Emmforce Autotech IPO: Price band, issue size, key dates, other details to know

Emmforce Autotech IPO price band has been set in the range of ₹93 to ₹98 per equity share of face value of ₹10 each. Emmforce Autotech IPO will open for subscription on Tuesday, April 23, and close on Thursday, April 25. Emmforce Autotech IPO lot size consists of 1,200 shares. Bids may be placed for a minimum of 1,200 equity shares, and thereafter, for multiples of 1,200 equity shares. The floor price is 9.30 times of the face value and the cap price is 9.80 times of the face value. 

The IPO has reserved not more than 50% of the net issue from Qualified Institutional Buyers (QIBs), retail individual bidders portion has been set aside not less than 35% of the net issue, and the non-institutional bidders segment has been set aside not less than 15% of the net issue. 

Tentatively, Emmforce Autotech IPO basis of allotment of shares will be finalised on Friday, April 26. The company will initiate refunds on Monday, April 29, while the shares will be credited to the demat account of allottees on the same day. Emmforce Autotech IPO shares are likely to be listed on BSE SME on Tuesday, April 30.

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According to the Red Herring Prospectus (RHP), the company's business is to manufacture specialty automotive drivetrain parts, primarily for 4WD and performance racing vehicles. These parts include differential housings, differential locks, differential covers, 4WD locking hubs, spindles, axles & shafts, gear shifters, yoke, differential spools, differential tools, and various differential forged / cast parts.

Since its founding, the firm has been involved in exports. We have made a name for ourselves as an Indian producer of drivetrain components, serving as a one-stop shop for high-quality, reasonably priced drivetrain parts. We also provide our clients creative solutions by creating and developing intricate or unique parts.

The company's listed peer is Divgi Torqtransfer Systems Ltd (with a P/E of 44.31).

Between March 31, 2022, and March 31, 2023, Emmforce Autotech Limited's profit after tax (PAT) plummeted by -40.1% and its sales by -31.7%, respectively.

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Emmforce Autotech IPO details 

Emmforce Autotech IPO, which is worth about ₹53.90 crore, consists of a fresh issue of 5,499,600 equity shares with a face value of ₹10. There is no offer-for-sale component.

The company intends to use the issue's net proceeds to pursue the following objectives: Investment in a subsidiary business, such Emmforce Mobility Solutions Private Limited (EMSPL), to meet the operational capital and margin requirements of the subsidiary firm in the form of debt or equity.to satisfy the working capital needs of the business. Corporate Goals in General.

The book running lead manager for the Emmforce Autotech IPO is Beeline Capital Advisors Pvt Ltd, and the registrar is Link Intime India Private Ltd. Spread X Securities is the market maker for the IPO of Emmforce Autotech.

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