Yash Highvoltage Lists at 90% Premium, Demonstrates Strong Market Confidence on BSE SME

Yash Highvoltage Limited, a specialised manufacturer of transformer bushings operating since 2002, marked a remarkable entry into the public markets on Thursday, 19th December 2024. The company, which has established itself with a diverse portfolio of OIP, RIP/RIS condenser bushings and high-current bushings, commenced trading on the BSE SME platform amid significant investor enthusiasm.

Yash Highvoltage Listing Details

The company's market debut reflected exceptional investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, Yash Highvoltage shares debuted at ₹277.40 on BSE SME, delivering an immediate 90% gain to IPO investors. This strong opening validates the market's recognition of the company's established manufacturing capabilities and market position.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹138 and ₹146 per share, ultimately fixing the final issue price at ₹146. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:51 AM IST, investor enthusiasm continued to build, pushing the stock to hit the upper circuit at ₹291.25. This represented a near-doubling of value at 99.49% above the issue price, demonstrating sustained buying interest throughout the early trading session.

Yash Highvoltage First-Day Trading Performance

The trading activity showed robust participation and strong investor conviction:

• Volume and Value: Within just the first few hours, 17.33 lakh shares changed hands, generating a substantial turnover of ₹49.41 crore. Notably, 100% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed tremendous buying pressure with orders for 48.89 lakh shares while sellers remained absent at the upper circuit. This imbalance highlighted strong investor belief in the company's long-term prospects.

Yash Highvoltage Market Sentiment and Analysis

• Market Reaction: Strong buying interest with buy orders accumulating at upper circuit
• Subscription Rate: The IPO was massively oversubscribed by 181.82 times, with NIIs leading at 330.03 times subscription, followed by retail investors at 151.52 times, and QIBs at 123.7 times
• Pre-listing Interest: Anchor investors demonstrated confidence by investing ₹31.33 crore before the public issue

Yash Highvoltage Growth Drivers and Challenges

Expected drivers of future performance:

• Unique position in Indian transformer bushing market
• Strong industry demand trends
• High entry barriers from track record
• In-house quality testing facilities
• Repeat order rate of over 96%

Potential challenges:

• Capacity constraints
• Raw material price volatility
• Technology changes
• Market competition

Utilisation of IPO Proceeds 

The ₹110.01 crore raised will be used for:

• Setting up new RIP/RIS bushing manufacturing facility
• General corporate purposes
• Note: ₹16.50 crore will go to selling shareholders as OFS proceeds

Yash Highvoltage Financial Performance

The company has shown steady growth:

• Revenue increased by 20.43% to ₹10,912.25 lakhs in FY2024 from ₹9,061.15 lakhs in FY2023
• Q1 FY2025 (ended June 2024) showed revenue of ₹2,777.84 lakhs with PAT of ₹312.75 lakhs
• Robust financial metrics with ROE of 32.51% and ROCE of 44.07%

As Yash Highvoltage begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and capitalize on industry growth. The strong listing and immediate upper circuit suggest robust investor confidence in the company's prospects in the specialized transformer components sector.