Delta Autocorp IPO Day 2; Subscription reaches 24x, GMP zooms 84%

Delta Autocorp IPO, which opened for subscription on January 7, 2025, will remain available for subscription until Thursday, January 9, 2025

Delta Autocorp IPO: The initial public offering (IPO) of Delta Autocorp, which opened for subscription yesterday, Tuesday, January 7, 2025, has received an enthusiastic response from investors. The public offering has been oversubscribed by 24.24 times as of 11:51 AM on Wednesday, January 8, 2025.

 

Delta Autocorp IPO is a book-built issue of Rs 54.60 crore, comprising a fresh issue of 38,88,000 equity shares and an offer for sale of 3,12,000 equity shares.

 

The IPO is available at a price band of Rs 123-130 per share, with a lot size of 1,000 shares. Investors can bid for a minimum of 1,000 shares and in multiples thereof. The public offering will close for subscription on Thursday, January 9, 2025.

 

Meanwhile, the unlisted shares of Delta Autocorp were commanding a solid premium in the grey market on the second day of the subscription period. Sources tracking grey market activities revealed that the company’s shares were quoted at Rs 240 apiece against the upper end of the IPO price of Rs 130. Thus, Delta Autocorp IPO's grey market premium (GMP) stood at Rs 95 or 84.62 per cent today.

 

Following the closure of the subscription window, the basis of allotment of Delta Autocorp IPO shares is expected to be finalised on Friday, January 10, 2025. The successful allottees will receive the company's shares in their demat accounts on Monday, January 13, 2025.

 

Delta Autocorp shares are expected to list on the BSE and NSE tentatively on Tuesday, January 14, 2025.

 

Link Intime India is serving as the registrar for the Delta Autocorp IPO, while GYR Capital Advisors is the sole book-running lead manager.

 

The company, in its Red Herring Prospectus (RHP), said it will not receive any proceeds from the offer for sale. "The proceeds of the Offer for Sale shall be received by the Selling Shareholders and will not form part of the Net Proceeds. Each Selling Shareholder will be entitled to its respective portion of the proceeds of the Offer for Sale after deducting its respective proportion of the offer expenses and relevant taxes thereon."

 

Delta Autocorp, however, proposes to utilise the proceeds from the fresh issue for funding the expenditure towards setting up an electric three-wheeler fabrication plant and painting plant, as well as for investment in new product development. The company will also use the proceeds for funding working capital requirements and general corporate purposes.

 

Delta Autocorp manufactures and sells 2W and 3W EVs using cutting-edge components procured from Original Equipment Manufacturers (OEMs) based on specific design and engineering specifications. Operating under the brand name ‘Deltic,’ the company specialises in the production of electric two-wheeler and three-wheeler vehicles. Its journey began with the establishment of Delta Autocorp LLP in 2016 by promoter Ankit Agarwal.