Emmforce Autotech
Book Building issueSME₹53.90 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹53.90 Cr
1 lot at cut-off
₹1,17,600
Lot size
1,200shares
Open
23 Apr 2024
Close
25 Apr 2024
Allotment
26 Apr 2024
Listing
30 Apr 2024
Listing performance
Issue price
₹98
Listed at
₹186.20
Listing-day close
₹195.51
Latest price
₹176.90
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+80.51%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Apr 2024 – 25 Apr 2024
- Listing date
- 30 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹98 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹53.90 Cr
- Market cap at offer price
- ₹201 Cr
- Promoter holding
- 100.00% → 73.17% pre-issue → post-issue
- ISIN
- INE0SDC01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Plot No.287, Industrial Area, Phase II Industrial Estate, Haryana
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 | 15,66,000 | — | — |
| Market maker | 2,76,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹98
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,17,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,35,200 |
| S-HNI (max) | 8 | 9,600 | ₹9,40,800 |
| B-HNI (min) | 9 | 10,800 | ₹10,58,400 |
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.
Shares allocated
15,66,000
Anchor portion
₹15.35 Cr
at ₹98 per share
Valuation and performance
Valuation at offer price
₹98 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.93 | 4.28 |
| P/E (×) | 33.45 | 22.90 |
| Price to book (×) | 9.52 | — |
| Market cap | — | ₹201 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 2.83%
- PAT margin
- 8.42%
- NAV per share
- ₹10.29
- Price to book
- 9.52
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Emmforce Autotech
Emmforce Autotech Limited is engaged in the business of manufacturing niche automotive drivetrain parts including Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools and various differential forged/cast parts primarily for 4-wheel drive and performance racing vehicles. The company was originally formed as a partnership firm under the name M/s. Emmforce Inc. pursuant to a Deed of Partnership dated September 25, 2012, and was converted into a Limited Company on October 13, 2023. The company has been engaged in exports since its inception and has established itself as a manufacturer of drivetrain parts in India, positioning itself as a one-stop shop for quality cost-competitive drivetrain parts.
Company Analysis
from RHPEmmforce Autotech Limited manufactures niche automotive drivetrain parts for 4-wheel drive and performance racing vehicles, serving the automotive components industry.
Emmforce Autotech Limited is engaged in the business of manufacturing niche automotive drivetrain parts including Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools and various differential forged/cast parts primarily for 4-wheel drive and performance racing vehicles. The company was originally formed as a partnership firm under the name M/s. Emmforce Inc. pursuant to a Deed of Partnership dated September 25, 2012, and was converted into a Limited Company on October 13, 2023. The company has been engaged in exports since its inception and has established itself as a manufacturer of drivetrain parts in India, positioning itself as a one-stop shop for quality cost-competitive drivetrain parts.
automotive componentsdrivetrain manufacturingautomotive engineering
Objects of the Issue
- Investment in Subsidiary Company i.e. Emmforce Mobility Solutions Private Limited (EMSPL) in form of equity or debt for meeting the requirement of working capital and margin money for term loan of Subsidiary Company ₹1000.00 Lakhs p.20
- To Meet Working Capital Requirement of our Company ₹2700.00 Lakhs p.20
- General Corporate Expenses p.20
- Investment in Subsidiary Company i.e. Emmforce Mobility Solutions Private Limited (EMSPL) in form of equity or debt for meeting the requirement of working capital and margin money for term loan of Subsidiary Company ₹1,000.00 Lakhs p.78
- To Meet Working Capital Requirement of our Company ₹2,700.00 Lakhs p.78
- General Corporate Purposes [●] p.78
- Working Capital requirement p.215
- General corporate purposes p.215
- Issue expenses p.215
Issue Structure
- Total Issue
- ₹[●] Lakhs
- Fresh Issue
- 54,99,600 Equity Shares of ₹10/- each aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10.00 each
Business Model
The company manufactures and exports automotive drivetrain components to domestic and overseas customers, generating revenue from the sale of automotive components used in 4-wheel drive vehicles and performance racing vehicles.
Business Segments
Manufacturing niche automotive drivetrain parts including Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools and various differential forged/cast parts primarily for 4-wheel drive and performance racing vehicles
Manufacturing of niche automotive drivetrain parts including Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles & Shafts, Gear Shifters, Yokes, Differential Spools and various differential forged/cast parts for 4-wheel drive and performance racing vehicles; more than 95% exported
Manufacturing of Rotavator Blades and Steel Forgings for automotive/engineering industry; setting up plant at Plot 3&5 EPIP Phase1, Jharmajri, Baddi, Himachal Pradesh for manufacturing rotavator blades and steel forging
Manufacture of wide variety of Differential Forged/Cast Parts like Differential Housings, Differential Lockers, Differential Covers, Gear Shifters, Yokes, Differential Spools, Pinion Supports, etc. under one roof at its fully integrated manufacturing plant at Baddi, Himachal Pradesh.
Manufacture of extensive range of 4WD Locking Hubs, Floater Hubs and Spindles. 4WD locking hubs play a crucial role in the operation of a four-wheel-drive (4WD) vehicle and allow manual engagement or disengagement of front wheels from the front axle. Spindles serve as the mounting point for front/rear wheels and are designed to bear the weight of the vehicle.
Development and manufacture of special differential tools like Clamshell style bearing pullers for differential housing spreaders that not only save the parts but also make the life of mechanics easier.
Development of proprietary hydraulic gear pumps for dump trucks. After years of Research and Development, the company recently gained breakthrough in developing a hydraulic gear pump for dump trucks that has passed various in-house endurance tests and field tests for more than 3 years.
Manufacturing of forgings and Rotary Tiller Blades through subsidiary Emmforce Mobility Solutions Pvt. Ltd. The rotary tiller blade plant is highly automated through robots and transfer presses with majority of key equipment being Japanese and procured from industry leaders.
Manufacturing of differential housings, lockers, covers, 4WD locking hubs, spindles, axles, shafts, gear shifters, yokes, differential spools and tools
SWOT Analysis
Strengths
- • Established manufacturer of niche automotive drivetrain parts with export capability(p.20)
- • One-stop shop for quality cost-competitive drivetrain parts with design and development capabilities(p.20)
- • Established export market with 93-95% revenue from exports to USA and developed markets(p.82)
- • Niche automotive components manufacturing with specialized product portfolio(p.82)
- • Strong profitability with PAT margins between 9.6-10.6% historically(p.90)
- • Established customer relationships with loyal and regular customers(p.83)
- • Subsidiary company operational with commercial production from February 2024(p.81)
- • Diverse product portfolio of niche drivetrain parts under one roof(p.117)
- • Limited competition in niche product segments(p.117)
- • Long-term customer relationships and diverse customer base(p.117)
- • Integrated manufacturing facilities reducing lead times(p.117)
- • In-house R&D and automation capabilities(p.117)
- • Experienced management team with deep industry expertise(p.117)
- • Engineering and product development capabilities(p.117)
- • Sustained financial performance and strong financial position(p.117)
Weaknesses
- • Heavy concentration of customer base in top few customers(p.29)
- • High concentration of supplier base with top 10 suppliers contributing majority of purchases(p.30)
- • Substantial outstanding indebtedness requiring significant cash flows(p.32)
- • Unsecured loans from Directors that can be recalled at any time(p.33)
- • Recently incorporated company with ongoing regulatory compliance challenges(p.33)
- • Leased properties not owned by company, with lease renewal risks(p.31)
- • Negative cash flows from financing activities in prior years(p.30)
- • Severe dependence on top customers with top 1 customer contributing 61-70% of revenue(p.90)
- • High short-term borrowings of Rs 1919.42 lakhs as of October 31, 2023(p.47)
- • Recently incorporated company with limited operational history since October 13, 2023(p.50)
- • Significant recent revenue decline from Rs 6906.29 lakhs (FY 2021-22) to Rs 4569.08 lakhs (FY 2022-23)(p.47)
- • High trade receivables of Rs 2031.97 lakhs as of October 31, 2023 due to extended customer credit terms(p.83)
- • Low bargaining power with suppliers due to low sales volumes(p.117)
- • High customer concentration risk(p.117)
- • High supplier concentration risk(p.118)
- • Heavy dependence on few customers(p.197)
- • High debt-to-equity ratio with significant leverage(p.184)
- • Volatile financial performance with steep decline in recent fiscal year(p.193)
- • Rising employee benefit expenses as percentage of revenue(p.194)
- • Declining trade receivables turnover indicating slowing collections(p.167)
- • Outstanding tax demands against company and directors(p.201)
- • Mandatory 2-year listing on SME platform before main board migration(p.229)
- • Compulsory market making obligation for 3 years post-listing(p.230)
Opportunities
- • Growing Indian automotive component industry with projected GDP contribution increase(p.20)
- • Expansion into new markets and customer relationships(p.32)
- • Expansion of working capital to support revenue growth from subsidiary company operations(p.78)
- • India's strong automotive sector growth and Make in India initiative supporting manufacturing expansion(p.104)
- • Subsidiary company eligible for lower 17.16% income tax rate creating 6.4% advantage for parent company(p.81)
- • India emerging as fastest growing major economy with improving business sentiment(p.102)
- • Strong government support for manufacturing through PLI schemes and industrial development initiatives(p.103)
- • Growth potential in global OEM and product distribution segments(p.117)
- • Expansion into untapped segments (agriculture, off-highway, EV, railways, defence)(p.117)
- • Geographic expansion into new territories(p.117)
- • EV market development and new product launches(p.112)
- • Government incentives and PLI schemes for auto components(p.108)
- • Growing EV charging infrastructure development(p.109)
- • Investment in subsidiary for rotary tiller blade manufacturing with advanced automation(p.189)
- • Expanding integrated engineering solutions from product development to manufacturing(p.189)
- • Leveraging existing tooling inventory to accelerate new product development(p.189)
- • Path to migrate to Main Board after minimum 2-year SME tenure with specific criteria(p.229)
- • Ability to raise capital through further issuance with shareholder approval(p.264)
- • Access to public capital markets through IPO proceeds(p.260)
Threats
- • Heavy dependence on automobile sector performance and market fluctuations(p.26)
- • Intense competition in automotive components industry(p.31)
- • Foreign exchange volatility affecting export revenues(p.28)
- • Dependency on third-party suppliers and transportation services(p.28)
- • Risk of disruption to manufacturing operations due to power supply and machinery failures(p.27)
- • Stringent regulatory and environmental compliance requirements(p.28)
- • Risk of penalties and tax demands from statutory authorities(p.37)
- • Exposure to Indian economic slowdown and market conditions(p.42)
- • Risk from new and evolving tax regulations including GST and GAAR(p.41)
- • Significant changes in Government of India's economic liberalization and deregulation policies could adversely affect business(p.44)
- • Dependency on US market exposure with 93-99% exports creating foreign exchange and trade policy risks(p.83)
- • Global economic slowdown with world growth forecast declining from 3.5% (2022) to 2.9% (2024)(p.96)
- • Potential changes in automotive industry regulations and customer procurement standards(p.44)
- • Supply chain disruptions and working capital intensive business requiring substantial inventory holdings(p.81)
- • Increased competition from local and big players(p.117)
- • Changes in government export policies(p.117)
- • Geopolitical risks affecting export markets(p.117)
- • Dependence on North America export market(p.106)
- • Global economic slowdown impact(p.106)
- • Inventory management challenges and oversupply in customer base(p.194)
- • Revenue and profit sensitive to market cyclicality and economic conditions(p.190)
- • Exposure to foreign exchange fluctuation risks(p.190)
- • Dependence on manufacturing and raw material availability(p.190)
- • Foreign investment subject to FDI policy caps and regulatory approvals(p.261)
- • OCBs (Overseas Corporate Bodies) prohibited from participating in the issue(p.238)
- • FPI holding subject to 10% individual and 24% aggregate caps(p.261)
- • NRI/OCI holding restricted to 5% individual and 10% aggregate caps(p.262)
- • Regulatory risk from amendments to applicable laws post-prospectus(p.262)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ashok Mehta | Promoter | 50.00% | 36.59% |
| Mrs. Neetu Mehta | Promoter | 50.00% | 36.58% |
| Mr. Azeez Mehta | Promoter | Negligible | Negligible |
| Mr. Ashok Mehta | Promoter | 50.00% | 36.59% |
| Mrs. Neetu Mehta | Promoter | 50.00% | 36.58% |
| Mr. Azeez Mehta | Promoter | Negligible | Negligible |
| Ms. Navya Mehta | Promoter Group | Negligible | Negligible |
| Mr. Narinder Krishan Miglani | Promoter Group | Negligible | Negligible |
| Mr. Gaurav Miglani | Promoter Group | Negligible | Negligible |
| Mr. Saurav Miglani | Promoter Group | Negligible | Negligible |
| Mr. Ashok Mehta | Promoter | 50% | — |
| Mrs. Neetu Mehta | Promoter | 50% | — |
| Mr. Azeez Mehta | Promoter | 0.00% | — |
| Ashok Mehta | Promoter | 50.00% | — |
| Neetu Mehta | Promoter | 49.99% | — |
| Azeez Mehta | Promoter | 0.00% | — |
Leadership
Mr. Ashok Mehta · Chairman/Managing Director
Mr. Azeez Mehta · Chief Financial Officer
Ms. Parul Gupta · Company Secretary and Compliance Officer
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.
Emmforce Autotech IPO FAQs
What is the lot size of Emmforce Autotech IPO?
The minimum lot size of Emmforce Autotech IPO is 1,200 shares. One lot costs ₹1,17,600 at the cut-off price.
When does Emmforce Autotech IPO open and close?
Emmforce Autotech IPO opened for subscription on 23 Apr 2024 and closed on 25 Apr 2024.
What is the listing date of Emmforce Autotech IPO?
Emmforce Autotech IPO listed on 30 Apr 2024.