The IPO details for Emmforce Autotech are confirmed: The IPO is set to open on April 23 and close on April 25. Emmforce Autotech, a NSE SME IPO, aims to raise ₹53.90 crores through the IPO. The price band for the Emmforce Autotech IPO is set at ₹93 to ₹98 per share, with a market lot of 1200 shares.
Emmforce Autotech is engaged in the business of manufacturing 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. The company has been engaged in exports ever since its inception. They have established itself as a manufacturer of Drivetrain Parts in India and is a stop shop for quality cost cost-effective drivetrain parts and provides out-of-the-box solutions to its customers through designing and developing complex/special parts.
A huge inventory of tooling for forging and machining, jigs and fixtures for machining, and extra focus on engineering gives Emmforce an edge over the competition to develop new parts in a much faster time than the competition. Their company helps to accelerate performance and improve profitability through faster product development, shorter lead time, on-time delivery, comprehensive product range, and competitive pricing.
They offer fully integrated engineering solutions from conceptualization, development, and validation to implementation and manufacturing of their products. The conceptualization stage involves acquiring market intelligence, assessing customer requirements, and formulating customized strategies for individual customers. The development phase includes product designing, material procurement, and processing. This is followed by the validation phase, which involves prototyping, testing, and feasibility analysis. Their in-house manufacturing and implementation competencies include forging, machining, fabrications, heat treatment, surface finish, logistics, quality and testing, design, and validation.
IPO Date | April 23, 2024 to April 25, 2024 |
Listing Date | [.] |
Face Value | ₹10 per share |
Price Band | ₹93 to ₹98 per share |
Lot Size | 1200 Shares |
Total Issue Size | 5,499,600 shares (aggregating up to ₹53.90 Cr) |
Fresh Issue | 5,499,600 shares (aggregating up to ₹53.90 Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE SME |
Share holding pre issue | 15,000,000 |
Share holding post issue | 20,499,600 |
Market Maker portion | 276,000 shares |
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 |
KPI | Values |
---|---|
RoNW | 2.83% |
P/BV | 9.52 |
PAT Margin (%) | 8.42% |
The company intends to utilize the net proceeds of the Issue to meet the following objectives:
The company specializes in niche automotive drivetrain parts. While it achieved growth in both its top and bottom lines for FY21 and FY22, it experienced a decline in FY23 due to accumulated inventories with its clients. However, it has shown signs of recovery, as indicated by its earnings for the first seven months of FY24. Although the valuation of the offering appears fully priced based on FY24 annualized earnings, well-informed investors may consider allocating funds for potential medium to long-term rewards.
Emmforce Autotech Limited’s revenue decreased by -31.7% and profit after tax (PAT) dropped by -40.1% between the financial year ending with March 31, 2023 and March 31, 2022.
Period Ended | 31 Oct 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
Assets | 5,597.13 | 4,895.40 | 5,257.36 | 3,384.41 |
Revenue | 4,790.31 | 4,875.32 | 7,138.13 | 5,185.32 |
Profit After Tax | 511.78 | 438.85 | 732.58 | 508.91 |
Net Worth | 1,500.00 | 2,344.95 | 2,129.09 | 1,524.82 |
Reserves and Surplus | 43.72 | |||
Total Borrowing | 2,404.25 | 1,535.43 | 1,651.09 | 501.70 |
Amount in ₹ Lakhs |
₹ in Crores | |||
---|---|---|---|
Year | Revenue | Expense | PAT |
2021 | ₹51.85 | ₹43.60 | ₹5.09 |
2022 | ₹71.38 | ₹60.17 | ₹7.33 |
2023 | ₹48.75 | ₹41.98 | ₹4.39 |
October 2023 | ₹5.19 | ₹4.59 | ₹0.44 |