Emmforce Autotech IPO presents an opportunity for investors to engage in the growth trajectory of a prominent player in the drivetrain parts manufacturing sector. Here’s a comprehensive breakdown of the IPO:
**IPO Overview:**
– Emmforce Autotech IPO is a book-built issue valued at Rs 53.90 crores, comprising an entirely fresh issue of 55 lakh shares.
– Subscription period: April 23, 2024, to April 25, 2024.
– Allotment date: Expected on Friday, April 26, 2024.
– Listing Exchange: BSE SME
– Price band: Rs 93 to Rs 98 per share
– Minimum lot size: 1200 shares
**Key Entities:**
– Book Running Lead Manager: Beeline Capital Advisors Pvt Ltd
– Registrar: Link Intime India Private Ltd
– Market Maker: Spread X Securities
**Reservation Details:**
– QIB Shares Offered: Not more than 50.00% of the Net offer
– Retail Shares Offered: Not less than 35.00% of the Offer
– NII (HNI) Shares Offered: Not less than 15.00% of the Offer
**Timeline:**
– IPO opens: April 23, 2024
– IPO closes: April 25, 2024
– Listing Date: Tuesday, April 30, 2024
**Promoter Holding:**
– Promoters: Mr. Ashok Mehta, Mrs. Neetu Mehta, and Mr. Azeez Mehta
– Pre-Issue Shareholding: 100.00%
**About Emmforce Autotech Limited:**
– Founded in 2012, Emmforce Autotech Limited is a manufacturer and exporter specializing in drivetrain parts for niche vehicles.
– Product Portfolio: The company offers a wide array of drivetrain components including differential housings, locks, covers, 4WD locking hubs, axles, shafts, and more.
– Competitive Strengths: Emmforce Autotech prides itself on engineering excellence, one-stop solutions, stringent quality standards, strong customer relationships, and a scalable business model.
– Manufacturing Facility: Located in Baddi, Himachal Pradesh.
– Employee Strength: As of October 31, 2023, the company had a workforce of 128 individuals.
**Financial Performance:**
– Revenue: Emmforce Autotech recorded revenues of Rs 4,790.31 lakhs for the period ended October 31, 2023.
– Profit After Tax (PAT) Margin: PAT margin stood at 8.42%.
**Key Performance Indicators:**
– Market Capitalization: Rs 200.9 crores
– Return on Net Worth (RoNW): 2.83%
– Price-to-Book Value (P/BV) ratio: 9.52
– EPS and P/E Ratio: Pre-IPO EPS is Rs 2.93, and post-IPO EPS is Rs 4.28. The P/E ratio stands at 33.5 pre-IPO and 22.9 post-IPO.
**Objects of the Issue:**
The net proceeds from the IPO will be utilized for:
1. Investment in a Subsidiary Company, Emmforce Mobility Solutions Private Limited (EMSPL), for working capital and margin money.
2. Meeting the working capital requirements of the company.
3. General corporate purposes to support ongoing operations and expansion initiatives.
**Prospectus Access:**
– Emmforce Autotech IPO DRHP
– Emmforce Autotech IPO addendum to DRHP
– Emmforce Autotech IPO RHP
Investors are encouraged to delve into the detailed prospectus for a comprehensive understanding of the offering and its prospects.
