WOL 3D India Limited, a company known for offering innovative 3D printing solutions, made a robust debut on the NSE SME platform on Monday, September 30, 2024. The company’s shares were listed at ₹180 per share, marking a 20% premium over the IPO issue price of ₹150. The strong opening reflects high investor confidence in the company, which provides cutting-edge 3D printing solutions catering to a diverse range of industries including manufacturing, education, engineering, architecture, fashion designing, product design, medical, and dental sectors.

Overview of WOL 3D India IPO

The WOL 3D IPO was an eagerly awaited Book Built Issue, with a total size of ₹25.56 crores. The IPO consisted of a fresh issue of 14.52 lakh shares worth ₹21.78 crores and an offer for sale (OFS) of 2.52 lakh shares amounting to ₹3.78 crores. The price band for the IPO was set between ₹142 and ₹150 per equity share, with a minimum lot size of 1,000 shares. Retail investors were required to make a minimum investment of ₹1,50,000, while High-Net-Worth Individuals (HNIs) had to invest a minimum of 2 lots (2,000 shares), amounting to ₹3,00,000.

The subscription period for the IPO was open from September 23, 2024, to September 25, 2024, and the allotment of shares was finalized on September 26, 2024. The shares were officially listed on the NSE SME platform on September 30, 2024.

Hem Securities Limited acted as the book-running lead manager for the IPO, while Bigshare Services Private Limited handled the registrar responsibilities. Hem Finlease Private Limited served as the sole market maker for WOL 3D’s IPO, ensuring liquidity and trading stability.

WOL 3D IPO Grey Market Premium

The Grey Market Premium (GMP) for WOL 3D India Limited’s IPO was a clear indicator of high investor demand. The GMP for the shares was expected to range between ₹70 and ₹75, signaling potential listing gains of 45% to 50%. While the Grey Market is unofficial and does not directly affect stock prices on the formal exchanges, it often provides insights into market sentiment and investor interest prior to listing.

The actual listing price of ₹180, which represented a 20% premium, fell short of the expected 50% premium but still demonstrated significant demand for the company's shares.

IPO Subscription and Anchor Investors

The WOL 3D IPO saw healthy demand during its subscription period, with the IPO being subscribed 3.04 times by the close of the first day. This level of subscription reflects strong investor interest across categories, particularly among Qualified Institutional Buyers (QIBs) and retail investors.

In addition, WOL 3D India raised ₹7.26 crores from Anchor Investors, pricing the shares at ₹150 each. A total of 4,84,000 equity shares were allocated to anchor investors, which include a mix of domestic and international institutions. The involvement of anchor investors is a testament to the market confidence in WOL 3D’s business model and growth potential.

Business Model and Financial Performance

WOL 3D India Limited is a leader in the 3D printing solutions space, providing cost-effective and innovative technologies that cater to various industries such as:

Manufacturing

Engineering

Education

Architecture

Interior design

Fashion design

Medical and dental fields

The company aims to bridge the gap between ideation and manufacturing by providing high-quality and cost-efficient solutions using state-of-the-art 3D printing technology. With a strong focus on making prototyping easier and more accessible, WOL 3D has emerged as a critical player in industries that require rapid, accurate, and efficient prototyping capabilities.

WOL 3D was founded by first-generation promoters Rahul Virendra Chandalia, Saloni Rahul Chandalia, Pradeep Shripal Jain, and Swati Pradeep Jain. Their collective experience in the industry positions the company for sustained growth and innovation in the 3D printing sector.

Financially, the company has shown consistent growth in recent fiscal years:

Revenue for FY24 was ₹4,001.43 lakhs, up from ₹2,371.32 lakhs in FY23 and ₹2,037.03 lakhs in FY22.

EBITDA for FY24 was ₹694.37 lakhs, compared to ₹355.55 lakhs in FY23 and ₹113.28 lakhs in FY22.

Profit after Tax (PAT) for FY24 was ₹503.30 lakhs, compared to ₹240.56 lakhs in FY23 and ₹84.42 lakhs in FY22.

With a pre-issue EPS of ₹10.07 and a post-issue EPS of ₹7.80, WOL 3D’s pre-issue P/E ratio stands at 14.89x, while the post-issue P/E ratio is 19.23x, compared to industry peers. The company's Return on Capital Employed (ROCE) for FY24 was an impressive 42.50%, while the Return on Equity (ROE) stood at 61.83%, both indicators of strong operational efficiency and profitability.

Utilization of IPO Proceeds

The proceeds from the WOL 3D IPO will be utilized for various strategic initiatives aimed at strengthening the company’s operations and balance sheet:

₹300 lakhs will be used for repayment of certain borrowings.

₹1,450 lakhs will be allocated to meet working capital requirements.

A portion of the funds will be used for general corporate purposes, helping to fuel the company’s growth plans and expansion into new markets.

Investment Outlook and Risk Factors

WOL 3D India operates in a rapidly growing and evolving industry where technological advancements are driving increased demand for 3D printing solutions. The company's ability to provide cost-effective and high-quality services has positioned it well to capitalize on growth opportunities across multiple sectors.

However, potential investors should consider several risk factors:

Technological changes could disrupt the 3D printing industry, necessitating constant innovation and adaptation.

The company’s reliance on external suppliers for 3D printing materials and equipment could impact its profit margins.

The competitive landscape is evolving, and the entry of new players could intensify competition.

Despite these risks, WOL 3D’s financial performance, market position, and strong demand for its IPO suggest that the company is well-positioned for long-term growth. For risk-tolerant investors, WOL 3D offers an exciting opportunity, whether for short-term listing gains or long-term investment.

Conclusion

The WOL 3D India IPO has made a strong debut on the NSE SME platform, listing at a 20% premium over the issue price. With its cutting-edge technology, diverse applications, and strong financial performance, WOL 3D is poised to become a major player in the rapidly expanding 3D printing industry. Investors should monitor the company’s post-listing performance and consider its long-term growth potential in an increasingly tech-driven market.

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