The highly anticipated Yash Highvoltage SME IPO has officially opened for bidding, attracting significant attention in the market.
The IPO is set to close on December 16, with shares priced between Rs 138-146 apiece, targeting a listing on the BSE SME platform.
The proceeds aim to fund the establishment of a new factory specializing in transformer bushing production, a critical component for the energy sector.
Here’s everything investors need to know about the Yash Highvoltage IPO:
1. IPO Size and Structure
- Total Issue Size: Rs 110 crore.
- Breakdown:
- Fresh equity issue of 64.05 lakh shares.
- Offer for Sale (OFS) worth Rs 16.5 crore.
- Lot Size: Investors can bid for a minimum of 1,000 shares in one lot.
2. Price Band and GMP
- Price Band: Rs 138-146 per share.
- Grey Market Premium (GMP): Shares are trading at a Rs 139 premium, indicating an 89% premium over the issue price in the unlisted market.
3. About Yash Highvoltage
Yash Highvoltage specializes in manufacturing and distributing a wide range of transformer bushings, including:
- Oil Impregnated Paper (OIP) condenser bushings.
- Resin Impregnated Paper (RIP) bushings.
- High Voltage and High Current bushings.
- Wall and Oil-to-Oil bushings.
4. Industry Overview
The transformer bushing industry, particularly RIP bushings, has seen significant growth.
- Market Share: RIP bushings hold a 61.9% share in the global transformer bushing market (CY24).
- Demand Drivers: Increased customer preference for RIP bushings due to their efficiency and durability.
5. Financial Highlights
- Revenue (as of June 2024): Rs 27 crore.
- Net Profit: Rs 3.12 crore.
These numbers highlight steady growth, but the IPO funds are pivotal for scaling operations.
6. Purpose of the IPO
The company plans to utilize the proceeds for:
- Setting up a new factory to produce RIP/RIS transformer condenser bushings.
- General corporate purposes.
7. Key Stakeholders and Issue Structure
- Lead Manager: Indorient.
- Registrar: Bigshare Services.
- Investor Allocation:
- 50% reserved for Qualified Institutional Buyers (QIBs).
- 35% for retail investors.
- 15% for Non-Institutional Investors (NIIs).
8. Important Dates
- IPO Open Date: December 12, 2024.
- IPO Close Date: December 16, 2024.
- Final Allotment Date: December 17, 2024.
- Listing Date: Expected on December 29, 2024.
Expert Insights and Risks
- Opportunities:
- High demand for transformer components, especially in the renewable energy sector.
- Strong market position in a niche segment.
- Risks:
- Competitive market dynamics.
- Reliance on a single industry vertical (transformer bushings).
Conclusion
Yash Highvoltage’s SME IPO presents a promising opportunity for investors, with a strong GMP suggesting robust market interest.
While the company’s focus on the growing transformer bushing segment is encouraging, potential investors should evaluate the risks associated with industry-specific dependence.
Keep an eye on the allotment and listing dates for potential gains in the short term and a long-term stake in this niche player.
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