Navigating the HVAX Technologies Limited IPO: A Comprehensive Guide

Table of Contents

Background of HVAX Technologies Limited:

HVAX Technologies Limited is all set to float its initial public offering (IPO) as a harbinger of exciting times for the economy. We aim to guide the prospective investor through the intricacies of HVAX Technologies’ IPO-that gives a quick background about the company, its financial health, and market prospects.

HVAX Technologies Limited: In-depth Company Analysis

HVAX Technologies Limited has claimed a niche position in cleanroom technologies along with controlled environment infrastructure. Born with the experience of HVAC project contracting, the company has grown all over the world and has completed its projects in sectors. Holding ISO 9001:2015, ROHS compliant, HVAX Technologies has gained a prime position in quality management in the cleanroom technology space.

About the IPO of HVAX Technologies:

Much-awaited HVAX Technologies IPO opened its issues for subscription from September 27 to October 1, 2024. The share price is in the range of ₹435-458. The total amount collected through this issue is about ₹34 crore, as it involves a fresh issue of 7.32 lakh equity shares. This IPO would be listed on NSE SME from October 7, 2024. For any investor who has an interest in HVAX IPO, information about here would be required for planning investment.

The tabular form below summarises the important dates for the IPO process of HVAX Technologies Limited based on information available:

Event	Date
IPO Opens	September 27, 2024
IPO Closes	October 1, 2024
Allotment Finalization	October 3, 2024
Initiation of Refunds	October 4, 2024
Credit of Shares to Demat	October 4, 2024
Listing Date	October 7, 2024

Here’s the table updated with details for HVAX Technologies Limited IPO based on the information provided:

IPO Details	Information
Company Name	HVAX Technologies Limited
IPO Size	₹33.53 crores
Fresh Issue	₹33.53 crores (around 75,000 equity shares)
Price Band	₹435 to ₹458 per share
Face Value	₹10 per share
Listing Exchange	NSE SME
Minimum Bid Lot	300 shares
Minimum Investment	₹137,400
Issue Type	Fixed Price Issue
Issue Category	SME IPO
QIB Allocation	50%
NII Allocation	15%
Retail Allocation	35%
Company Sector	Engineering, Procurement, and Execution of Controlled Environment Infrastructure
Use of IPO Proceeds	Working capital requirements
Promoter Holding Pre-IPO	Not explicitly mentioned

HVAX Technologies Limited Financial:

Here’s a comparative balance sheet of the last two financial years ending March 31, 2024, and March 31, 2023, for HVAX Technologies Limited:

Financial Metrics	31 Mar 2024	31 Mar 2023	Change
Assets	₹6,366.32 lakh	₹7,825.59 lakh	-18.64% ↓
Revenue	₹10,746.99 lakh	₹9,613.86 lakh	+11.78% ↑
Profit After Tax (PAT)	₹939.07 lakh	₹520.37 lakh	+80.47% ↑
Net Worth	₹3,059.83 lakh	₹1,720.77 lakh	+77.81% ↑
Reserves and Surplus	₹2,991.67 lakh	₹1,659.08 lakh	+80.34% ↑
Total Borrowing	₹2,437.29 lakh	₹1,692.21 lakh	+44.03% ↑

Revenue Growth: HVAX Technologies Limited is showing revenues growth of around 11.78% from FY23 to FY24, up with good revenue growth in the operations.
Profit After Tax Increase: The highest increase was in Profit After Tax, at 80.47%. An increase in this line may likely result from adequate cost control or that their projects are becoming more profitable, or both.
Assets Have Also Decreased: Assets have been decreased by 18.64%, which means that assets had been sold either through consolidation or the decision to make the business more efficient rather than expanding in the physical assets of the business.
Net Worth and Reserves: Increase in net worth and reserves and surplus, as 77.81% and 80.34%, respectively-exhibiting sound financial health with retained earnings that would be either reinvested or applied for further growth
Escalation in Debt: The increase in borrowings by the firm was at 44.03% during this period, which would be associated with funding growth, acquisitions, or capital expenditure. Therefore, it manifests an aggressive expansion or investment approach by the firm.

Overall, the company has made quite a nice upward financial trajectory by having significant profitability and shareholder value gains despite the reduction in assets that may indicate its new strategy towards capital efficiency. The increase in borrowings also seems strategic as funding may be used for expansion or new projects that could fit in line with such ambitions of this company. On the other hand, investors need to look at the impact on profitability and sustainability in the long run.

HVAX Technologies Limited IPO GMP and Subscription:

HVAX Technologies Limited IPO: Market Sentiment and Performance

A new player in the IT industry, HVAX Technologies Limited has been able to raise tremendous interest from the investors through its recently launched Initial Public Offering (IPO). Given here is a brief study on how the market has taken it so far by subscription rates and the Grey Market Premium:

IPO Subscription: The IPO has been subscribed 33.38 times overall, which is very high, indicating extremely high market confidence or speculative interest in HVAX Technologies.
Anchor Investors: Allotted 2,07,000 shares got full subscription, which shows initial good support from anchor investors who normally hold influential and setting right precedents to the rest of the retail and other investors.
Qualified Institutional Buyers (QIB): Subscribed 14.02 times, which means the issue received huge response by large investors, mutual funds, and other institutions, generally considered a vote of confidence in the company’s future prospects.
Non-Institutional Buyers: The subscription is an impressive 77.84 times, signifying high demand from mid-tier investors in the form of corporates or high net worth individuals, probably because of the company business model, technology advancement, or market position.
Retail Investors: Subscribed 25.17 times, showing retail investors have also jumped on the HVAX Technologies bandwagon, perhaps due to the tech sector’s allure, innovations promised by HVAX, or simply following the broader market enthusiasm.
Grey Market Premium (GMP): The GMP of HVAX Technologies IPO was at ₹15. Sustained positive GMP shows speculative buying or the grey market’s perception that the shares will list higher than the issue price. This can be construed because of the great subscription numbers and general attractiveness of the sector.

Market Sentiment Analysis: The high subscription across all categories, especially the eye-catching interest from non-institutional investors, while having a positive GMP would paint a positive picture about market optimism towards HVAX Technologies. Most of these factors include
Sector Popularity: With growth and innovative disruptions, the tech sector tends to be one of the most popular in terms of investor interests.

Company Specifics: HVAX can have unique technology, patents, or market positioning that attracts investors to it as having the potential to eventually produce high future returns.
Market Conditions: The optimistic sentiment surrounding tech IPOs can exist in the market itself as well.

Conclusion: Overall, the high subscription coupled with positive GMP for the IPO of HVAX Technologies Limited indicates a strong market entry as it sets perhaps very high expectations of the listing. Investors have thus bet upon HVAX because of its technology, market fit, or the growth path of the larger sector. Again, these entail every investment caution and follow-up must be kept on the market dynamics, company performance, and broader economy aspects post-listing.

HVAX Technologies Limited IPO EPS and PE Ratio:

This is an EPS and PE Ratio-based analysis up to September 29, 2024, on the HVAX Technologies Limited IPO.

EPS:
Pre-Issue EPS: Pre-issue EPS for HVAX Technologies was ₹47.36. This consideration is based on the latest available financial year as of March 2024.
Post-Issue EPS: The company had estimated its post-issue EPS after adjusting for the fresh issue of shares at ₹33.81. The decrease in the EPS gives a negative signal for such an issue by increased number of shares outstanding.
PE Ratio:
The PE ratio of HVAX Technologies Limited will be computed using the price per share divided by the EPS. As the price range is ₹435-₹458:
- At the lower end of ₹435:
- Pre-issue PE would be ₹435 / ₹47.36 ≈ 9.19
  ₹435 / ₹33.81 ≈ 12.86
Upper End of ₹458:
Pre-issue PE will be ₹458 / ₹47.36 ≈ 9.67
Post-issue PE will be ₹458 / ₹33.81 ≈ 13.55

Valuation Perspective:

The financials report huge revenue but, post-

Even at the higher price of ₹458, the post-issue PE ratios position HVAX Technologies relatively moderately valued than high-growth tech companies, which either points to conservative pricing or market skepticism about growth rate or profitability sustainability.

Market Sentiment and IPO Reception:

Moderate QIB interest and subscription rates may be at moderate levels; that may reflect concerns regarding the growth narrative or profitability margin. Retail interest may be driven by the sector’s potential or perceived undervaluation.

Comparative Valuation:

If sector valuations in the tech or cleanroom technology sector seem lower than these PE, this could look very attractive, implying value if growth assumptions are met. This must, however, be balanced against the cyclicality of the sector and risks of competition and technological innovation.

Growth and Profitability Concerns:

Sector Outlook and Growth Potential for HVAX:

These technologies are increasingly being demanded in pharmaceutical and healthcare industries. It can be a great opportunity for the company, given the increased long-term yields from investment. Such an outlook of the sector can make a significant difference to the performance of HVAX Technologies Limited IPO.
Normally, market risks, competition, and regulatory changes go hand in hand when investing in any IPO. Although growth is impressive regarding HVAX Technologies, the cleanroom technology sector may be saturating or a shift in trends where its market share will be influenced.

Conclusion:

This HVAX Technologies IPO is an investing opportunity in gold for investors who want to make an instant return and have long-term growth as well. Its performance and financials are solid, and the sector is growing fast, making it interesting. However, every investment has its set of risks that need to be carefully considered.