WOL 3D India Limited, a leading provider of 3D printing solutions in India, has launched its Initial Public Offering (IPO), a book-built issue amounting to ₹25.56 Crores. This IPO includes a fresh issue of 14.52 Lakh Shares valued at ₹21.78 Crores and an Offer for Sale of 2.52 Lakh Shares totaling ₹3.78 Crores. The subscription period began on September 23, 2024, and will close on September 25, 2024. The allotment of shares is scheduled for September 26, 2024, and shares are expected to list on the NSE SME platform on September 30, 2024.

WOL 3D India Limited is a pioneering player in 3D printing solutions, offering services that cater to various sectors including manufacturing, education, engineering, architecture, interior design, fashion, product design, and healthcare (including medical and dental applications). The company's mission is to bridge the gap between ideation and manufacturing by providing cost-effective and high-quality 3D printing solutions. By leveraging cutting-edge technology, WOL 3D has emerged as a crucial enabler of rapid prototyping and product development, significantly reducing the time from concept to market.

Key Details of the WOL 3D IPO:

The issue price band for the IPO is set between ₹142 and ₹150 per equity share, with a minimum lot size of 1,000 shares, meaning retail investors need to invest a minimum of ₹1,50,000. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is two lots (2,000 shares), amounting to ₹3,00,000.

The lead manager for the issue is Hem Securities Limited, while Bigshare Services Private Limited acts as the registrar. The sole market maker for the IPO is Hem Finlease Private Limited.

Financial Performance:

WOL 3D India has demonstrated consistent financial growth over the past three years. In Fiscal 2024, the company reported revenues of ₹4,001.43 Lakhs, a significant increase from ₹2,371.32 Lakhs in Fiscal 2023, and ₹2,037.03 Lakhs in Fiscal 2022. The company’s EBITDA has also grown impressively, from ₹113.28 Lakhs in FY22 to ₹355.55 Lakhs in FY23, and further to ₹694.37 Lakhs in FY24.

Profit after Tax (PAT) for the same period has risen from ₹84.42 Lakhs in Fiscal 2022 to ₹240.56 Lakhs in Fiscal 2023, and reached ₹503.30 Lakhs in Fiscal 2024. This robust growth is further supported by the company’s pre-issue EPS of ₹10.07 and post-issue EPS of ₹7.80.

In terms of valuation, the pre-issue P/E ratio stands at 14.89x, while the post-issue P/E ratio is 19.23x. The company also boasts a strong Return on Capital Employed (ROCE) of 42.50% and Return on Equity (ROE) of 61.83% for Fiscal 2024, showcasing its high operational efficiency and profitability.

Grey Market Premium (GMP) Insights:

As of September 23, 2024, the Grey Market Premium (GMP) for the WOL 3D India Limited IPO is estimated to be in the range of ₹70 to ₹75 per share. This indicates potential listing gains of 45% to 50%, reflecting strong demand for the IPO in the grey market. However, investors should exercise caution, as GMP trading is speculative and not an official indicator of post-listing performance.

IPO Subscription Status:

As of 11:26 AM on September 23, 2024, the WOL 3D India IPO has been subscribed 3.04 times on its first day of the subscription period. Investors can check the real-time subscription status on the NSE SME platform.

Anchor Investors:

The company has successfully raised ₹7.26 Crores from Anchor Investors by issuing 4,84,000 shares at ₹150 per share, reinforcing confidence in the company’s potential. The equity shares allocated to anchor investors are part of the Qualified Institutional Buyers (QIBs) reservation portion.

Objectives of the IPO:

WOL 3D intends to utilize the proceeds from the fresh issue for the following purposes:

Repayment of certain outstanding borrowings: ₹300.00 Lakhs.

Meeting working capital requirements: ₹1,450.00 Lakhs.

General corporate purposes.

Allotment and Listing Details:

Investors can check the allotment status for the WOL 3D India IPO on September 26, 2024, on the registrar’s website by entering their application number, PAN, or DP Client ID. The company’s shares are expected to list on the NSE SME platform on September 30, 2024.

Recommendation:

Based on WOL 3D’s financial performance, growth prospects, and strong market presence in the 3D printing industry, the IPO is recommended for both listing gains and long-term investment. The company's strategic focus on innovation and expansion in high-growth sectors makes it a compelling investment opportunity.

Disclaimer: This review is for educational purposes only and should not be considered financial advice. Investors should consult with a professional advisor before making any investment decisions.

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