At a Glance
Cryogenic OGS Ltd, a Vadodara-based industrial engineering company, is raising ₹17.77 Cr via a 100% fresh issue on the BSE SME platform. They make filters, meters, strainers, and skids for oil & gas, chemicals, and liquid transfer applications. With 18% PAT margins and zero debt, the financials are cleaner than their filtration systems. But with a ₹2.82L minimum retail ticket, this SME IPO isn’t for retail chillar investors.
1. 🎯 Introduction with Hook
If you’ve never seen a prover tank, you’re not alone. Most folks can’t even guess it’s used to calibrate liquid flow in pipelines.
But for Cryogenic OGS, it’s business as usual.
For 27 years, this quietly profitable engineering company has been building hardcore industrial systems – and now they want to go public.
The IPO? Small, solid, and already 99x subscribed before closing. The price? ₹47/share.
The vibe? SME-meets-Petroleum Engineering-NIT grad-startup.
Let’s filter out the hype and decode.
2. 🧪 Business Model – WTF Do They Even Do?
Cryogenic OGS Ltd designs, manufactures, and assembles fluid handling, measurement, and filtration systems for industrial use.
Their clients? Mostly B2B buyers in:
- 🚢 Oil & Gas
- 🧪 Chemicals
- 💧 Liquid processing and transport
Products Include:
- Basket Strainers – keep gunk out of the pipes
- Air Eliminators – remove air bubbles for accurate flow metering
- Additive Dosing Skids – precise injection into main lines
- Truck Loading Skids – used at fuel depots, gas terminals
- Prover Tanks – for calibration and compliance
All of it is precision-engineered metalwork, not just valves and nuts.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
Cryogenic OGS is a rare SME IPO that’s consistently profitable.
| ₹ in Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 22.7 | 25.7 | 33.8 (+32%) |
| EBITDA | 5.65 | 6.39 | 7.96 |
| PAT | 4.08 | 5.35 | 6.12 (+15%) |
| Net Worth | 17.5 | 22.9 | 29.0 |
| Debt | 0.00 | 0.00 | 0.00 |
Highlights:
- PAT margin: 18.6%
- EBITDA margin: 24.2%
- ROE: 23.6%
- ROCE: 28.9%
- 🧾 Debt: Zilch
- 🧪 Employees: Just 23. No frills, all skills.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
With ₹67.12 Cr m-cap and ₹6.12 Cr PAT:
- P/E (post-issue): ~10.96x
- P/BV: ~1.7x
- EPS (post-issue): ₹4.29
For context, most SME engineering IPOs have listed at 13–18x P/E recently.
👉 At sub-11x P/E, it’s not crazy. Actually… kinda reasonable.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 💰 ₹11.5 Cr going into working capital – which likely means raw materials, manpower, inventory
- 🧾 100% fresh issue = no promoter exit
- 🔥 Anchor book of ₹5.05 Cr already raised
- 💥 Oversubscription bonanza:
- 138x in Retail
- 124x in HNIs
- 13x in QIBs
Translation: Big boys and anchors came to play.
6. 💣 Balance Sheet – How Much Debt, How Many Dreams?
No loans. No red flags. Only assets.
| Metric | FY25 |
|---|---|
| Total Assets | ₹33.85 Cr |
| Total Borrowing | ₹0.00 Cr |
| Net Worth | ₹28.99 Cr |
| Reserves | ₹18.49 Cr |
Solid tangible assets + rising reserves = SME rarity.
7. 💵 Cash Flow – Sab Number Game Hai
- Likely positive operating cash flows (margin-backed)
- But working capital is chunky in this sector – inventory cycles + project billing
- FY25 IPO funds = liquidity boost to fuel scale, not survival
No cash burn. Just a business that needs more oxygen, not life support.
8. 📐 Ratios – Sexy or Stressy?
| KPI | Value |
|---|---|
| ROE | 23.6% |
| ROCE | 28.9% |
| PAT Margin | 18.6% |
| EBITDA Margin | 24.2% |
| P/E | 10.96x |
| D/E | 0.00 |
Ratios are solid across the board. For a ₹17 Cr issue, this is industrial porn.
9. 💵 P&L Breakdown – Show Me the Money
Cryogenic OGS makes money via project-based industrial sales.
Revenue Model:
- Custom-engineered systems (contract manufacturing)
- No recurring revenue, but strong B2B relationships
Cost Buckets:
- Raw material: ~40–45%
- Labour & assembly: ~20%
- Overheads, marketing: ~10–15%
- Rest: retained as margin
No software-like margin story, but predictable and precise.
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | PAT Margin | Revenue |
|---|---|---|---|---|
| Cryogenic OGS | 10.9x | 23.6% | 18.6% | ₹34 Cr |
| Shera Energy (listed SME) | 15x | 18% | ~6% | ₹160 Cr |
| SISL Infra (SME) | 14x | 16% | ~9% | ₹40 Cr |
Cryogenic’s margins and return ratios are stronger than bigger peers, though scale is smaller.
11. 🧩 Miscellaneous – Shareholding, Promoters
Promoters:
- Mr. Nilesh Natvarlal Patel
- Mrs. Kiranben Patel
- Mr. Dhairya Patel
Pre-IPO Holding: 100%
Post-IPO Holding: ~73.5% (assuming 37.8L new shares on 1.05 Cr base)
Good sign: Promoters are not selling a single share. Also – no VC overhang. No shady LLPs. No NBFC cross-holding. Clean.
12. 🧑⚖️ EduInvesting Verdict™
Let’s recap:
✅ 28% ROCE
✅ 24% EBITDA Margin
✅ Debt-Free
✅ Reasonably Valued
✅ Oversubscribed 99x before closing
❌ ₹2.82L minimum investment (so, sorry retail dabblers)
This is not your next unicorn. But it might be your next steady compounder if they continue to execute.
If you can digest the ticket size — Cryogenic OGS is one of the better-engineered SME IPOs this year.
Tags: Cryogenic OGS IPO, Vadodara SME IPO, industrial filters IPO, truck skid manufacturer, July 2025 IPOs, SME investment, BSE SME, Cryogenic IPO review
✍️ Written by Prashant | 📅 July 7, 2025
