Maxvolt Energy Industries Ltd, a leading manufacturer and supplier of lithium battery packs for Electric Vehicles, Energy Storage Systems, and Medical Device Batteries, is set to launch its IPO with an issue size of ₹54 Crores. The subscription for the Maxvolt Energy Industries IPO begins on February 12, 2025, and ends on February 14, 2025. The offer includes a fresh issue of 24 lakh shares worth ₹43.2 Crores and an Offer for Sale (OFS) of 6 lakh shares amounting to ₹10.8 Crores. With the IPO price band set between ₹171 and ₹180 per share, the market capitalization of Maxvolt Energy Industries at the upper price band will be ₹196.27 Crores.

The lot size for the IPO is 800 shares, and retail investors must apply for a minimum investment of ₹1,44,000. High-net-worth individuals (HNIs) are required to invest in at least 2 lots, totaling ₹2,88,000. The allotment of shares is expected to be finalized on or around February 17, 2025, with a tentative listing date of February 19, 2025, on the NSE SME.

Maxvolt Energy Industries IPO Subscription and GMP:

As of February 13, 2025, at 2:00 PM, the Maxvolt Energy Industries IPO has been subscribed 0.66 times on the second day of the subscription period. The Grey Market Premium (GMP) for the IPO is currently ₹0, reflecting the company's financial performance. However, investors should note that the GMP is subject to changes based on demand and supply in the unofficial grey market and may not be a true reflection of the listing price. It is for educational purposes only.

Maxvolt Energy Industries IPO Objectives:

The company plans to use the net proceeds from the IPO for the following key objectives:

• ₹2,038.25 Lakhs for the repayment or prepayment of borrowings.
• Funding capital expenditure for purchasing plant and machinery.
• Allocation for general corporate purposes.

Financial Performance and Key Metrics:

Maxvolt Energy Industries has shown significant financial growth, with revenues of ₹4,108.51 Lakhs for the period ending September 30, 2024. The EBITDA for FY24 stands at ₹617.67 Lakhs, reflecting steady profitability. The company's Profit After Tax (PAT) for FY24 is ₹477.02 Lakhs, a significant rise compared to previous years. The company's Return on Equity (ROE) for FY24 is an impressive 85.41%, with a post-issue P/E ratio of 37.68x, which is attractive compared to the industry average of 89x.

The pre-issue P/E ratio stands at 25.46x, suggesting that the IPO is fairly priced based on the company’s growth prospects and industry standards. Maxvolt’s Return on Capital Employed (ROCE) for FY24 is 39.46%, further showcasing its strong operational efficiency.

Maxvolt Energy Industries IPO Review and Expert Opinion:

Considering the financial strength, positive growth trajectory, and the valuation metrics compared to the industry, Maxvolt Energy Industries Ltd appears to be a solid contender in the EV battery market. However, with the GMP showing no immediate listing gain, it might be prudent for investors to approach this IPO with caution.

The company’s leadership team, led by Mr. Bhuvneshwar Pal Singh, Mr. Vishal Gupta, and Mr. Sachin Gupta, brings a wealth of experience in manufacturing, sales, and quality management. Their combined experience and vision have significantly contributed to Maxvolt’s market position and operational success.

Conclusion:

Maxvolt Energy Industries Ltd is positioning itself as a key player in the electric vehicle and energy storage sectors, offering reliable lithium battery solutions. Given the IPO price range, strong financial performance, and IPO objectives, investors can consider evaluating the IPO based on their investment goals and risk tolerance. However, with the GMP at ₹0 and industry volatility, those seeking short-term listing gains may find it prudent to avoid the IPO for now.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipments, 

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

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