Emmforce AutoTech IPO opens, order book subscribed fully

Panchkula, Haryana-based aftermarket drivetrain component manufacturer, Emmforce AutoTech, has successfully completed its anchor book subscription, raising Rs 15.34 crore from the sale of 15.66 lakh equity shares at Rs 98 each.

Emmforce’s IPO begins today, April 23, and will conclude on April 25, 2024. The company is looking to raise approximately Rs. 53.9 crore from the offering and it proposes to utilise the net proceeds from the IPO to invest in its subsidiary company - Emmforce Mobility Solutions Private Limited (EMSPL) for setting up a new plant at Jharmajri, Baddi in Himachal Pradesh, meet the company’s working capital requirement; and for general corporate purpose. EMSPL manufactures Rotavator Blades and Steel Forgings for the automotive and engineering industries.

Marquee investors, including BofA Securities Europe SA – ODI, Astorne Capital VCC ARVEN, NAV Capital VCC – NAV Capital Emerging Star Fund, NEGEN Undiscovered Value Fund, Persistent Growth Fund – Varsu India Growth Story Scheme – 1, Craft Emerging Market Fund PCC – Citadel Capital Fund, Moneywise Financial Services Private Limited, LC Radiance Fund VCC and Galaxy Noble Global Opportunities Fund PCC – GNGOF 1 subscribed to the anchor book.

Global banking giant Bank of America’s BofA Securities Europe SA – ODI contributed to 19.62% of the total anchor book subscription, while Astorne Capital VCC ARVEN subscribed 14.79% of the anchor book. NAV Capital VCC – NAV Capital Emerging Star Fund and NEGEN Undiscovered Value Fund subscribed 13.10% each, Persistent Growth Fund – Varsu India Growth Story Scheme – 1 and Craft Emerging Market Fund PCC – Citadel Capital Fund subscribed 9.81% each of the anchor book. Additionally, Moneywise Financial Services Private Limited, LC Radiance Fund VCC and Galaxy Noble Global Opportunities Fund PCC – GNGOF 1 picked up 6.59% each.

The price band of the IPO is Rs 93-98 per equity share with a face value of Rs 10 apiece. The company’s IPO comprises a fresh issue of 54.99 lakh Equity Shares with a face value of Rs 10 through the book-building route. 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 company has allotted 2.76 lakh equity shares for Market Maker, 7.83 lakh equity shares allocated for HNIs, 15.66 lakh equity shares for anchor investors, 10.45 lakh equity shares allotted for QIB quota and the Retail (RII) portion accounts for 18.28 lakh equity shares. The lot size is 1,200 shares.

The company has a plant in Baddi, Himachal Pradesh, where it manufactures niche automotive drivetrain parts, and its sales comprise majority of exports to six continents, primarily to North America and Asia.

Emmforce AutoTech manufactures a wide range of niche automotive drivetrain parts like differential housings, differential lockers, differential covers, 4WD locking hubs, spindles, axles & shafts, gear shifters, yokes, differential spools, differential tools, and various differential forged / cast parts primarily for 4-wheel Drive and performance racing vehicles.