Delta Autocorp shares hit 5% upper circuit after listing at nearly 35% premium on NSE SME

Electric vehicle maker Delta Autocorp made a strong debut with its shares listing at a premium of nearly 35% on the NSE SME platform on Tuesday, January 14.

The stock started trading at ₹175 per share, up by 34.61% over the issue price of ₹130 per share. Soon after listing, the stock rallied as much as 5% to hit the upper circuit limit at ₹183.75 apiece on the NSE.

More than 9.34 lakh equity shares changed hands in early trade. The total turnover stood at ₹16.54 crore. The market valuation of the company touched ₹280.95 crore.

At the listing price of ₹175 per share, the value of a single lot of shares bagged by investors in the IPO share allotment was ₹1,75,000 (₹175 x 1,000).

IPO investors could have made a profit of ₹45,000 compared to the minimum investment of ₹130,000 for a single lot size of 1,000 shares.

Delta Autocorp IPO details

Delta Autocorp IPO was a book-building offer aimed at raising ₹54.6 crore. The NSE SME issue was open for bidding from January 7 to January 9.

During the three-day bidding period, the IPO received applications for 93.62 crore shares against 27.36 lakh shares on offer, leading to an overall subscription of nearly 342 times.

The retail portion of the IPO was booked 314 times, with bids for more than 43 crore shares against 13.68 lakh shares on offer. The Non-Institutional Investors (NIIs) applied for 36.67 crore shares against 5.87 lakh shares set aside for the category. The NIIs’ portion was booked 624 times. The Qualified Institutional Buyers (QIBs) booked their category 178 times with bids for 13.95 crore shares compared to 7.81 lakh shares on offer.

The West Bengal-based Delta Autocorp produces and sells electric two-wheelers and three-wheelers.

The company operates under the "Deltic” brand. It primarily focuses on B2B operations and offers its electric vehicles through a wide network of dealers. The company’s distribution network comprises more than 300 dealers across 25 states and Union Territories.

The company plans to use the IPO proceeds to set up an electric three-wheeler fabrication and painting plant. It will also invest in new product development and finance working capital requirements. The company will invest ₹4.61 crore in an electric three-wheeler fabrication and painting unit. Around ₹21.32 crore will be allocated for new product development and ₹11.46 crore for meeting working capital needs.

Delta Autocorp reported a revenue from operations of ₹45.17 crore from April 1 to October 31, 2024. Its net profit was ₹4.8 crore during the seven-month period of FY25.

The revenue from operations stood at ₹81 crore in FY 2023-24 compared to ₹80 crore in the year ended on March 31, 2023. Its net profit stood at ₹8.22 crore in FY24 against ₹5.13 crore in the preceding financial year.