HVAX Technologies makes a strong debut at ₹486, up 6%

HVAX Technologies has made a significant impact on the NSE SME by listing its shares at ₹486, reflecting a 6% premium on their opening day. This debut comes after a successful initial public offering (IPO) subscription period that closed on October 1. With strong demand from investors, HVAX Technologies is poised to make its mark in the share market investment landscape.

Strong IPO subscription numbers

The HVAX Technologies IPO garnered substantial attention, achieving a remarkable subscription rate of 34.16 times by the end of the subscription period. Breaking it down, the retail category saw subscriptions of 26.69 times, while Qualified Institutional Buyers (QIBs) subscribed 14.02 times. Notably, Non-Institutional Investors (NIIs) showed tremendous interest, subscribing 77.92 times. These numbers reflect strong investor confidence and interest in the company.

Impressive grey market premium

Investors were optimistic about the share market investment, as evidenced by the Grey Market Premium (GMP) for HVAX Technologies. Initially fluctuating between ₹0 and ₹15, the GMP recently increased to ₹25, indicating that investors were willing to pay ₹25 more than the issue price in the grey market. This premium suggests high demand for the shares, with investors anticipating a listing price of ₹483—5.46% higher than the upper limit of the issue price, which was ₹458.

Financial highlights and growth strategy

Valued at ₹33.53 crores, the HVAX Technologies IPO consists of a completely new issue of 7.32 lakh shares. The company plans to use the net proceeds from this share market investment for various purposes, including funding working capital requirements and general corporate purposes. Established in 2010, HVAX Technologies provides vital engineering, procurement, and execution services for controlled environments and cleanroom infrastructure tailored for the pharmaceutical and healthcare sectors.

Diverse product offerings

HVAX Technologies boasts a wide array of third-party products that complement its services, including:

• Prefabricated galvanised iron (GI) ducts
• Air handling units
• Chillers
• Building Management Systems (BMS) equipment
• Cleanroom wall panels
• Cleanroom ceiling panels
• Covings
• Riser panels
• Cleanroom doors
• Flooring systems
• Pass boxes
• Air showers
• LT/HT electrical panels

This diverse product line positions HVAX Technologies as a comprehensive solutions provider in its industry.

Strong revenue growth

The company's performance has been notable, with a 12% increase in revenue and an impressive 80% rise in profit after tax (PAT) for the fiscal year ending March 31, 2024, in comparison to the prior financial year. Such growth underscores the company's ability to capitalise on emerging opportunities within the pharmaceutical and healthcare sectors.

Key takeaways

• HVAX Technologies shares debuted at ₹486, showing a 6% premium.
• The IPO achieved an impressive subscription rate of 34.16 times.
• Retail subscriptions reached 26.69 times, QIBs at 14.02 times, and NIIs at 77.92 times.
• The current GMP stands at ₹25, indicating robust market interest.
• Proceeds from the IPO will support working capital and general corporate needs.
• HVAX Technologies has experienced significant growth in both revenue and profits.

The successful launch of HVAX Technologies highlights the growing opportunities in share market investment, particularly in the healthcare and pharmaceutical sectors, making it a noteworthy development for investors.