Automotive niche firm Emmforce stock makes bumper debut on BSE SME; lists at 90% premium over IPO price: Emmforce Autotech Limited (“The Company”), a leading automotive niche components manufacturer in India, today made a stellar debut on the BSE SME platform. The stock was listed at Rs. 186.20/-, at a premium of 90% over the fixed price band of Rs.98/-.
Last week, the issue received an overwhelming response from the investors as the QIB portion was subscribed 161 times, the NII portion was subscribed 862 times and the Retail individual investors (RII) quota was subscribed 268 times, bringing the overall subscription to 365 times, until the final day of bidding on April 25, garnering bids worth over Rs. 13,000 crore.
The IPO compriseda fresh issue of 54.99lakh Equity Shares with a face value of Rs. 10/- through the book-building route.Beeline Capital Advisors Private Limited is the sole Book Running Lead Manager, and Link Intime India Private Limited is the Registrar for the issue.
Marquee investors, including BofA Securities Europe SA – ODI, Astorne Capital VCC ARVEN, NAV Capital VCC – NAV Capital Emerging Star Fund, NEGEN Undiscovered Value Fund, Persistent Growth Fund – Varsu India Growth Story Scheme – 1, Craft Emerging Market Fund PCC – Citadel Capital Fund, Moneywise Financial Services Private Limited, LC Radiance Fund VCC and Galaxy Noble Global Opportunities Fund PCC – GNGOF 1 subscribed to the anchor book. The lot size is 1,200 shares.
The Panchkula-headquartered company aims to raise Rs. 53.9 crore from the issue and proposes 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 company manufactures niche automotive drivetrain parts and its sales comprise the 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 SqMtr at Baddi in Himachal Pradesh.
EmmforceAutotech 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”.
For more information, please visit: https://emmforce.com/
Disclaimer: Emmforce Autotech Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the RHP with the BSE SME. The RHP is available on the website of BRLM,website of BSE and website of the Company. Any potential investors should note that investment in equity shares involves a high degree of risk, and for details relating to the same, please refer to the RHP, including the section titled “Risk Factors”, beginning on page 22.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act) or any state securities laws in the United States, and unless so registered, and may not be issued or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with any applicable U.S. state securities laws. The Equity Shares are being issued and sold outside the United States in ‘offshore transactions in reliance on Regulation “S* under the Securities Act and the applicable laws of each jurisdiction where such issues and sales are made. There will be no public offering in the United States.
