HVAX Technologies IPO Launch: Key Details, Price Brand ₹435-₹458 Per Share

Established in 2010, HVAX Technologies Limited provides turnkey engineering, procurement, and execution of controlled environment and cleanroom infrastructure, design, engineering, and consulting services to pharmaceutical and healthcare companies. The company has completed around 200 projects in India and in 15 countries. As of August 31, 2024, the company employed 125 permanent employees and 21 temporary and agency workers.

The Objectives of the Issue

HVAX Technologies Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Funding the working capital requirements;
2. General Corporate Purpose.

Highlights of HVAX Technologies IPO

HVAX Technologies IPO is set to launch with a book-built issue of ₹33.53 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 27th September 2024 and closes on 1st October 2024.
• The allotment is expected to be finalised on 3rd October 2024.
• Refunds will be initiated on 4th October 2024.
• Credit of shares to Demat accounts is also expected on 4th October 2024.
• The company will tentatively list on NSE SME on 7th October 2024.
• The price band is set at ₹435 to ₹458 per share.
• The fresh issue comprises 7.32 lakh shares, aggregating to ₹33.53 crores.
• The minimum lot size for the application is 300 shares.
• Retail investors need to invest a minimum of ₹137,400.
• The minimum investment for HNI is 2 lots (600 shares), amounting to ₹274,800.
• Fedex Securities Pvt Ltd is the book running lead manager for the IPO.
• Kfin Technologies Limited serves as the registrar.
• Aftertrade Broking is the market maker for the IPO.

HVAX Technologies IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 1st October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

HVAX Technologies IPO Issue Details/Capital History

HVAX Technologies IPO is scheduled from 27th September to 1st October 2024, with a price band of ₹435 to ₹458 per share and a face value of ₹10. The total issue size is 7,32,000 shares, raising up to ₹33.53 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 20,44,875 shares.

HVAX Technologies IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 300 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: HVAX Technologies Ltd

Strengths:

• Experienced promoters and management team
• Consistent implementation expertise
• Strong order backlog ensuring visible growth
• Strong and consistent financial performance
• Solid internal control and risk management system

Weaknesses:

• Dependence on third-party manufacturers for product supply
• Concentration risk in pharmaceutical and healthcare sectors

Opportunities:

• Expanding global presence in cleanroom infrastructure
• Growing demand in pharmaceutical and healthcare industries
• Potential for diversification into new sectors

Threats:

• Intense competition in the engineering and infrastructure sector
• Economic slowdowns affecting client spending
• Regulatory changes in target industries

Financial Highlights: HVAX Technologies Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

HVAX Technologies Limited has shown strong growth in recent years. The company's revenue increased by 12% and profit after tax (PAT) rose by 80% between the financial year ending with March 31, 2024 and March 31, 2023.
Assets have shown fluctuation, increasing from ₹5,386.78 lakhs in FY22 to ₹7,825.59 lakhs in FY23, but then decreasing to ₹6,366.32 lakhs in FY24. Despite the recent decrease, this still represents a growth of about 18.2% over two years.

Revenue has seen consistent growth, rising from ₹6,879.13 lakhs in FY22 to ₹10,746.99 lakhs in FY24, marking an impressive increase of 56.2% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹418.15 lakhs in FY22 to ₹939.07 lakhs in FY24, representing a substantial growth of 124.6% over two years.

Net Worth has shown strong growth, increasing from ₹1,200.4 lakhs in FY22 to ₹3,059.83 lakhs in FY24, a growth of about 154.9% over two years.

Total Borrowings have increased from ₹1,010.03 lakhs in FY22 to ₹2,437.29 lakhs in FY24, which represents an increase of about 141.3% over two years. This increase in borrowings, coupled with growing revenue and profitability, suggests that the company is in an expansion phase.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in Net Worth indicates a strengthening financial position. However, the increase in borrowings should be considered in light of the company's growth strategy. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.