The Delta Autocorp Ltd. initial public offering (IPO) is a book-built issue valued at Rs 54.60 crore. This offering consists of a fresh issue of 38.88 lakh shares to raise Rs 50.54 crore, alongside an offer-for-sale component of 3.12 lakh shares, amounting to Rs 4.06 crore. The IPO opened for subscription on Tuesday and was subscribed 13.81 times, as per market tracking site Chittorgarh.

Investors interested in participating in the Delta Autocorp IPO should consider these key details before investing:

Delta Autocorp IPO Details

The Delta Autocorp IPO will remain open for subscription till Jan. 9. The allotment of shares will be finalised by Jan. 10, followed by the initiation of refunds for non-allottees and credit of shares to Demat accounts of successful bidders on Jan. 13. The shares are expected to be listed on the NSE SME platform, Emerge, on Jan. 14, 2025.

Delta Autocorp’s IPO price band has been set between Rs 123 and Rs 130 per share. Retail investors can apply for a minimum of 1,000 shares, which translates to an investment of Rs 1,30,000. 

The Delta Autocorp IPO has allocated shares across various investor categories. qualified institutional buyers (QIBs) will be offered no more than 50% of the net issue, while retail investors will be allotted 35% of the total shares on offer. High net-worth individuals (HNIs) or non-institutional investors are set to receive a minimum of 15% of the net issue.

The book-running lead manager for the Delta Autocorp IPO is GYR Capital Advisors Pvt., with Link Intime India Pvt. serving as the registrar for the issue. Giriraj Stock Broking Pvt. has been appointed as the market maker for this NSE SME IPO.

Delta Autocorp IPO Subscription Status: Day 2

The Delta Autocorp IPO has been subscribed 17.08 times as of 10:20 a.m. on Wednesday:

  • Qualified Institutions: 0.78 times

  • Non-Institutional Buyers: 10.15 times

  • Retail Investors: 29.37 times

*The subscription status will be updated at regular intervals

Delta Autocorp IPO Subscription Status: Day 1

The Delta Autocorp IPO was subscribed 13.81 times on Tuesday.

  • QIB: 0.78 times

  • Non-Institutional Investors: 8.39 times

  • Retail Investors: 23.59 times

Delta Autocorp IPO GMP Today

The Grey Market Premium (GMP) for the Delta Autocorp IPO stood at Rs 110 as of 7:31 a.m. on Jan. 8, as per InvestorGain. With the price band set at Rs 130 per share, the expected listing price for the IPO is Rs 240, considering the current GMP. This implies a potential gain of around 84.62% over the issue price. 

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Delta Autocorp Ltd. Business And Financials

Founded in 2016, Delta Autocorp Ltd. specialises in the design, manufacturing and sale of electric 2-wheelers and 3-wheelers. Operating under the brand name ‘Deltic’, the company initially developed electric 3-wheeler prototypes. 

In 2017, it launched its first E-Rickshaw, which offered a mileage of over 150 km. Soon, Delta Autocorp expanded its product offerings to include electric 2-wheelers. The company began prototype development in 2018 and introduced electric scooters in 2019, specifically targeting tier-2 and tier-3 towns. 

Delta Autocorp operates through a network of over 300 dealers across 25 states and Union Territories.

Use Of Proceeds

The proceeds from the Delta Autocorp IPO will be allocated towards setting up an electric three-wheeler fabrication and painting plant. The funds will also be invested in new product development to expand their offerings. The company then plans to use a portion of the IPO proceeds to meet working capital requirements and cover general corporate expenses, including costs related to the offer.

Financials

Delta Autocorp Ltd.’s financial performance has shown steady growth over the years. For the period ending October 31, 2024, in the current financial year,  the company reported a revenue of Rs 45.27 crore, which follows Rs 8,1.16 crore lakh in FY24 and Rs 80.55 crore in FY23. 

In terms of profit, Delta Autocorp posted a profit after tax (PAT) of Rs 4.8 crore for the period ending October 31, 2024. The company’s net profit rose to Rs 8.2 crore in FY24 from Rs 5.13 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

. Read more on IPOs by NDTV Profit.The Grey Market Premium (GMP) for the Delta Autocorp IPO stood at Rs 110 as of 7:31 a.m. on Jan. 8, as per InvestorGain.  Read MoreIPOs 

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