• Newly Fresh Issue: Up to 24,00,000 new Equity Shares.

• Offer for Sale (OFS): Up to 6,00,000 Equity Shares will be sold by an existing shareholder, Ms Preeti Gupta.
• Total Shares Offered: Up to 30,00,000 Equity Shares.
• Face Value: ₹10 per share.
• Type: 100% Book Built Issue:
• Proposed Listing: The shares are to be listed under the NSE EMERGE platform (which is basically a platform for small and medium-sized enterprises or SMEs).
• Price Band: ₹171- ₹180 per share.
• Lot Size: 800 per lot.
• Proposed Listing Date: 19th Feb 2025.
• Minimum Application: The minimum application size will be at least ₹1,36,800.

A company mainly goes public (through an IPO) to raise more money for its business expansion, and Maxvolt is no different. It has its specific objectives:

• Repayment of Borrowings: Of the proceeds (₹889.96 Lakhs), a portion will be spent on repaying or prepaying some of the loans that the company has taken, which would reduce the debt burden as well as save interest costs.
• Funding of Capital Expenditure Requirements: A major part of that money (₹2,427.04 Lakhs) will be used to buy new plant and machinery, which implies that Maxvolt intends to increase production capacity.
• General Corporate Purposes: As for the rest of it, it would go for general business purposes. The specific amount for the same has yet to be determined, but it will not be more than 25% of the gross proceeds from the fresh issue.

The main goal is to expand to become a major player in the future of electric vehicles and energy storage, as these require significant financial resources to scale their operations. A portion of the funds being raised will be used to settle extra debt.

All figures in ₹ Lakhs unless otherwise specified.

Maxvolt Energy is in this high-growth electric vehicle (EV) battery industry, which is now on a great upswing around the world. Many contributing factors come to this expansion: 

• Environmental Concerns: Growing awareness of climate change and pollution is among the major things for the whole world moving cleaner.
• Government Initiatives: All countries in the world, including India, give heart to the use of EVs through: 
  • Subsidies and tax benefits 
  • Tightening the emission standards for conventional vehicles 
  • Investments in charging infrastructures 
• India is a market that is very promising. Here, attention is focused on the electrification of optimized four- and three-wheelers (scooters, motorcycles, rickshaws), which are also more affordable and practical for a very big segment of the population. Therefore, the demand for lithium-ion batteries becomes very huge.
• It is also about energy storage beyond vehicles because of much quicker renewable energy matching up with very reliable battery storage. For the most part, home-based (inverters) and business needs are driving the growth of this area.

• Experienced Promoters: The promoters are well-known for their experience and knowledge about this industry.
• Focus on Quality: Maxvolt is certified to ISO 9001:2015 and places a strong emphasis on quality control. 
• Growing EV Market: The market is anticipated to gain impetus and boom over the years with a boost to the booming EV and energy-storage markets in India.
• Adaptable in-house manufacturing: Maxvolt has a flexible manufacturing setup that allows customizing products.
• Strong financial performances: It has an impressive revenue and profit growth over the last few years.
• Established Distribution Network: Maxvolt has a dealer-distributor network and direct tie-ups with OEMs.
• Diverse Range of Products: The company is dealing in a diverse range of products.

• Limited Operating History: Maxvolt is a relatively new-age company (founded in 2019), and thus, it does not have a lengthy track record.

• Dependability on Core Customers: Much of their revenue comes from a handful of major clients, and if they lose one or more of these big clients, their sales could suffer.
• Dependence on Suppliers: They rely on only a select list of suppliers, which give out raw materials, for example, lithium-ion cells that are imported mostly from China. In both cases, this would hamper their enterprise if either of the two-faced disruptions, such as supply shortages or sudden price increases.
• Competition: Battery markets are much more competitive now due to established companies and smaller, unorganized companies.
• Technology Changes: EV battery technology is changing at breakneck speed, and Maxvolt will have to keep pace with it to remain competitive.
• Regulatory Risks: The EV market and, consequently, business at Maxvolt are going to be affected by changes in government policies, rules, or subsidies.
• Raw Material Price Volatility: The fluctuation in raw material prices like lithium would affect the profit margin of the Company.
• Not having any long-term supply agreements: The Company never usually enters into any long-term supply agreements with respect to any of its associated suppliers.
• Outstanding Litigations: The Company has certain outstanding litigation against them, which could adversely affect the business.
• Negative Cash Flows: There were negative cash flows during earlier years for the Company. 
• Higher debt-equity ratio: The Company is higher on the debt-equity ratio and demands a huge flow of cash to pay off debts.