Emmforce Autotech IPO opens on April 23: Check subscription, price band, lot size and listing date

Emmforce Autotech IPO: The initial public offering (IPO) of automotive parts manufacturer Emmforce Autotech Limited opens for subscription on Tuesday, April 23.

Emmforce Autotech Ltd IPO comprises a fresh issue of 54.99 lakh shares. The company aims to raise ₹ 53.9 crore from the market. Shares of Emmforce Autotech are scheduled to be listed on the small and medium enterprises (SME) platform of BSE.

If you are interested in the Emmforce Autotech IPO, here are key details that you should know.

Emmforce Autotech IPO dates

Emmforce Autotech IPO subscription will be available for bidding between April 23 and April 25. Post this, the company is expected to finalise the basis of share allotment in the IPO on Friday, April 26. The credit of shares into the demat account of successful bidders is scheduled for Monday, April 29 along with the initiation of refunds for non-allottees.

Emmforce Autotech shares are expected to be listed on the BSE SME platform on Tuesday, April 30.

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Emmforce Autotech IPO issue size

Emmforce Autotech is a 100% book-built issue consisting of 54.99 lakh shares including a market maker allocation of 2.76 lakh shares. Spread X Securities is the market maker for the public issue.

Ahead of the subscription, the company conducted an anchor investment round for 15.66 lakh shares. The company raised ₹15.35 crore at ₹98 per share from anchor investors, which included NAV Capital VCC- NAC Capital Emerging Star fund, Persistent Growth Fund - Varsu India Growth Story Scheme 1 and Craft Emerging Market Fund PCC- Citadel Capital Fund.

The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors and 15% of the shares available for subscription for non-institutional investors.

The Panchkula-headquartered company has appointed Beeline Capital Advisors Private Limited as the sole book-running lead manager for the public issue whereas Link Intime India Private Limited serves as the registrar.

Emmforce Autotech promoters – Ashok Mehta, Neetu Mehta and Azeez Mehta – presently hold 100% stake in the company, which will be diluted to 73.17% post the issue.

Emmforce Autotech IPO price band and lot size

Emmforce Autotech IPO price band has been set in the range of ₹93 to ₹98 at a face value of ₹10 per share. Retail investors can submit their bids with a minimum lot size of 1200 shares aggregating to a minimum investment of ₹ 1,17,600 and in multiples thereof. Retail investors can bid for a maximum of one lot in the IPO. High net worth individuals or NII can bid for a minimum of 2 lots or 2,400 shares totalling an investment of ₹2,35,200.

Emmforce Autotech IPO purpose

According to the RHP document, proceeds from the IPO will be used by Emmforce Autotech for investing in its subsidiary company Emmforce Mobility Solutions Private Limited (EMSPL), for setting up a new plant at Himachal Pradesh's Jharmajri. Emmforce Mobility Solutions Private Limited is a manufacturer of rotavator blades and steel forgings.

Further, a portion of the money raised in the public issue will be used for meeting the working capital requirements and general corporate purposes.

About Emmforce Autotech

Emmforce Autotech is a manufacturer and exporter of automotive components and parts for niche vehicles. The company's product portfolio includes 4WD locking hubs, spindles, axles and shafts, gear shifters, yokes, differential spools, differential tools, differential covers and cast differential parts mainly for 4WD and high-performance racing vehicles.

The company reported a total income of ₹ 48.75 crore in FY 2023 compared to ₹71.98 crore in FY 2022. The firm's profit in FY 23 shrunk to ₹43.8 crore from ₹73.2 in the preceding financial year.

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