Delta Autocorp IPO: 340x Subscription; GMP Soars 89%; Check Allotment Date

The initial public offering of the Delta Autocorp SME IPO which opened on Jan. 7 closed for bidding on Jan. 9. The IPO was booked 342.1 times led by demand from non-institutional buyers.

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.

Here's all you need to know about the Delta Autocorp IPO.

The Delta Autocorp IPO was subscribed 342.1 times as of 5:30 p.m. on Thursday

• Qualified Institutions: 178.64 times

• Non-Institutional Buyers: 624.28 times

• Retail Investors: 314.33 times

Delta Autocorp's IPO price band was set between Rs 123 and Rs 130 per share. Retail investors could apply for a minimum of 1,000 shares, which translated to an investment of Rs 1,30,000. 

Of the 42,00,000 shares offered -- 7,81,000 (18.6%) was reserved for Qualified Institutions, 5,87,000 (13.98%) for Non-Institutional Buyers, 13,68,000 (32.57%) for Retail Investors and 11,70,000 (27.86%) for Anchor investors.

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.

The Grey Market Premium (GMP) for the Delta Autocorp IPO stood at Rs 116 as of 04:00 p.m. on Jan. 9, as per InvestorGain. With the price band set at Rs 130 per share, the expected listing price for the IPO is Rs 246, considering the current GMP. This implies a potential gain of around 89.23% over the issue price. 

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

The allotment of Delta Autocorp 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.

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.

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.

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.