model Analysis
Cryogenic OGS follows a make-to-order (MTO) model, emphasising precision fabrication based on custom project requirements. Its business is structured around the following dynamics:
- Engineering-Led Bidding: All products are designed in-house and quoted against detailed client specifications, often for PSU tenders or EPC packages.
- Project-Driven Execution: Revenue is primarily generated from bespoke work orders. FY24 saw 99.73% of revenue come from product sales attached to such orders. Service and maintenance play a negligible role.
- Regional Deployment Bias: Gujarat and Maharashtra, being home to major refineries and storage terminals, account for nearly 89% of operational revenues.
- Limited Recurring Income: Unlike OEMs with annual maintenance contracts (AMCs), Cryogenic does not currently operate a large aftermarket or service portfolio, reducing revenue stability.
- Scale-Adjusted Operations: With only 31 full-time employees and a lean asset base, the company maintains a just-in-time inventory structure and engages third-party labour and material vendors.
- Bid Book Visibility: As of 31 March 2025, the company had INR 28.37 Cr in domestic bids and INR 26.76 Cr in international bids under consideration — more than 3x FY24 revenue, indicating strong deal flow.
While the company’s highly customised and capital-efficient structure enables high EBITDA margins, it also introduces volatility, given that each project can significantly swing quarterly outcomes.
Customer & Regional Concentration
- Gujarat contributed 52.10% of FY24 revenue
- Maharashtra contributed 36.46%
Together, these two states contributed nearly 89% of operational revenues. The company’s export share remains low at 1.79%, although international bid activity has picked up.
Cryogenic OGS IPO Review: Financial Performance
| Particulars | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue | 22.02 | 24.25 | 32.90 |
| Net Profit | 4.08 | 5.35 | 6.12 |
| EPS (INR) | 3.88 | 5.09 | 5.83 |
| EBITDA Margin (%) | 25.65 | 26.33 | 24.20 |
| ROCE (%) | 28.46 | 29.06 | 28.93 |
| RONW (%) | 23.27 | 23.38 | 21.12 |
| NAV (INR) | 16.68 | 21.77 | 27.61 |
Cryogenic OGS financial performance reflects consistent topline and bottom-line growth, with stable and healthy profitability metrics. EBITDA margins above 24% and ROCE near 29% signal operational efficiency. However, while FY25 results appear optimistic, the business remains project-dependent with modest cash flow visibility. Nonetheless, the trajectory is strong, and the return ratios are well above SME benchmarks.
Cryogenic OGS IPO Valuation Analysis
At the upper band of INR 47 per share and projected FY25 EPS of INR 5.83, the implied price-to-earnings (P/E) ratio stands at approximately 8.06x. This places Cryogenic OGS in a discounted valuation zone compared to listed peers in the niche engineering and capital goods segment:
- GMM Pfaudler: Trades at ~32x, driven by scale and global presence in process equipment
- Praj Industries: Around 30x, operating in biofuel and renewable process tech
- Engineers India Ltd (EIL): Trades in the 20–25x range, serving PSU oil clients
Although Cryogenic OGS operates at a smaller scale, its EBITDA margins (24–26%) and ROCE (~29%) are highly competitive. The low leverage and strong RoNW further strengthen the case for a valuation re-rating post-listing.
On an EV/EBITDA basis (assuming post-issue EV of ~INR 40 Cr and FY25 EBITDA ~INR 8 Cr), the multiple is ~5x — again on the lower side relative to sector averages.
Overall, Cryogenic OGS appears attractively priced considering its niche, execution track record, and profitability profile.
Objects of the Issue
Proceeds from the fresh issue will be deployed for:
- INR 11.5 crore will be used for working capital requirements
- Balance will be used for general corporate purposes
Cryogenic OGS IPO Review: Strengths
- Strong & Specialised Product Portfolio: Offers high-performance prover tanks, additive injection skids, and metering systems built with SS304/SS316 grade materials, certified by DNV. These products are engineered for long-term reliability and regulatory compliance.
- Experienced Promoter Leadership: Led by Mr. Nilesh Patel with over 22 years in fluid systems engineering. His sectoral insights have driven sustained profitability and project delivery consistency.
- Robust Supplier Ecosystem: Maintains quality sourcing relationships with over 15 long-term suppliers, enabling lean inventory management and timely production cycles.
- Established Client Base: Services marquee clients including IOCL, BPCL, HPCL, and Nayara Energy. Repeat orders and inclusion in vendor panels reflect its reliability and technical standing in PSU procurement.
- Consistent Financial Returns: Sustained EBITDA margins above 24% and ROCE near 29% across three fiscals, with no history of losses, showcasing operational prudence.
Cryogenic OGS IPO Review: Risks & Concerns
- High Client Concentration: Top 5 clients contributed 70.27% of FY25 revenue. Loss of major clients or delayed payments could significantly impact operations, profitability, and cash flow.
- Product Dependency Risk: Air eliminators and oil & gas metering skids contributed 29.65% and 27.31% of FY25 revenue. Any demand drop or inability to upgrade may affect growth.
- Geographic Concentration: 81.67% of FY25 revenue came from Gujarat (46.72%) and Maharashtra (34.95%). Regional slowdowns or regulatory shifts could negatively affect performance.
- Capital Intensive Business Model Shift: Transitioning to a model where full equipment supply is the company’s responsibility has increased capital needs, working capital dependency, and reliance on external financing.
- Cash Flow Volatility: Despite positive operational cash flows in FY25 (INR 1.94 crore), negative flows from financing and investing activities may affect future liquidity and investment capability.
Final Verdict
Cryogenic OGS IPO review sheds light on a niche engineering business with strong margins, credible financials, and early global ambitions, and it seems a sound opportunity to participate. The valuation is modest, and promoter dilution is growth-focused. That said, regional and operational concentration risks persist.
The IPO is suitable for SME investors seeking margin-led niche exposure with moderate growth prospects.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.