Emmforce Autotech IPO: Stellar debut with 90% premium on BSE SME platform
Upstox
3 min read • Updated: April 30, 2024, 10:56 AM
Summary
Emmforce Autotech IPO: Emmforce Autotech Ltd had a remarkable market debut on the BSE SME platform, with its shares listing at a premium of 90% to the issue price. The stock opened at ₹186.20 per share, significantly higher than the IPO price of ₹98 apiece. Trading activity saw strong investor interest, with the share price surging to ₹195.51 and total turnover reaching ₹14.07 crore.
Emmforce Autotech IPO: Shares of automotive component maker made a stellar market debut on Tuesday, April 30, with the stock listing at a premium of 90% to the issue price on the SME platform of BSE.
Emmforce Autotech Ltd shares started trading at ₹186.20 per share against the issue price of ₹98 apiece.
Shares of the company rallied further 5% to hit a high of ₹195.51 apiece on the BSE SME platform on strong buying by investors. More than 7.48 lakh equity shares changed hands in the first five minutes of trade. Total turnover stood at ₹14.07 crore while the market valuation of the company surpassed ₹400 crore.
Emmforce Autotech is in the business of manufacturing niche automotive drivetrain parts like Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, and various differential forged parts primarily for 4-wheel Drive and performance racing vehicles.
Emmforce Autotech has been exporting its products since its inception. It has emerged as a one stop shop for cost competitive drivetrain parts. The company’s in-house manufacturing and implementation competencies include forging, machining, fabrications, heat treatment, surface finish, logistics, quality and testing, design and validation.
Emmforce Autotech IPO subscription and other key details
Emmforce Autotech launched its IPO on April 23 to raise ₹53.90 crore from capital markets. The public offer received a strong response from investors and the IPO closed with a whopping subscription of 339 times on April 25.
According to BSE data, bids for 133.29 crore equity shares were received against 39.33 lakh equity shares on offer for subscription.
Non-institutional investors’ category was subscribed the most. Bids for 67.57 crore equity shares were received against 10.59 lakh equity shares on offer, leading to overall subscription of 637.72 times.
Retail investors placed bids for 48.94 crore equity shares against 18.28 lakh equity shares on offer. The retail portion was overbooked by 267.62 times.
Qualified institutional investors placed bids for 16.78 crore equity shares against 10.45 lakh shares on offer for subscription. The QIB portion was booked 160.58 times.
Emmforce Autotech announced the share allotment to successful bidders on April 26.
The IPO of the Haryana-based company comprised a fresh issue of 54.99 lakh equity shares. The company fixed the IPO price at ₹93-98 per share with a minimum lot size of 1200 shares.
The company will use the IPO proceeds for the working capital needs and the rest of funds for general corporate purposes.
Emmforce has proposed to invest ₹10 crore in subsidiary company, Emmforce Mobility Solutions Private Limited (EMSPL), for meeting the requirement of working capital needs.
The subsidiary company is setting up the plant at Baddi in Solan district of Himachal Pradesh.