HVAX Technologies shares fall 5% after making tepid debut at 6% premium on NSE SME platform

Shares of small and medium enterprise (SME) HVAX Technologies Ltd made a lacklustre trading debut on Monday, October 7, listing at just around 6% premium on the NSE Emerge platform.

The HVAX Technologies stock opened the session at ₹486, up 6.1% compared to its initial public offering (IPO) price of ₹458 apiece. Within minutes of the opening of the session, the share price rose as much as 4.5% from its opening level to hit the day’s high of ₹508 apiece.

As the minimum bid quantity to apply for the HVAX Technologies IPO was 300 shares, bidders who were allotted the company’s shares in the primary issue would be sitting on listing gains of at least ₹8,400 (₹28 x 300) per lot as soon as trading began in the stock.

HVAX Technologies IPO details

The ₹33.53-crore book-building public offer of HVAX Technologies was open for subscription for investors from September 27 till October 1. The issue received a decent response during the three-day bidding period. The IPO was subscribed more than 34 times, with the company receiving bids for 1.67 crore shares compared with almost 4.9 lakh shares on offer.

The non-institutional investor (NII) segment was the most subscribed, at nearly 78 times. The retail portion was overbooked almost 27 times, while the qualified institutional buyers (QIB) category was overbooked 14 times.

The HVAX Technologies IPO was a 100% book-built issue consisting entirely of a fresh issuance of 7.32 lakh shares with a face value of ₹10 each, with no offer-for-sale (OFS) component.

The price band for the IPO was set at ₹435 to ₹458 per share. The lot size, or the minimum bid quantity, for an application was 300 shares.

Ahead of the launch of the IPO, HVAX Technologies had also raised ₹9.48 crore in its anchor investor round. The board of directors in its meeting held on September 26 had allocated 2.07 lakh shares to three anchor investors at a price of ₹458 apiece. The investors included Saint Capital Fund, AI Maha Investment Fund PCC and Minerva Ventures Fund.

The company also announced earlier that it proposed to use the net proceeds from the issue to fund its working capital requirements and for general corporate purposes.

Established in 2010, HVAX Technologies is a specialist in building controlled environments and cleanrooms. The company has built infrastructure for biotech facilities, hospitals, and pharmaceutical facilities in over 15 countries worldwide.

It provides turnkey engineering, procurement, and execution services for projects, covering the design, engineering, and consulting aspects.

For the financial year 2023-24, HVAX Technologies’ revenue increased 12% to ₹107.4 crore compared with ₹96.1 crore in 2022-23. Profit after tax (PAT), however, surged by a much sharper 80% to ₹9.4 crore in FY24 compared to ₹5.2 crore in FY23.