Maxvolt Energy Industries Ltd is a leading manufacturer and supplier of lithium battery packs for Electric Vehicles (EVs), Energy Storage Systems (ESS), and Medical Device Batteries. With state-of-the-art manufacturing facilities, Maxvolt ensures that their products meet the highest standards, providing efficient and reliable power solutions for various applications.

The Maxvolt Energy Industries IPO is a Book Built Issue with a total size of ₹54.00 Crores, consisting of a Fresh Issue of 24.00 Lakh shares worth ₹43.2 Crores and an Offer for Sale (OFS) of 6.00 Lakh shares totaling ₹10.8 Crores. The IPO subscription period begins on February 12, 2025 and closes on February 14, 2025. The allotment is expected to be finalized on February 17, 2025, with the shares listing on the NSE SME on February 19, 2025.

The price band for the Maxvolt IPO is set at ₹171 to ₹180 per equity share, implying a market capitalization of ₹196.27 Crores at the upper price band. The IPO lot size is 800 shares, requiring a minimum investment of ₹1,44,000 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,88,000 for 2 lots (1,600 shares).

The Grey Market Premium (GMP) for Maxvolt Energy Industries IPO is ₹0, indicating no substantial trading activity or price discovery before the shares are listed. As the GMP is influenced by demand and supply in the unregulated market, it is primarily for informational purposes.

Maxvolt Energy Industries raised ₹15.32 Crores from anchor investors at ₹180 per share, with 8,51,200 shares allocated. The book running lead manager for this IPO is Smart Horizon Capital Advisory Private Limited, while Bigshare Services Private Limited serves as the registrar, and Rikhav Securities Limited acts as the market maker.

The net proceeds from the IPO will be utilized for repayment of borrowings, capital expenditure (for purchasing plant and machinery), and general corporate purposes.

Financial Performance

Maxvolt Energy Industries shows solid revenue growth, with revenues from operations for the year ending September 30, 2024, totaling ₹4,108.51 Lakh, a significant jump from ₹618.32 Lakh in 2022. The EBITDA for FY2024 stands at ₹617.67 Lakh, up from ₹19.34 Lakh in 2022. The Profit After Tax (PAT) for FY2024 is ₹477.02 Lakh, a strong increase from ₹1.42 Lakh in FY2022.

Maxvolt Energy's key performance indicators include a pre-issue EPS of ₹7.07 and a post-issue EPS of ₹4.78 for FY24. The pre-issue P/E ratio is 25.46x, while the post-issue P/E ratio rises to 37.68x, compared to the industry P/E ratio of 89x, suggesting the IPO is reasonably priced.

The company’s ROCE for FY24 is 39.46%, ROE is 85.41%, and RoNW is 45.09%, indicating efficient use of capital and strong returns for shareholders.

Maxvolt Energy IPO Outlook

While Maxvolt Energy Industries has demonstrated steady growth in revenue and profits, the GMP remains flat, signaling limited potential for listing gains. The IPO's P/E ratio is relatively high, making it a fairly priced investment. Therefore, based on the financial performance and market conditions, investors are advised to avoid the IPO for short-term gains and consider long-term investment if interested in the growth of the lithium battery and EV markets.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Ajax Engineering, Chandan Healthcare..

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