Emmforce Autotech Limited, India's leading automotive niche components manufacturing company, initial public offering (IPO) is opening today, April 23, 2024 and will conclude on Thursday, April 25, 2024. The company intends to raise approximately Rs. 53.9 crore (at upper price band) from the offering and aims to be listed on BSE SME platform. The price band for the issue has been fixed at Rs. 93 - Rs. 98 per share, and the lot size will be 1,200 equity shares. The company has successfully completed its Anchor book subscription on Monday, raising Rs. 15.34 crore from the sale of 15.66 lakh equity shares at Rs. 98/- each.
The anchor book witnessed participation from leading investors, including BofA Securities Europe SA - ODI, Astorne Capital VCC ARVEN, NAV Capital VCC - NAV Capital Emerging Star Fund, NEGEN Undiscovered Value Fund, Persistent Growth Fund - Varsu India Growth Story Scheme - 1, Craft Emerging Market Fund PCC - Citadel Capital Fund, Moneywise Financial Services Private Limited, LC Radiance Fund VCC and Galaxy Noble Global Opportunities Fund PCC - GNGOF 1 participated in the anchor book subscription.
Bank of America's BofA Securities Europe SA - ODI contributed 19.62% of the total anchor book subscription, while Astorne Capital VCC ARVEN subscribed 14.79%. NAV Capital VCC - NAV Capital Emerging Star Fund and NEGEN Undiscovered Value Fund subscribed 13.10% each, while Persistent Growth Fund - Varsu India Growth Story Scheme - 1 and Craft Emerging Market Fund PCC - Citadel Capital Fund subscribed 9.81% each.
Beeline Capital Advisors Private Limited is the sole Book Running Lead Manager, and Link Intime India Private Limited is the Registrar for the issue.
Emmforce Autotech plans to use the net proceeds of the issue to invest in its subsidiary company, Emmforce Mobility Solutions Private Limited (EMSPL), as equity or debt to meet its working capital and margin money requirements, to meet the working capital requirements of the company, and to fulfill its general corporate purpose.The IPO will comprise a fresh issue of 54,99,600 Equity Shares with a face value of Rs. 10/- through the book-building route. As many as 2.76 lakh equity shares have been reserved for the Market Maker, 7.83 lakh equity shares for NIIs, 26.11 lakh equity shares allocated for QIBs (including Anchor Reservation), and Retail (RII) portion accounts for 18.28 lakh equity shares.
The Panchkula-headquartered company manufactures niche automotive drivetrain parts and its sales comprises majority of exports to six continents, primarily to North America and Asia. Emmforce manufactures a wide range of niche automotive drivetrain parts like Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools and various differential forged / cast parts primarily for 4-wheel Drive and performance racing vehicles. Emmforce operates a manufacturing plant spread across 9,962 Sq Mtr at Baddi in Himachal Pradesh.
Emmforce Autotech was founded by the first-generation automotive industry entrepreneur Ashok Mehta. With over 32 years of rich experience in manufacturing automotive differential and drivetrain parts, Mr. Mehta has been instrumental in determining the company's vision and growth strategies. Though a chartered accountant by education, he authored the world's first book ever written on axle shafts titled "The World Around Axle Shafts".
The company recorded a revenue of Rs. 46.45 crore with a profit (PAT) of Rs. 5.11 crore in the first seven months of the financial year 2023-24, which ended October 31, 2023, compared to a revenue of Rs. 45.69 crore and a profit (PAT) of Rs. 4.38 crore in FY 2022-23. |
