Emmforce Autotech Ltd IPO: Review, Valuation, Date & GMP

Emmforce Autotech Limited IPO  - Complete Overview

Established in 2012, Emmforce Autotech Limited specializes in manufacturing niche automotive drivetrain parts. The product range of the company includes a variety of components such as Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools, and Differential Tools, primarily catering to 4-wheel drive and performance racing vehicles.

The company has been engaged in exports ever since its inception, and its manufacturing facility is located in Baddi, Himachal Pradesh. Emmforce has recently invested in Emmforce Mobility Solutions Pvt. Ltd. (EMSPL) by acquiring 80% of its shareholding from Emmbros Automotives Pvt. Ltd. 

As of October 2023, the company has generated revenue of Rs. 4,790.31 lakhs.

 

Emmforce Autotech Limited IPO Overview

Emmforce Autotech Limited IPO date is slated to be open for subscription from April 23, 2024, to April 25, 2024. This BSE SME IPO follows a Book Built Issue IPO.

Emmforce Autotech Limited IPO price is fixed in the range of at Rs.93 to Rs.98 per share. 

The total issue size of this IPO amounts to Rs.53.90 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non instituional investors.

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Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Emmforce Autotech Limited has seen decrease in total assets and total revenue but increased in net worth. The profit after tax has increased while the total borrowing decreased.

(Amount in Lakhs)

Period	31 Oct 2023	31 Mar 2023	31 Mar 2022
Total Assets	5,597.13	4,895.40	5,257.36
Total Revenue	4,790.31	4,875.32	7,138.13
PAT	511.78	438.85	732.58
Net worth	1,500.00	2,344.95	2,129.09
Reserve & Surplus	43.72
Total Borrowings	2,404.25	1,535.43	1,651.09

 

The Objective of the Issue

The company intend to utilize the net proceeds of the Issue to meet the following objects: - 

1. Investment in the Subsidiary Company, Emmforce Mobility Solutions Private Limited (EMSPL), either through equity or debt, aims to fulfill the working capital requirements and provide margin money for the term loan of the Subsidiary Company. 

2. To Meet Working Capital Requirement of our Company 

3. General Corporate Purpose

 

 

Peers of Emmforce Autotech Limited IPO

Name of the company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
Emmforce Autotech Limited	10.00	2.93	-
Divgi Torqtransfer Systems Ltd	10.00	18.45	44.31

 

Evaluation

The IPO is priced within the range of Rs.93 to Rs.98 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 2.93 from the last year, the resulting P/E ratio is 33.5x.

• Taking into account the weighted EPS of Rs 3.66 for the last three years, the P/E ratio amounts to 26.77x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 44.31x.

As a result, the IPO price range, with a P/E ratio ranging from 33.5x to 26.77x, seems aggresively priced to the industry average of 44.31x.

 

IPO's Strengths 

• In-house research, design, and development coupled with extensive knowledge of various materials and processes.

• Offering a comprehensive solution for drivetrain parts.

• Commitment to quality assurance and adherence to standards.

• Established client relationships.

• Scalable business model.

• Experienced management team.
  
  

IPO weaknesses 

• The company's performance is heavily reliant on the Automobile Sector, specifically passenger vehicles, commercial vehicles, and engines.

• In the ordinary course of business, the company requires specific approvals and licenses.

• Legal proceedings involving the Company, Promoters, and its Group Companies are outstanding.

• The company's operations are subject to laws and regulations governing environmental, health, and safety standards.

• A majority of the company's revenue from operations is contributed by its top ten customers.

• Negative cash flows have been experienced by the company in the past.
  
  

 

 

IPO GMP Today 

The Latest GMP of Emmforce Autotech Limited is Rs.135.

Emmforce Autotech Limited IPO timetable (Tentative)

Emmforce Autotech Limited IPO is scheduled from April 23 to April 25, 2024, with allotment on April 26, refund initiation on April 29, and listing on April 30, 2024.

Events	Date
IPO Opening Date	April 23, 2024
IPO Closing Date	April 25, 2024
IPO Allotment Date	April 26, 2024
Refund initiation	April 29, 2024
IPO Listing Date	April 30, 2024

 

Emmforce Autotech Limited IPO Details 

Emmforce Autotech Limited IPO, with a face value of Rs.10 per share, opens on April 23 and closes on April 25, 2024, offering 5,499,600 shares at Rs.93 to Rs.98 per share, with a lot size of 1200 shares, aiming to raise Rs.53.90 Cr, and will be listed on BSE SME.

IPO opening & closing date	April 23, 2024 to April 25, 2024
Face value	Rs.10 per share
Issue Price	Rs. 93 to Rs. 98 per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 117,600
Issue Size	5,499,600 shares (aggregating up to Rs. 53.90 Cr)
Fresh issue	5,499,600 shares (aggregating up to Rs. 53.90 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

 

Emmforce Autotech Limited IPO Lot Details 

For Emmforce Autotech Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.117,600 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.235,200.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Emmforce Autotech Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Emmforce Autotech Limited

• Mr. Ashok Mehta

• Mrs. Neetu Mehta 

• Mr. Azeez Mehta

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	73.17%

 

Emmforce Autotech Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd
  
  

Dividend Policy

The company has not paid any dividends in the past, and future dividend payments will depend on the financial performance of the company.

 

 

 

Conclusion

The company operates in a highly competitive environment, and its revenue has decreased compared to the previous fiscal years. Seasoned Investors may consider applying for the upcoming IPO after thoroughly analyzing all factors to maximize potential gains.

 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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