HVAX Technologies Limited, a leading player in turnkey projects and cleanroom solutions, has launched its Initial Public Offering (IPO) to raise ₹33.52 crores. Specializing in controlled environment infrastructure and providing engineering, procurement, and execution services, HVAX has established itself as a go-to firm for pharma and healthcare companies.

The HVAX Technologies IPO is a Book Built Issue offering a fresh issue of 7.32 lakh shares. The IPO subscription period opened on September 27, 2024, and will close on October 1, 2024. Investors looking to participate in this offering can invest at a price band of ₹435 to ₹458 per share, with a minimum lot size of 300 shares. Retail investors are required to make a minimum investment of ₹1,37,400, while High-Net-Worth Individuals (HNIs) can invest in multiples of two lots, with a minimum investment of ₹2,74,800.

Fedex Securities Private Limited is the book-running lead manager, and KFIN Technologies Limited is handling the registrar duties for the IPO. Aftertrade Broking Private Limited serves as the sole market maker.

The allotment for HVAX Technologies shares is expected to be finalized by October 3, 2024, with shares likely to be listed on the NSE SME on October 7, 2024. Investors can track the live subscription status on the NSE or through the registrar’s website.

To check the allotment status, investors need to:

Visit the IPO allotment page on the registrar's website.

Select "HVAX Technologies Limited IPO" from the list.

Enter the required details such as PAN, application number, or DP Client ID.

Submit to view your allotment status.

Financial Performance and IPO Review

HVAX Technologies is well-established in providing cleanroom infrastructure and controlled environments crucial for the pharma and healthcare sectors. Its comprehensive offerings include design, engineering, and consultancy services for high-end cleanroom facilities and environments required for precise pharmaceutical processes.

Founded by Nirbhaynarayan Singh and Prayagdatt Mishra, the company boasts a combined experience of over 20 years in executing large-scale HVAC and turnkey projects. Their vision and leadership have been instrumental in driving the company’s growth, enabling it to cater to a wide range of pharma and healthcare clients.

In terms of financials, HVAX Technologies has shown a consistent upward trajectory. In Fiscal Year 2024, the company reported ₹10,746.99 lakhs in revenue, up from ₹9,613.86 lakhs in FY2023 and ₹6,879.13 lakhs in FY2022. The company’s EBITDA figures also reflect steady growth, with ₹1,382.72 lakhs in FY2024 compared to ₹855.65 lakhs in FY2023 and ₹688.86 lakhs in FY2022.

The Profit After Tax (PAT) has similarly increased, rising to ₹939.07 lakhs in FY2024 from ₹520.37 lakhs in FY2023 and ₹418.15 lakhs in FY2022. This growth reflects HVAX's strong operational efficiency and financial stability.

For this IPO, the company is issuing shares at a pre-issue EPS of ₹47.36 and a post-issue EPS of ₹33.81. The pre-issue P/E ratio is 9.67x, while the post-issue P/E ratio is 13.54x, against the industry P/E ratio of 48.97x. This suggests that the IPO is fairly priced based on market standards. The company’s ROCE for FY24 is 25.17%, and the ROE is 39.29%, indicating efficient use of capital.

Grey Market Premium and Subscription Status

As of September 30, 2024, the Grey Market Premium (GMP) for HVAX Technologies is expected to be ₹0, reflecting market caution due to the company’s financial performance. While GMP may serve as an indicator of potential listing gains, it is important to note that no real trading occurs based on GMP, and it should not be the sole factor in investment decisions.

The live subscription status shows that the HVAX Technologies IPO has been subscribed 2.29 times as of September 30, 2024. Investors can continue to track real-time subscription data on the NSE.

Use of IPO Proceeds

The funds raised through the HVAX Technologies IPO will be allocated as follows:

₹2,170 lakhs for working capital requirements.

The remaining amount for general corporate purposes.

Given the company’s financial performance and the valuation of the IPO, we recommend investors to avoid subscribing to the HVAX Technologies Limited IPO for both listing gains and long-term investment. The current market sentiment, reflected in the 0% GMP, indicates that this IPO may not provide significant returns upon listing.

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