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  • Automotive niche firm Emmforce IPO opens April 23, 2024; price band fixed at Rs. 93-98

    Published on April 19, 2024

     Emmforce Autotech Limited (“The Company”), a leading automotive niche components manufacturer in India, announced that its initial public offering (IPO) will open on Tuesday, April 23, 2024. The anchor portion will be opened on Monday, April 22, 2024, and the issue 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.

    Beeline Capital Advisors Private Limited is the sole Book Running Lead Manager, and Link Intime India Private Limited is the Registrar for the issue.

    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.

    According to the RHP document, the company propose to utilize the net proceeds from the IPO to invest in its subsidiary company – Emmforce Mobility Solutions Private Limited (EMSPL) for setting up a new plant at Jharmajri, Baddi in Himachal Pradesh; meet the company’s working capital requirement; and for general corporate purpose. EMSPL manufactures Rotavator Blades and Steel Forgings for automotive and engineering industry.

    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 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.

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