Delta Autocorp shares list at 35% premium, hit 5% upper circuit later

Shares of Delta Autocorp continued their northward march post-listing to hit the 5 per cent upper circuit at Rs 183.75 per share on the NSE SME

Shares of Delta Autocorp Ltd made an impressive debut on the NSE SME platform today, January 14, 2025. The stock was listed at Rs 175 per share, reflecting a 34.62 per cent premium over its issue price of Rs 130. This provided investors, who were allotted shares during the company’s initial public offering (IPO), with a listing gain of Rs 34.62 per share.   Shares of Delta Autocorp continued their northward march post listing and around 10:01 AM, hit the 5 per cent upper circuit at Rs 183.75 per share on the NSE SME.  

Delta Autocorp IPO listing was below grey market expectations. Prior to the debut, Delta Autocorp shares were trading at Rs 235 apiece in the grey market, representing a grey market premium (GMP) of Rs 105 or 80.77 per cent over the issue price, as per sources tracking the grey market.

 

Delta Autocorp’s Rs 54.60 crore SME IPO consisted of a fresh issue of 38,88,000 equity shares, and an offer for sale (OFS) of 3,12,000 equity shares, each with a face value of Rs 10. The IPO was priced in the range of Rs 123 to Rs 130 per share, with a minimum lot size of 1,000 shares. It was open for subscription from January 7 to January 9, 2025.

 

The IPO witnessed strong investor demand and was oversubscribed by 342 times. The basis of allotment of shares was finalised on January 10, 2025, with the issue price set at Rs 130.

 

In its Red Herring Prospectus, Delta Autocorp said that the proceeds from the OFS would go to the selling shareholders after deducting offer-related expenses and applicable taxes. The company will not receive any funds from the OFS.

 

The funds raised from the fresh issue will be utilised for setting up an electric three-wheeler fabrication and painting plant, investing in new product development, meeting working capital requirements, and covering general corporate expenses and offer-related costs.

 

Link Intime India serves as the registrar for the public offering, while GYR Capital Advisors acts as the sole book-running lead manager.

 

Delta Autocorp, operating under the brand 'Deltic', manufactures and sells electric 2-wheelers and 3-wheelers. Incorporated in 2016, the company began with electric 3-wheeler prototypes and launched its first E-Rickshaw in 2017. Deltic expanded its product range to electric 2-wheelers in 2019. The company operates through a network of over 300 dealers across 25 states. Deltic focuses on in-house product innovation through its R&D department. Its product range includes electric scooters, rickshaws, loaders, and garbage carts.