HVAX Technologies IPO Lists at ₹486 Above Issue Price

HVAX Technologies Limited, a company specializing in cleanroom infrastructure and controlled environment solutions, made a modest debut on the Indian stock market on Monday, 7th October 2024, with its shares listing at a slight premium to the issue price on the National Stock Exchange (NSE) SME platform.

Listing Details

• Listing Price: HVAX Technologies shares were listed at ₹486 per share on the NSE SME platform, marking a positive start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a moderate premium over the IPO issue price. HVAX Technologies had set its IPO price band from ₹435 to ₹458 per share, with the final issue price being fixed at the upper end of ₹458.
• Percentage Change: The listing price of ₹486 on the NSE SME translates to a premium of 6.11% over the issue price of ₹458.

First-Day Trading Performance

• Opening vs. Latest Price: Following its modest opening, HVAX Technologies' share price experienced some volatility. By 10:10 AM, the stock was trading at ₹474.95, down 2.27% from its opening price but still 3.7% above the issue price.
• Market Capitalisation: As of 10:10 AM, the company's market capitalisation stood at ₹131.89 crore.
• Trading Volume: The traded volume was 1.96 lakh shares with a traded value of ₹9.55 crore, indicating moderate investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market initially reacted positively to HVAX Technologies' listing, but the stock experienced some selling pressure during early trading.
• Subscription Rate: The IPO was oversubscribed by 34.16 times, with NIIs leading at 77.92 times subscription, followed by retail investors at 26.69 times, and QIBs at 14.02 times.
• Grey Market Premium: Prior to listing, shares were trading at a premium of 5% in the grey market, which was slightly exceeded at listing.

Growth Drivers and Challenges

Expected drivers of future performance:

• Experienced promoters and management team
• Consistent project implementation expertise
• Strong order backlog providing visibility for future growth
• Established presence in India and international markets

Potential challenges:

• Competitive cleanroom infrastructure sector
• Dependence on third-party manufacturers for products
• Potential volatility in project-based revenue streams

Utilisation of IPO Proceeds

HVAX Technologies plans to use the funds for:

• Funding working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 12% to ₹10,746.99 lakh in FY2024 from ₹9,613.86 lakh in FY2023
• Profit After Tax (PAT) rose by 80% to ₹939.07 lakh in FY2024 from ₹520.37 lakh in FY2023

As HVAX Technologies begins its journey as a listed entity, market participants will closely monitor its ability to leverage its project execution expertise and expand its order book to drive future growth and shareholder value. The modest listing and subsequent price decline suggest cautious market sentiment towards the company's prospects in the specialized cleanroom infrastructure sector. Investors will be watching for signs of continued revenue growth and margin improvement as the company executes its ongoing projects and secures new orders.