Wol 3D India Limited, a prominent player in the 3D Printing industry, has launched its Initial Public Offering (IPO), providing a unique opportunity for investors. The company specializes in high-quality 3D printing solutions that enable easier prototyping for various sectors, including manufacturing, education, engineering, architecture, fashion designing, and medical fields. With cutting-edge technology, Wol 3D bridges the gap between ideation and manufacturing, offering cost-effective and innovative services.

IPO Details

Wol 3D India Limited’s IPO is a Book Built Issue amounting to ₹25.56 Crores, consisting of a Fresh Issue of 14.52 Lakh shares valued at ₹21.78 Crores, and an Offer for Sale of 2.52 Lakh shares worth ₹3.78 Crores. The subscription window for this IPO opened on September 23, 2024, and closes on September 25, 2024. The allotment date is expected to be September 26, 2024, with the shares listed on the NSE SME by September 30, 2024.

The price band for the Wol 3D IPO is set between ₹142 to ₹150 per equity share, with a minimum lot size of 1,000 shares. Retail investors must invest at least ₹1,50,000, while High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots (2,000 shares), amounting to ₹3,00,000.

The book-running lead manager for this issue is Hem Securities Limited, and Bigshare Services Private Limited serves as the registrar. Hem Finlease Private Limited is the sole Market Maker for the Wol 3D IPO.

Market Sentiment and GMP

As of 11:26 AM on September 23, 2024, the Wol 3D IPO has received strong demand, with a subscription rate of 3.04 times on the first day. The Grey Market Premium (GMP) for Wol 3D shares is estimated to be in the range of ₹70 to ₹75, indicating potential listing gains of 45%-50%. However, it's important to note that the GMP is based on unorganized market activity and should not be considered a definitive indicator of the stock's future performance.

Financial Performance

Wol 3D India Limited has demonstrated solid growth over the past few years. The company's revenue in Fiscal 2024, 2023, and 2022 was ₹4,001.43 Lakhs, ₹2,371.32 Lakhs, and ₹2,037.03 Lakhs, respectively. The EBITDA for the same period was ₹694.37 Lakhs, ₹355.55 Lakhs, and ₹113.28 Lakhs, respectively. The Profit After Tax (PAT) figures were ₹503.30 Lakhs in Fiscal 2024, ₹240.56 Lakhs in Fiscal 2023, and ₹84.42 Lakhs in Fiscal 2022.

The company's pre-issue EPS stands at ₹10.07, while the post-issue EPS is estimated at ₹7.80. The pre-issue P/E ratio is 14.89x, and the post-issue P/E ratio is 19.23x, making the IPO competitively priced in the market. Wol 3D also boasts a Return on Capital Employed (ROCE) of 42.50% and a Return on Equity (ROE) of 61.83% for FY24, highlighting the company’s strong financial performance.

Use of IPO Proceeds

The proceeds from the IPO will be directed toward:

₹300.00 Lakhs to repay part of the company's outstanding borrowings.

₹1,450.00 Lakhs to meet working capital requirements.

General corporate purposes.

Conclusion and Recommendation

Given its strong financial performance and the current market demand, Wol 3D India Limited is poised for success. With a competitive pricing structure and a solid Grey Market Premium, the IPO offers significant upside potential. Experts recommend applying for the Wol 3D IPO, both for listing gains and long-term investment.

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