Delta Autocorp Limited, a prominent player in India’s electric vehicle (EV) sector, is set to launch its Initial Public Offering (IPO) on the NSE SME platform. The IPO comprises a total issue size of 42,00,000 shares, aggregating up to ₹54.60 crore. This includes a fresh issue of 38,88,000 shares worth ₹50.54 crore and an offer for sale of 3,12,000 shares amounting to ₹4.06 crore.

Company Overview

Established in 2016, Delta Autocorp Limited operates under the brand name “Deltic” and is engaged in the manufacturing and sale of electric 2-wheelers and 3-wheelers. The company initially focused on developing electric 3-wheeler prototypes and, in 2017, launched its first E-Rickshaw, offering an impressive mileage of over 150 km. Recognizing market demand, Deltic expanded its product portfolio to include electric 2-wheelers, launching its first model in 2019. The company boasts a strong distribution network with over 250 partners across India.

IPO Timeline

• IPO Opening Date: January 7, 2025
• IPO Closing Date: January 9, 2025
• Basis of Allotment: January 10, 2025
• Initiation of Refunds: January 13, 2025
• Credit of Shares to Demat Accounts: January 13, 2025
• Listing Date: January 14, 2025

Price Band and Lot Size

• Price Band: ₹123 to ₹130 per share
• Lot Size: 1,000 shares
• Minimum Investment: ₹1,30,000 for retail investors
• Minimum Investment for HNIs: 2,000 shares amounting to ₹2,60,000

Financials

Delta Autocorp has demonstrated significant growth in recent years:

Strengths

• Diversified Product Portfolio: Offers a range of electric 2-wheelers and 3-wheelers catering to various customer needs.
• Established Brand: Operates under the well-recognized brand name “Deltic.”
• Extensive Distribution Network: Collaborates with over 250 distributors nationwide.
• Focus on Innovation: Continuously invests in new product development and technology.

Risks

• Market Competition: Faces competition from established and emerging players in the EV sector.
• Regulatory Changes: Subject to government policies and regulations related to electric vehicles.
• Supply Chain Dependencies: Relies on components from Original Equipment Manufacturers (OEMs).

IPO Anchor Investors Details

As of now, there is no information available regarding anchor investors for this IPO.

IPO Promoter Holding

The promoters of the company are Mr. Ankit Agarwal, Mrs. Priyanka Agarwal, and Mr. Sanwarmall Agarwalla. The pre-issue shareholding of the promoters is 97.59%.

IPO Grey Market Premium (GMP)

As of January 4, 2025, the Grey Market Premium for Delta Autocorp’s IPO is ₹52 per share, indicating a positive investor sentiment.

Final Thoughts

Delta Autocorp Limited’s IPO presents an opportunity to invest in a growing company within the expanding electric vehicle market in India. With a diversified product range, strong distribution network, and consistent financial growth, the company is well-positioned for future expansion. However, potential investors should carefully consider the associated risks and conduct thorough due diligence before making investment decisions.