Shares of Emmforce Autotech made a blockbuster debut at the bourses listing at 90% premium over the IPO issue price of ₹98. The stock hit a high of ₹195.51.
The Emmforce Autotech IPO received overwhelming response from investors. At the end of Day 3, the Emmforce Autotech IPO subscription status stood at 364.37 times, with retail and non-institutional portions oversubscribed at 267 times and 861 times, respectively, while QIBs were subscribed 160.85 times.
The IPO allocation designates 50% to Qualified Institutional Buyers (QIBs), 35% to retail individual investors, and 15% to non-institutional bidders.
The Emmforce Autotech PO, aimed to raise ₹53.90 crore, comprising a fresh issue of 5,499,600 equity shares with a face value of ₹10, with no offer-for-sale component.
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The company successfully raised ₹15.34 crore from anchor investors by selling 15.66 lakh equity shares at ₹98 apiece. Notable investors include Astorne Capital VCC ARVEN, NAV Capital VCC – NAV Capital Emerging Star Fund, and NEGEN Undiscovered Value Fund, among others.
Proceeds from the IPO will primarily be used for meeting working capital needs, general corporate objectives, and financial commitments to subsidiaries like Emmforce Mobility Solutions Private Limited (EMSPL).
The Hyderabad based company specialises in manufacturing niche automotive drivetrain parts such as differential housings, differential lockers, differential covers, 4WD locking hubs, spindles, axles & shafts, gear shifters, yokes, differential spools, and differential tools. These components are primarily designed for 4-wheel drive and performance racing vehicles.
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