Emmforce Autotech raises Rs 15.34 cr from anchor investors, IPO opens today

Emmforce Autotech, an automotive components manufacturer has raised Rs 15.34 crore from anchor investors by selling 1.56 million shares at Rs 98 each. With investors, including BofA Securities Europe, and Astorne Capital buying the issue among others.  

Emmforce’s initial public offering (IPO) begins today, April 23, and will conclude on Thursday, April 25, 2024.

The company is looking to raise Rs. 53.9 crore from the offering and it proposes to utilise the net proceeds to invest in its subsidiary company - Emmforce Mobility Solutions for setting up a new plant; meet the company’s working capital requirement; and for general corporate purpose. 

The IPO price band is fixed between Rs 93 to Rs 98 per share, with a minimum lot size of 1200 shares. Retail investors need a minimum investment of Rs 1,17,600, while high net worth individuals (HNIs) must invest in 2 lots (2,400 shares) amounting to Rs 2,35,200.

The company has allotted 2.76 lakh equity shares for market maker Spread X Securities, 7.83 lakh equity shares allocated for HNIs, 15.66 lakh equity shares for anchor investors, 10.45 lakh equity shares allotted for qualified institutional buyers (QIBs) quota and the retail portion accounts for 18.28 lakh equity shares with a lot size of 1,200 shares.

Beeline Capital Advisors Private Limited is the sole Book Running Lead Manager, and Link Intime India Private Limited is the Registrar for the issue.

The Panchkula-headquartered company manufactures niche automotive drivetrain parts, and its sales comprise majority of exports to six continents, primarily to North America and Asia.

The company recorded a 1.7 per cent revenue decline in the third quarter of financial year 2023-24 (Q3FY24) at Rs 47.90 crore against Rs 48.75 crore. While it reported net profit of Rs 5.1 crore in the December quarter of 2023 as against Rs 4.3 crore in the same quarter of the previous year.