Emmforce Autotech Limited IPO Review

Emmforce Autotech Limited IPO

Emmforce Autotech Limited’s IPO consists of a fresh issue of 54,99,600 lakh shares worth INR 53.90 crores. The company aims to invest in subsidiaries, meet working capital needs, and fulfill general corporate purposes.

Emmforce Autotech Ltd IPO – Important Dates 

Emmforce Autotech Limited IPO DateApril 23, 2024 to April 25, 2024
Emmforce Autotech Limited IPO Listing DateApril 30, 2024
Emmforce Autotech Limited IPO PriceINR 93-98 per share
Emmforce Autotech Limited IPO Lot Size1200 Shares
Emmforce Autotech Limited IPO Total Issue SizeINR 53.90 crores
Emmforce Autotech Limited IPO Basis of AllotmentApril 26, 2024
Emmforce Autotech Limited IPO Initiation of RefundsApril 29, 2024
Emmforce Autotech Limited IPO Credit of Shares to DematApril 29, 2024
Emmforce Autotech Limited IPO Issue TypeBook Built Issue IPO
Emmforce Autotech Limited IPO Listing AtBSE SME 

Emmforce Autotech Limited IPO  – Company Profile 

Emmforce Autotech Limited specializes in manufacturing niche automotive drivetrain parts, catering primarily to 4-wheel drive and performance racing vehicles. Renowned for quality, cost-competitive solutions, and out-of-the-box designs, with a strong focus on exports. 

It boasts a vast inventory of tooling and fixtures and a relentless focus on engineering, enabling the swift development of innovative parts. This accelerates performance, ensures timely delivery, and enhances profitability with competitive pricing. 

It delivers full-cycle engineering solutions: market analysis, custom strategies, product design, prototyping, testing, and manufacturing. In-house capabilities cover forging, machining, fabrication, heat treatment, logistics, quality assurance, design, and validation, ensuring holistic client satisfaction. 

Emmforce Autotech Limited IPO Review 

Emmforce Autotech Limited Technologies’ financial analysis reveals a mixed performance. Revenue rose initially but declined later, with the current year’s shortfall. Profitability and equity improved, yet diluted EPS and RoNW decreased, signifying varied company performance.

1. Revenue Trend: The revenue decreased from ₹6,906.29 lakhs in March 2022 to ₹4,569.08 lakhs in March 2023. The revenue for the current year’s 7-month period ending October 2023 is INR 519.24 lakhs, falling short of last year’s benchmark. 

2. Equity and Liabilities: Equity has shown an increase over the periods, reflecting potential growth and expansion. 

3. Profitability: The profit after tax (PAT) has significantly decreased from ₹732.58 lakhs in March 2022 to ₹43.72 lakhs by October 2023. This decline t in profitability could be a concern for investors. 

4. Earnings per Share (EPS): The diluted EPS have fallen from ₹4.88 in March 2022 to ₹0.29 by October 2023, reflecting lower earnings per share for investors.

5. Return on Net Worth (RoNW): The RoNW has decreased from 34.41% to 2.83%, indicating an decrease in the company’s ability to generate returns on shareholder equity.

6. Financial Position: Total assets have increased, suggesting potential business growth. 

Emmforce Autotech Ltd IPO Fundamental Analysis 

ParticularAs of 31 March 2022As of 31 March 2023As of 31 October 2023
Revenue (₹ in lakhs)6,906.294,569.08519.24
Equity (₹ in lakhs)2,129.092,344.951,543.72
Expenses (₹ in lakhs)6,017.394,197.62459.13
Profit and Loss After Tax (₹ in lakhs)732.58438.8543.72
Diluted EPS only (₹)4.882.930.29
Return on Net Worth (%)34.4118.712.83
NAV per Equity Share (₹)14.1915.6310.29
Total Assets (in lakhs)5,257.364,895.405,597.13
Total Liabilities (in lakhs)3,128.272,550.454,053.4

Emmforce Autotech Limited IPO Peer Comparison 

Emmforce Autotech Limited’s standalone EPS is lower than Divgi Torqtransfer Systems Ltd, demonstrating a notable increase in its EPS from the previous period. 

CompanyType of FinancialFace Value (₹)EPS  (₹)PERoNW (%)NAV per Equity Share (Basic) (₹)
Emmforce Autotech LimitedStandalone102.93NA18.7115.63
Divgi Torqtransfer Systems LtdStandalone1018.4544.319.28360.53

Emmforce Autotech Limited IPO Objective 

The main objective of Emmforce Autotech Limited is to invest in subsidiary companies and meet working capital requirements. 

  1. Investment in Subsidiary Companies: The company intends to invest INR 1000 lakhs in Emmforce Mobility Solutions Pvt. Ltd. (EMSPL) for working capital and term loan margin. EMSPL will use the funds to set up a plant in Himachal Pradesh. 
  1. To Meet Working Capital Requirements: The company, in the auto components industry, plans to utilize INR 2700 lakhs from the issue’s net proceeds for working capital needs, with the remainder sourced through borrowings, facilitating business expansion. 
  1. General Corporate Purposes: The company will balance funds towards general corporate goals, including funds allocated for operational needs, project development, and bolstering business development and marketing capabilities for growth.

Emmforce Autotech Ltd IPO Risks And Challenges

Emmforce Autotech Limited’s risk includes heavy reliance on the Automobile Sector, regulatory compliance challenges, and the need for agile adaptation to technological and regulatory shifts to maintain competitiveness.

  • Their auto-components business is highly reliant on the performance of the Automobile Sector. It is subject to market fluctuations, government policies, economic conditions, and demographic trends, which can potentially impact business, operations, and financial stability. 
  • Their operations are subject to numerous laws and regulations, requiring licenses and permits. Delays or non-receipt of approvals may lead to cost overruns, operational constraints, and potential penalties amid increasingly stringent regulatory environments. 
  • Their competitiveness relies on anticipating and adapting to technological and regulatory changes and developing new products in a timely manner. Failure to do so may lead to obsolescence, adversely impacting business, financials, and future prospects. 

Emmforce Autotech IPO  – Industry & Market Potential 

India’s booming economy, driven by increased incomes and infrastructure spending, fuels growth in the auto industry, particularly two-wheelers. The sector contributes significantly to GDP, employment, and exports and is projected to grow substantially by 2026. 

India’s auto components industry saw a revenue surge to Rs. 5.6 lakh crore (US$69.7 billion) in 2022-23, driven by domestic OEM supplies (~66%), exports (~22.3%), and aftermarket growth (15%). Projections hint at US$30 billion in exports by 2026. 

The transportation industry’s shift to electric and hybrid cars creates opportunities for auto component manufacturers. India’s incentives and infrastructure investments support this transition, aiming for significant growth and a global automotive trade expansion. 

Emmforce Autotech Ltd IPO – Type of Offer 

Emmforce Autotech Limited’s IPO consists of a fresh issue of 54,99,600 lakh shares. The company aims to invest in subsidiaries, meet working capital needs, and fulfill general corporate purposes.

Emmforce Autotech Limited IPO Offer Size

The offer size of Emmforce Autotech Limited is INR  53.90 crores, consisting of a fresh issue of 54,99,600 lakh shares. The company seeks funds to invest in subsidiaries, meet working capital needs, and fulfill general corporate purposes.

Emmforce Autotech IPO Allotment Structure

Emmforce Autotech Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

How to apply for an Emmforce Autotech Ltd IPO?

To apply for the Emmforce Autotech Limited  IPO through Alice Blue, you would typically follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the Emmforce Autotech Limited  IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Emmforce Autotech Limited  IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Emmforce Autotech Limited ‘s IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the Emmforce Autotech Limited  IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Emmforce Autotech Limited  IPO.
  5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Emmforce Autotech Limited  IPO:

Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Emmforce Autotech Limited  IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

●  BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Emmforce Autotech Limited Ltd IPO Offer Registrar

The registrar for the Emmforce Autotech Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

LINK INTIME INDIA PRIVATE LIMITED

C 101, 247 Park, L.B.S. Marg,

Vikhroli (West), 

Mumbai- 400083, Maharashtra, India

Tel. No.: +91-8108114949

Email: [email protected]

Website: www.linkintime.co.in

Emmforce Autotech Limited IPO –  FAQs 

1. What is the allotment date of Emmforce Autotech Limited? 

The allotment date of the Emmforce Autotech Limited IPO is April 26, 2024.

2. What is the price band of the Emmforce Autotech Limited  IPO? 

The price band of the issue is INR 93-98 per share.

3. What is the size of the Emmforce Autotech Limited  IPO? 

The offer size of Emmforce Autotech Limited is  INR 53.90 crores, consisting of a fresh issue of 54,99,600 lakh shares. The company seeks funds to invest in subsidiaries, meet working capital needs, and fulfill general corporate purposes. 

4. What is the listing date of the Emmforce Autotech Limited  IPO? 

The listing date of Emmforce Autotech Limited ‘s IPO is April 30, 2024. 

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