Maxvolt Energy Industries Ltd, a leader in manufacturing lithium battery packs for electric vehicles, energy storage systems, and medical device batteries, is launching its Initial Public Offering (IPO) with a total issue size of ₹ 54.00 Crores. The offering consists of a Fresh Issue of ₹ 43.2 Crores through 24 lakh shares and an Offer for Sale (OFS) of ₹ 10.8 Crores through 6 lakh shares. With the IPO subscription period opening on February 12, 2025, and closing on February 14, 2025, investors will have the opportunity to purchase shares at a price band of ₹ 171 to ₹ 180 per share.

The lot size for the IPO is 800 shares, and retail investors are required to invest a minimum of ₹ 1,44,000. Meanwhile, High-Net-Worth Individuals (HNIs) are required to invest a minimum of 2 lots (₹ 2,88,000). The IPO’s market capitalization is estimated at ₹ 196.27 Crores at the upper price band, and the shares will be listed on the NSE SME with the tentative listing date expected on February 19, 2025.

Maxvolt Energy Industries: A Leader in Lithium Battery Manufacturing

Maxvolt Energy Industries has established itself as a prominent player in the lithium battery market, known for providing efficient and reliable power solutions across various sectors, including electric vehicles and medical devices. Their state-of-the-art manufacturing facilities ensure high-quality production standards and innovations, making them a trusted name in the energy storage systems market.

The company’s promoters, Mr. Bhuvneshwar Pal Singh, Mr. Vishal Gupta, and Mr. Sachin Gupta, bring years of expertise to the company. Their involvement in key aspects like expansion, finance, and sales has been pivotal to the company's growth, positioning them as leaders in the energy storage market.

Financial Overview and Key Metrics

Maxvolt Energy Industries has demonstrated impressive financial performance, with revenues growing steadily over the past few years. The company’s revenue from operations for the fiscal year ending September 30, 2024 was ₹ 4,108.51 Lakhs. This was a notable increase from ₹ 1,391.81 Lakhs in 2022, reflecting strong demand for their lithium battery products.

The EBITDA for the same period stood at ₹ 617.67 Lakhs, further supporting the profitability of the company. Profit after Tax (PAT) for FY 2024 was ₹ 477.02 Lakhs, a significant jump from ₹ 27.88 Lakhs in FY 2023. These results suggest a steady financial growth trajectory, indicating that Maxvolt Energy Industries is well-positioned in the market.

The company’s Key Performance Indicators (KPIs) show a pre-issue Earnings Per Share (EPS) of ₹ 7.07 and a post-issue EPS of ₹ 4.78 for FY 2024. While these figures are promising, it’s important to note that the Price-to-Earnings (P/E) ratio post-issue stands at 37.68x, which is significantly lower than the industry average of 89x. This relatively affordable valuation presents potential opportunities for investors looking for stable growth in the energy sector.

Grey Market Premium (GMP) and Subscription Trends

As of February 14, 2025, the Grey Market Premium (GMP) for Maxvolt Energy Industries’ shares is ₹ 0, indicating no expected gains in the unlisted trading market. This could be a red flag for investors hoping for a quick listing gain, as the GMP reflects the demand-supply dynamics in the unorganized market. However, it’s essential to remember that the GMP is not a reliable indicator of the IPO's actual performance once the shares are listed on the stock exchange.

The live IPO subscription status on February 14, 2025, shows that the IPO is subscribed 1.93 times, indicating a healthy demand, especially as the subscription period comes to a close. While the Grey Market Premium does not offer optimism, the steady subscription trend is a positive sign for investors.

Maxvolt Energy IPO Objectives

Maxvolt Energy Industries plans to use the net proceeds of the IPO for several important purposes, including repayment of borrowings and capital expenditures. The company aims to utilize ₹ 2,038.25 Lakhs to pay off loans from banks and financial institutions, while another portion will fund capital expenditures related to the purchase of plant and machinery. These strategic investments are expected to enhance the company’s capacity and further strengthen its position in the market.

Maxvolt Energy IPO Review

While Maxvolt Energy Industries demonstrates strong financials, its grey market performance and IPO valuation are not showing immediate listing gains. For investors looking to make short-term gains, the IPO may not present an ideal opportunity given the lack of substantial demand in the grey market. However, for those with a long-term investment horizon, Maxvolt Energy Industries could offer strong potential as the company continues to grow in the lithium battery and electric vehicle sectors.

In conclusion, Maxvolt Energy Industries is an established player with a steady growth path. Investors should carefully weigh the IPO's pricing and financial stability before making a decision.

Maxvolt Energy Industries IPO is poised to make waves in the electric vehicle and energy storage markets, but investors should be cautious about the listing gain potential. We recommend a watchful approach while considering the IPO’s long-term growth prospects.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

The Current active IPO are  L.K. Mehta, Shanmuga Hospital, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies.

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