Yash Highvoltage IPO Listing: Stock lists at 90% premium on BSE SME

Yash Highvoltage IPO Listing

Yash Highvoltage IPO Listing: ₹1,46,000 Profit Per Lot as Shares Surge to Upper Circuit, Doubling Investor Money

The Yash Highvoltage IPO made a remarkable debut on the BSE SME today, delivering stellar returns to investors, even as the broader market showed signs of weakness.

The shares of Yash Highvoltage, a company that manufactures transformer bushings, were listed at ₹277.40, representing a 90% gain over the IPO price of ₹146.00.

As if that wasn’t impressive enough, the stock quickly reached its upper circuit limit of ₹291.25, effectively doubling the money of IPO investors by the end of the first trading day. This stunning performance highlights the strong demand and investor confidence in the company’s growth prospects.

Yash Highvoltage IPO: A Spectacular Market Debut

Yash Highvoltage’s ₹110.01 crore IPO opened for subscription from December 12-16, 2023, and was met with an overwhelming response from investors.

The company’s shares were offered at an issue price of ₹146.00 per share. Upon listing today, the stock opened at ₹277.40, delivering an immediate 90% gain to IPO investors.

The stock didn’t stop there—it surged to its upper circuit limit of ₹291.25, effectively doubling the money of investors who subscribed to the IPO.

This strong debut is especially notable considering the broader market’s overall weakness on the same day.

Despite a generally bearish sentiment in the equity markets, Yash Highvoltage’s IPO listing was a bright spot, offering investors a rare opportunity for substantial gains.

Subscription Details: Strong Investor Interest

The Yash Highvoltage IPO saw massive investor interest across all categories. The issue was oversubscribed 181.82 times, indicating robust demand for the company’s shares. Here’s a detailed breakdown of the subscription figures:

• Qualified Institutional Buyers (QIBs): The QIB portion was oversubscribed 123.7 times, reflecting strong confidence from institutional investors.
• Non-Institutional Investors (NIIs): The NII portion saw even higher demand, with a 330.03 times oversubscription, highlighting the enthusiasm among high-net-worth individuals and other institutional investors.
• Retail Investors: The retail portion was also oversubscribed, with a subscription rate of 151.52 times, demonstrating widespread interest from individual investors.

The massive demand for the IPO reflects investor optimism about the company’s growth prospects, even amid a challenging market environment.

The company’s strong financial performance, future growth plans, and solid track record played a significant role in attracting such significant investor interest.

IPO Structure and Use of Proceeds

The ₹110.01 crore IPO was a mix of fresh issue and Offer for Sale (OFS). A total of ₹93.51 crore was raised through the issuance of new shares, while 11.30 lakh shares with a face value of ₹5 were sold through the Offer for Sale window by existing shareholders.

The funds raised through the new issue will primarily be used for setting up a new manufacturing facility for resin impregnated paper (RIP) and resin impregnated synthetic transformer condenser grade bushings.

This expansion is expected to significantly increase the company’s production capacity and improve its market position.

The remaining funds will be utilized for general corporate purposes, including working capital and debt reduction, helping to strengthen the company’s financial position.

About Yash Highvoltage: A Leader in Transformer Bushings

Founded in June 2002, Yash Highvoltage has carved a niche for itself in the highly specialized field of transformer bushings.

These bushings are essential components used in transformers to allow the passage of electrical current between the transformer and external circuits, while also ensuring the safe insulation of high-voltage electrical systems.

The company’s manufacturing facility is located in Vadodara, Gujarat, and it has an annual production capacity of 7,000 units.

This includes 3,700 units of oil-immersed paper bushings, 3,000 units of resin impregnated paper bushings, and 300 units of high-current bushings.

These products are critical for ensuring the efficient functioning of transformers used in power generation, transmission, and distribution.

Yash Highvoltage has demonstrated strong financial performance over the years. In the financial year 2022, the company reported a net profit of ₹8.71 crore.

This figure rose to ₹11.42 crore in FY 2023 and is expected to increase to ₹12.06 crore in FY 2024. Over the same period, the company’s revenue grew at a compounded annual growth rate (CAGR) of over 29%, reaching ₹109.12 crore in FY 2024.

In the first quarter of FY 2024-25 (April–June 2024), Yash Highvoltage achieved a net profit of ₹3.13 crore and a revenue of ₹27.78 crore, indicating continued growth momentum.

The Financial Health of Yash Highvoltage

Yash Highvoltage has consistently demonstrated strong profitability and revenue growth. In addition to increasing profits, the company has maintained solid cash flow and a healthy balance sheet, making it an attractive option for investors seeking stable, growth-oriented companies.

The strong growth trajectory in both profits and revenues is supported by the company’s efforts to expand its product offerings and manufacturing capabilities.

The new plant, funded by the IPO proceeds, will further enhance its market position and ability to meet the growing demand for transformer bushings in the global market.

Why Did Yash Highvoltage IPO Attract Such Strong Demand?

Several factors contributed to the overwhelming demand for the Yash Highvoltage IPO. First, the company operates in a niche sector with a growing demand for transformer bushings, driven by the expanding power infrastructure in India and abroad.

The transition to renewable energy sources, as well as the growth in electric vehicles and high-tech industries, is expected to drive further demand for electrical components like transformer bushings.

Second, the company has consistently demonstrated solid financial growth and operational efficiency, making it an attractive investment option. Investors were drawn to its strong profit margins, expansion plans, and well-established market presence.

Lastly, the company’s commitment to innovation and capacity expansion through the new factory played a significant role in instilling confidence among investors, signaling the company’s readiness to capitalize on future opportunities.

Final Remarks: A Promising Future for Yash Highvoltage

The Yash Highvoltage IPO has been a huge success, with shares doubling in value on the first day of listing.

Investors who participated in the IPO have seen an immediate return of 90%, and the stock’s ability to hit the upper circuit limit further underscores the company’s strong market debut.

With a robust business model, consistent financial growth, and a clear roadmap for future expansion, Yash Highvoltage is well-positioned for long-term success.

The company’s focus on increasing production capacity and its strong presence in the transformer bushing market will likely continue to drive growth in the coming years.

For investors who got in early, today’s IPO listing was a windfall. As Yash Highvoltage moves forward with its expansion plans, the company is expected to benefit from increasing demand for its products, both in India and globally.

This promising growth trajectory, coupled with solid financials, makes Yash Highvoltage an intriguing investment for the future.