Delta Autocorp
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Jan 2025 – 09 Jan 2025
- Listing date
- 14 Jan 2025
- Face value
- ₹10 per share
- Issue price
- ₹130 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹54.60 Cr
- Market cap at offer price
- ₹199 Cr
- Promoter holding
- 97.59% → 72.76% pre-issue → post-issue
- ISIN
- INE0XRN01019
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Plot No 304 P, Pithakiarypost-Rupnarayanpur, Bardhaman, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 11,70,000 | — | — |
| Market maker | 2,94,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹130
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,40,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.21 | 5.39 |
| P/E (×) | 18.03 | 24.12 |
| Price to book (×) | 6.53 | — |
| Market cap | — | ₹199 Cr |
Key performance indicators
- Return on net worth
- 21.18%
- ROCE
- 19.32%
- Debt / equity
- 0.49
- PAT margin
- 10.64%
- NAV per share
- ₹19.91
- Price to book
- 6.53
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Delta Autocorp
Delta Autocorp Limited (Deltic) is an electric vehicle manufacturer incorporated as a Limited Liability Partnership in May 2016 and converted to a private limited company in July 2023, then to a public limited company in December 2023. The company is headquartered in Pitampura, Delhi, with a registered office in Bardhaman, West Bengal. The company manufactures and sells electric two-wheelers (2W) and three-wheelers (3W) using cutting-edge components procured from reputed Original Equipment Manufacturers (OEMs), with design and engineering specifications provided by the company itself. The company operates through a distribution network of over 300 dealers across 25 states of India as of October 31, 2024. The company's financial performance shows revenue from operations of ₹4,517.92 lakhs for the period April 1, 2024 to October 31, 2024, with a profit after tax of ₹480.81 lakhs for the same period.
Company Analysis
from RHPDelta Autocorp Limited manufactures and sells electric 2-wheelers and 3-wheelers using cutting-edge components from OEMs, operating in the electric vehicles and automotive industries.
Delta Autocorp Limited (Deltic) is an electric vehicle manufacturer incorporated as a Limited Liability Partnership in May 2016 and converted to a private limited company in July 2023, then to a public limited company in December 2023. The company is headquartered in Pitampura, Delhi, with a registered office in Bardhaman, West Bengal. The company manufactures and sells electric two-wheelers (2W) and three-wheelers (3W) using cutting-edge components procured from reputed Original Equipment Manufacturers (OEMs), with design and engineering specifications provided by the company itself. The company operates through a distribution network of over 300 dealers across 25 states of India as of October 31, 2024. The company's financial performance shows revenue from operations of ₹4,517.92 lakhs for the period April 1, 2024 to October 31, 2024, with a profit after tax of ₹480.81 lakhs for the same period.
Objects of the Issue
- Funding of Expenditure towards Setting up an Electric Three-Wheeler Fabrication Plant & Painting Plant ₹441.66 lakhs p.26
- Investment in New Product Development ₹2,132 lakhs p.26
- Funding of working capital requirement ₹1,146 lakhs p.26
- General Corporate Purposes p.26
- Offer Expenses p.26
- Funding of Expenditure towards Setting up an Electric Three-Wheeler Fabrication Plant & Painting Plant Up to ₹441.66 lakhs p.86
- Investment in New Product Development Up to ₹2132 lakhs p.93
- Funding of working capital requirement Up to ₹1146 lakhs p.96
- General Corporate Purposes p.101
- Offer Expenses p.101
Issue Structure
- Total Issue
- Up to 42,00,000 equity shares of face value of ₹10 each
- Fresh Issue
- Up to 38,88,000 equity shares aggregating up to ₹ [●] lakhs
- Offer for Sale
- Up to 3,12,000 equity shares by Ankit Agarwal aggregating up to ₹ [●] lakhs
- Price Band
- [●] to [●] per equity share (to be determined)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and sells 2W & 3W EVs using cutting edge components procured from reputed Original Equipment Manufacturers (OEMs) who use design & engineering specifications given by the company using manufacturing process. The company supplies specific components designed and compatible for its vehicles. Revenue is generated through sales of electric vehicles to dealers who distribute to end retailers.
Business Segments
SWOT Analysis
- • Established manufacturing and operational capabilities with existing UP unit(p.86)
- • Diverse product portfolio spanning 2W and 3W segments with proven design capabilities(p.96)
- • Experienced R&D team dedicated to new product innovation(p.91)
- • Track record of successful product development with multiple vehicle models(p.91)
- • Strong financial performance with consistent profitability and margin expansion(p.108)
- • Experienced promoters with 14+ years in finance, EV, logistics, and real estate(p.135)
- • ISO 9001:2015 certified manufacturing with ICAT and CIRT approvals(p.126)
- • Established dealer network across 25 states and union territories(p.126)
- • In-house R&D focused on customer-centric product design(p.135)
- • Diversified 2W and 3W product portfolio targeting mass premium segment(p.136)
- • Strong financial performance with 40.06% YoY revenue growth in FY23(p.127)
- • Strategic focus on underserved Tier-2 and Tier-3 markets(p.135)
- • Experienced promoter team with long-term involvement in automotive business(p.185)
- • Consistent revenue growth trajectory over past years(p.236)
- • Strong profit margins and profitability improvement(p.237)
- • Improved EBITDA margins demonstrating operational efficiency(p.237)
- • Successful launch of new high-speed scooter models driving growth(p.247)
- • Heavy dependence on dealer network for sales; top 5 dealers account for 36.30% of revenue in recent period(p.35)
- • Concentration of supplier base; top 5 suppliers account for 45-72% of purchases across periods(p.35)
- • Negative operating cash flow in recent periods; reported (₹538.97) lakhs for April-October 2024(p.37)
- • Unsecured loans repayable on demand; ₹536.21 lakhs outstanding as on October 31, 2024 with no fixed repayment schedule(p.38)
- • Significant related party transactions; ₹2611.50 lakhs in period July 21, 2023 to March 31, 2024(p.39)
- • Manufacturing and office premises not owned; operated on lease basis with no assurance of favorable renewal terms(p.36)
- • History of regulatory filing delays; multiple instances of late filing of statutory forms with ROC(p.42)
- • Concentration of shareholding with promoter holding 97.59% pre-Issue(p.75)
- • Historical inventory volatility requiring significant working capital(p.98)
- • Elevated short-term borrowings and leverage requiring working capital funding(p.108)
- • Dependence on vendor network for key components with imported sourcing history(p.93)
- • Limited customer base with 211 dealers and concentrated trade receivables(p.100)
- • High customer concentration with top 5 customers representing 36.30% of revenue (Apr-Oct 2024)(p.128)
- • Predominantly B2B revenue model with 99.72% of sales from B2B in Apr-Oct 2024(p.128)
- • Limited independent director experience as board recently constituted in May 2024(p.171)
- • New Company Secretary appointment with limited tenure in corporate governance role(p.180)
- • Significant increase in dependence on inventory financing and working capital(p.248)
- • Negative operating cash flows in recent period despite profitability(p.248)
- • Accumulated contingent liabilities related to customer complaints and warranty issues(p.225)
- • Rising employee benefit expenses indicating wage inflation(p.247)
- • High leverage from unsecured borrowings from related parties(p.233)
- • Electrification of 2W and 3W vehicles as an industry growth trend(p.25)
- • Growing middle class and young demographic in India driving two-wheeler segment demand(p.25)
- • Expansion into rural markets as a growth avenue(p.25)
- • Rising logistics and passenger transportation demand driving commercial vehicle growth(p.25)
- • Government subsidies under PM E-Drive and FAME schemes for domestic component manufacturing(p.93)
- • Significant market growth potential in electric vehicle segment with new model launches planned(p.96)
- • Ability to own design rights and achieve product differentiation through in-house moulds development(p.93)
- • Cost reduction potential through vertical integration and domestic production(p.93)
- • Growing electric vehicle adoption aligned with national Make in India initiative(p.93)
- • India's E2W market projected to reach 80% penetration by 2030, with current penetration at ~4.5%(p.122)
- • Government incentives including FAME scheme with Rs 1,000 crore for EV charging infrastructure(p.123)
- • Growing last-mile delivery demand driving E2W adoption for commercial applications(p.123)
- • TCO advantage of E2Ws: 20-70% lower total cost of ownership compared to ICE 2Ws(p.123)
- • Planned network expansion from 300 to 800+ dealers over 5 years(p.137)
- • India's commitment to achieve 40% installed capacity from non-fossil fuels by 2030(p.117)
- • Strategic government partnerships including D. Kumar & Sales LOI for 2,000 electric garbage carts valued at Rs 31 crore(p.126)
- • Expansion of 3-wheeler segment with strong dealer network growth(p.247)
- • Continued new product launches and market diversification(p.247)
- • Leveraging IPO to strengthen balance sheet and reduce reliance on related party borrowings(p.233)
- • Gross margins improvement through economies of scale in manufacturing(p.245)
- • Highly competitive automotive market with larger competitors having greater financial resources(p.36)
- • New regulatory requirements for battery safety (AIS156 Phase-II) may delay production timelines(p.37)
- • Vulnerability to transportation disruptions and infrastructure gaps affecting distribution(p.36)
- • Dependence on third-party logistics with no long-term agreements and rising transportation costs(p.36)
- • Exposure to Indian economic slowdown and global financial instability risks(p.49)
- • Risks from pandemics and disease outbreaks affecting operations and supply chain(p.48)
- • Volatile exchange rates and foreign exchange risks affecting costs(p.48)
- • Risk of equity share price decline below offer price based on historical IPO performance(p.51)
- • Market price volatility unrelated to company performance affecting investor returns(p.51)
- • Regulatory surveillance measures (ASM/GSM) that may impact trading and valuation(p.51)
- • Intense competition from established electric vehicle manufacturers and new entrants(p.91)
- • Dependence on government approvals for plant operations and new model launches(p.91)
- • Intense competition from established OEMs with larger scale and resources(p.157)
- • Reduction in FAME subsidy causing E2W registrations to decline in Q2 FY2024(p.122)
- • Dependence on imported components and raw materials from China (9.95% of purchases)(p.153)
- • Rising input costs and price sensitivity in mass-market 2W segment(p.157)
- • Regulatory changes in electric vehicle standards and battery management rules(p.124)
- • Technology obsolescence risk and rapid evolution of battery chemistry (transition to LFP)(p.126)
- • Economic volatility and declining consumer purchasing power affecting demand(p.237)
- • Intense competition from established and new market entrants(p.237)
- • Fragmented industry with low entry barriers intensifying price competition(p.237)
- • Rising raw material and operational costs pressuring margins(p.247)
- • Pending litigation and regulatory demands creating financial exposure(p.229)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ankit Agarwal | Promoter/Selling Shareholder | 79.65% | — |
| Mrs. Priyanka Agarwal | Promoter | 10.44% | — |
| Mr. Sanwarmall Agarwalla | Promoter | 1.50% | — |
| Ankit Agarwal | Promoter | 79.65% | — |
| Priyanka Agarwal | Promoter | 10.44% | — |
| Sanwarmall Agarwalla | Promoter | 1.50% | — |
| Bhama Agarwalla | Promoter Group | 1.50% | — |
| Parsuram Sanwarmall Agarwalla & Sons HUF | Promoter Group | 1.50% | — |
| Ankit Agarwal HUF | Promoter Group | 3.00% | — |
| Ankit Agarwal | Promoter | 79.65% | — |
| Priyanka Agarwal | Promoter | 10.44% | — |
| Sanwarmall Agarwalla | Promoter | 1.50% | — |
| Ankit Agarwal | Promoter | 79.66% | — |
| Priyanka Agarwal | Promoter | 10.44% | — |
| Sanwarmall Agarwalla | Promoter | 1.50% | — |
| Ankit Agarwal | Promoter and Selling Shareholder | — | — |
| Ankit Agarwal | Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.