Invest in WOL 3D IPO – Price Band ₹142 to ₹150 Per Share!

Incorporated in November 1988, WOL 3D India Limited provides 3D Printing solutions, enabling easier prototyping for various sectors such as manufacturing, education, engineering, architecture, interior design, fashion design, product design, medical, and dental. The company's product portfolio includes 3D printers, scanners, laser engravers, 3D pens, consumables like 3D filaments and resins, and 3D prototyping services. WOL 3D manufactures 3D filaments for additive manufacturing using ABS and PLA plastics. The company has four branch offices and five franchise offices across India. Its manufacturing facility in Bhiwandi, Maharashtra, holds ISO 9001:2015, ROHS, CE, and BIS Certifications. As of 31st August 2024, the company had 77 employees.

The Objectives of the Issue

WOL 3D India Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Repayment, in full or in part, of certain of the outstanding borrowings
2. To meet Working Capital requirements
3. General Corporate Purpose

Highlights of WOL 3D IPO

WOL 3D IPO is set to launch with a book-built issue of ₹25.56 crores. The issue is a combination of a fresh issue and an offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 23rd September 2024 and closes on 25th September 2024.
• The allotment is expected to be finalised on 26th September 2024.
• Refunds will be initiated on 27th September 2024.
• Credit of shares to Demat accounts is also expected on 27th September 2024.
• The company will tentatively list on NSE SME on 30th September 2024.
• The price band is set at ₹142 to ₹150 per share.
• The fresh issue comprises 14.52 lakh shares aggregating to ₹21.78 crores.
• The offer for sale comprises 2.52 lakh shares aggregating to ₹3.78 crores.
• The minimum lot size for the application is 1000 shares.
• Retail investors need to invest a minimum of ₹150,000.
• The minimum investment for HNI is 2 lots (2,000 shares), amounting to ₹300,000.
• Hem Securities Limited is the book running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Hem Finlease is the market maker for the IPO.

WOL 3D IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 25th September 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.

WOL 3D IPO Issue Details/Capital History

The WOL 3D IPO is scheduled from 23rd September to 25th September 2024, with a price band of ₹142 to ₹150 per share and a face value of ₹10. The total issue size is 17,04,000 shares, raising up to ₹25.56 crores through a combination of fresh issue and offer for sale. The IPO will be listed on NSE SME. The pre-issue shareholding is 50,00,000 shares.

WOL 3D 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 1000 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: WOL 3D India Ltd

Strengths:

• India-based brand offering a comprehensive range of 3D printing solutions
• Dedicated after-sales network for excellent customer support
• Consistent focus on quality
• Established filament manufacturing capability for efficient backward integration
• Diverse product portfolio catering to various industries

Weaknesses:

• Limited geographical presence compared to global competitors
• Dependence on imported 3D printers for certain brands

Opportunities:

• Growing adoption of 3D printing technology across various industries
• Potential for expansion into new geographical markets
• Increasing demand for customized and rapid prototyping solutions

Threats:

• Rapid technological advancements in the 3D printing industry
• Potential entry of global players into the Indian market
• Fluctuations in raw material prices for filament manufacturing

Financial Highlights: WOL 3D India Ltd

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

WOL 3D India Limited has shown significant growth in recent years. The company's revenue increased by 69% and profit after tax (PAT) rose by 109% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown strong growth, increasing from ₹1,002.62 lakhs in FY22 to ₹2,456.27 lakhs in FY24, representing a growth of about 145% over two years.

Revenue has seen substantial growth, rising from ₹2,037.03 lakhs in FY22 to ₹4,001.43 lakhs in FY24, marking an impressive increase of 96.4% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹84.42 lakhs in FY22 to ₹503.3 lakhs in FY24, representing a substantial growth of 496% over two years.

Net Worth has shown strong growth, increasing from ₹326.25 lakhs in FY22 to ₹1,061.22 lakhs in FY24, a growth of about 225% over two years.

Total Borrowings have fluctuated, increasing from ₹509.78 lakhs in FY22 to ₹678.98 lakhs in FY23, but then decreasing to ₹572.6 lakhs in FY24. This recent decrease in borrowings, coupled with increased profitability, suggests improving financial health.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in Net Worth and the recent decrease in borrowings indicate a strengthening financial position. Investors should consider these positive trends along with the company's growth strategy and the evolving 3D printing market when evaluating the IPO.