Emmforce Autotech Limited IPO: Date, Price, Strength and Risks

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Emmforce Autotech Limited will go public soon with the launch of its IPO. The exporter and manufacturer of drivetrain parts of racing vehicles aim to raise around Rs. 53.90 crores. The company has a plan to utilise the raised funds from the IPO for meeting the working capital requirement and other corporate purposes. The IPO will be closed on 25th April, 2024. However, the allotment of shares will begin on 26th April, 2024. 

To get detailed insights into the company, you review the Draft Red Herring Prospectus that it filed with the Securities and Exchange Board of India. You can also keep reading this blog, as an alternative, to know more about the upcoming IPO.

Emmforce Autotech Limited IPO Details

The company will launch its IPO on 23rd April 2024 and close on 25th April 2024. Here is a complete detail of Emmforce Autotech Limited IPO:

IPO Open Date

April 23, 2024

IPO Close Date

April 25, 2024

IPO Listing Date

April 30, 2024

Face Value

Rs. 10 per share

Price Band

Rs. 93 to Rs. 98 per share

Total Issue Size

54,99,600 shares (aggregating up to Rs. 53.90 crore)

Lot Size

1,200 Shares

Fresh Issue

54,99,600 shares (aggregating up to Rs. 53.90 crore)

Issue Type

Book Built Issue IPO

Listed At

BSE SME

About the Company

The founders Mr Ashok Mehta and Mrs Neetu Mehta started Emmforce Autotech Limited as a partnership firm. It turned into a public limited company in 2023. The headquarters of the company is located in Haryana while the manufacturing unit is located in Himachal Pradesh, India. 

The company specialises in manufacturing automotive drivetrain parts such as gear shifters, yokes, differential housings, differential covers, differential spools, etc. with special emphasis on 4-wheel drive and racing vehicles. It provides innovative design and automotive parts to customers. This makes it unique from other manufacturers in India. 

Emmforce places additional focus on engineering components to manufacture new automotive parts in much less time. It offers engineering services ranging from development to implementation of products. 

IPO Tentative Timeline

Emmforce Autotech Limited IPO will start on April 23, 2024. Here is a detailed overview of this IPO:

IPO Open Date

Tuesday, April 23, 2024

IPO Close Date

Thursday, April 25, 2024

Basis of Allotment

Friday, April 26, 2024

Initiation of Refunds

Monday, April 29, 2024

Credit of Shares to Demat

Monday, April 29, 2024

Listing Date

Tuesday, April 30, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on April 25, 2024

Additional Read: How to Invest in an IPO Online

IPO Lot Size

IInvestors can bid for a minimum of 1,200 shares and in multiples thereafter. Here is the table showcasing the investment limits of retail investors and HNIs in terms of shares and amounts. 

Application

Lots

Shares

Amount

Retail (Min)

1

1,200

Rs. 1,17,600

Retail (Max)

1

1,200

Rs. 1,17,600

HNI (Min)

2

2400

Rs. 2,35,200

Company Financials

The table below depicts the important financial metrics of Emmforce Autotech Limited:

Particulars

For the financial year ending (in ₹ million)

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

4,895.40

5,257.36

3,384.41

Total Liabilities

3,486.1

3,128.27

1,859.58 

Total Revenue

4,875.32

7,138.13

5,185.32

Total Expenses

4.197.62

6,017.39 

4,359.64

Profit After Tax

438.85

732.58

508.91

EBITDA

955.04

1,295.87

986.59

Additional Read: Upcoming IPOs in May 2024

Strengths

While investing in an IPO, you must be aware of its strengths. Here are some noteworthy strengths of Emmforce Autotech Limited that you must know about:

  • The company provides unique and innovative automotive products with detailed knowledge of automotive materials. This helps its business to expand and earn profit in the long term.
  • The continuous dedicated efforts of the company towards maintaining high-quality products have helped it gain a competitive advantage over others. Thus, the company has earned trust and goodwill from its customers, resulting in repeated orders over time. 
  • A wide range of drivetrain parts are manufactured at one stop. Thus, purchasing all parts from a single supplier results in cost savings. Furthermore, Group Company's US warehouse helps in the improvement of product distribution and assists customers in every way possible. 
  • The company is well recognised for retaining clients and establishing a strong reputed position with them. Thus, they can maintain a long-lasting relationship with customers and improve the retention strategy. It is even believed that the relationship with existing customers reveals a competitive advantage of attracting new customers and expanding the business. 
  • Emmforce Autotech Limited follows a business model consisting of efficient use of existing resources and producing products catering to the needs of customers. This business model has turned out beneficial for the company during the last financial years.

Risks Involved

Besides strengths, you must be aware of the risks associated with Emmforce Autotech Limited's IPO. The risks are highlighted as follows:

  • To ensure an adequate supply of raw materials, the company is heavily dependent on third parties. Thus, if any of the third parties fail to meet the desired obligations, it might create an adverse impact on the business, its operations and financial conditions. 
  • The majority of the revenue of the company is impacted by fluctuations in foreign exchanges. Due to the exposure to foreign currency, exchange rate fluctuation might affect the business operations, financial conditions and cash flows. 
  • There exists high competition in the automotive business in India. Thus, the company is involved in a highly competitive business environment. Any mismanagement in operations might adversely impact the business and its financial condition

Additional Read: Difference Between NFO and IPO

Summary

If you are planning to invest in Emmforce Autotech IPO, make sure to go through the Red Herring Prospectus (RHP) and make an informed decision. Till this IPO gets launched, you can visit its official website and look into the updated information about the company. Moreover, you can create a demat and trading account before you start your investment journey.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

What is the fresh issue size of the Emmforce Autotech Limited IPO?

Answer Field

The fresh issue size of Emmforce Autotech Limited IPO aggregates up to 55,00,000 equity shares.

Who are the book-running lead managers of Emmforce Autotech Limited IPO?

Answer Field

Beeline Capital Advisors Private Limited is the book-running lead manager of Emmforce Autotech Limited IPO.

Who are the selling shareholders of Emmforce Autotech Limited IPO?

Answer Field

Mr. Ashok Mehta and Mrs. Neetu Mehta are the selling shareholders of Emmforce Autotech Limited IPO.

Who is the registrar of Emmforce Autotech Limited IPO?

Answer Field

Link Intime India Private Limited is serving as the registrar of Emmforce Autotech Limited IPO.

Where are the equity shares of Emmforce Autotech Limited IPO proposed to be listed?

Answer Field

The equity shares of Emmforce Autotech Limited IPO are set to be listed on the Bombay Stock Exchange for Small and Medium Enterprises.

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