Emmforce Autotech stock lists with 90% premium over IPO price

The , which was completely a fresh equity issue of 54.9 lakh shares, received overwhelming response from investors with an overall subscription of over 300 times at close.

The net proceeds from the public offer will be used for investment in subsidiaries in the form of equity or debt, working capital requirements and other general corporate purposes.

The company is engaged in the business of manufacturing niche automotive drivetrain parts like differential housings, differential lockers, differential covers, 4WD locking hubs, spindles, axles and shafts, gear shifters, yokes, differential spools, differential tools and various differential forged parts primarily for 4-wheel drive and performance racing vehicles.

Emmforce Autotech has been engaged in exports ever since its inception. We have established itself as a manufacturer of drivetrain parts in India and is a one stop shop for quality cost competitive drivetrain parts and providing out-of-the-box solutions to its customers through designing and development of complex parts.

India’s auto component industry is an important sector driving macroeconomic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country.

The auto components industry accounted for 2.3% of India’s GDP and provided direct employment to 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of India's GDP.

Ahead of the issue opening, the company raised around Rs 15 crore from anchor investors, under which 1.56 million shares were offered at Rs 98 each. Marquee investors including BofA Securities Europe, Astorne Capital and others bought into the anchor book.

For the period ended December 2023, the company clocked revenues of Rs 5.19 crore and net profit of Rs 43 lakh.

Beeline Capital Advisors acted as the lead manager to the issue and Link Intime India was the registrar.