Yash Highvoltage Ltd. is emerging as a leader in the power engineering sector, offering specialized high voltage and high current transformer bushings for both the industrial and utilities markets, not just in India but globally. Known for their innovative products and reliability, Yash Highvoltage has built a strong reputation over decades of performance. The company is now preparing for its IPO, which aims to raise ₹110.00 Crores. This fresh issue comprises 64.05 Lakh shares, worth ₹93.51 Crores, with an additional offer for sale of 11.30 Lakh shares amounting to ₹16.49 Crores.

The subscription period for the Yash Highvoltage IPO is set to open from December 12, 2024, and close on December 16, 2024. The IPO price band is between ₹138 and ₹146 per equity share, with a market capitalization of ₹416.84 Crores at the upper price band. The minimum investment for retail investors is ₹1,46,000 for a lot size of 1,000 shares, while high-net-worth individuals (HNIs) are required to invest ₹2,92,000 for 2 lots (2,000 shares).

Yash Highvoltage IPO Subscription and GMP Insights

The Grey Market Premium (GMP) of Yash Highvoltage IPO shows promising potential listing gains. As of December 13, 2024, the GMP stands at ₹107, indicating a potential listing price of ₹253, which marks a significant 73.63% premium over the issue price of ₹146. This substantial premium suggests strong demand for the shares, making it an attractive investment for those seeking potential listing gains.

As per the IPO subscription status, as of December 16, 2024, the IPO was subscribed 169.17 times on its final day, showcasing high demand and investor interest in the offering. This marks a healthy investor confidence level, particularly in the context of the booming power engineering industry and Yash Highvoltage's market position.

IPO Allotment Process and Financial Overview

The allotment of Yash Highvoltage IPO is expected to be finalized by December 17, 2024, with the listing date anticipated to be on December 19, 2024. Investors can check their allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID.

Yash Highvoltage has demonstrated robust financial growth over the past few years, with its revenues increasing from ₹6,537.90 Lakh in FY2022 to ₹10,912.25 Lakh in FY2023. In FY2024, the company reported a profit after tax (PAT) of ₹1,206.27 Lakh, up from ₹871.23 Lakh in FY2022. The company’s ROCE for FY24 stands at an impressive 44.07%, and RoE is 32.51%, reflecting the company's efficient capital utilization and strong profitability.

The pre-issue EPS of ₹5.45 and the post-issue EPS of ₹4.22 indicate a P/E ratio of 26.79x pre-issue and 34.56x post-issue, which compares favorably against the industry P/E of 194x, suggesting that the IPO is reasonably priced for long-term investment.

Investment Recommendation

Given the solid financials, market leadership in transformer bushings, and strong GMP indications, we recommend investors apply to the Yash Highvoltage IPO for both listing gains and long-term growth. With strong market demand and the company’s solid track record, this IPO presents an exciting investment opportunity.

Key Investment Takeaways:

• Yash Highvoltage offers a robust growth trajectory in the power engineering sector.
• The Grey Market Premium (GMP) signals substantial listing gains.
• Investors should take note of the strong financial performance and favorable pricing compared to industry peers.

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