Delta Autocorp Limited IPO GMP, Price, Date, and Details
Prominent manufacturer of electric two wheelers and electric three wheelers under the “Deltic” brand, Delta Autocorp Limited is all about the equity market debut (IPO). This blog covers the entire(IO), providing its schedule, finances and objectives, and the market sentiment (as indicated by Grey Market Premium). Find detailed insights below for Investors, analysts and market enthusiasts to make informed decisions.
Delta Autocorp Limited IPO Schedule
The IPO of Delta Autocorp Limited opens for subscription from January 7, 2025 to January 9, 2025. Below is a detailed timeline of important dates:
Issue Opens: January 7, 2025
Issue Closes: January 9, 2025
Allotment Finalization: January 10, 2025
Refunds Initiated: January 13, 2025
Shares Credited to Demat Accounts: January 13, 2025
Listing Date: January 14, 2025
This is partially because it’s focused on a growth sector, the electric vehicle (EV), which is projected to be a growth sector.
Delta Autocorp Limited IPO Issue Details
The IPO comprises a combination of a fresh issue and an offer for sale, with the following key details:
Total Issue Size: ₹54.60 crore
Fresh Issue: That was 88 lakh shares worth ₹50.54 crore
Offer for Sale (OFS): Aggregating to ₹4.06 crore of 12 lakh shares.
Price Band: ₹123 to ₹130 per share
Face Value: ₹10 per share
Lot Size: 1,000 shares
Minimum Investment: ₹1,30,000
The proceeds from the fresh issue will primarily be deployed to fund growth initiatives and the OFS will provide existing shareholders with the ability, in part, to partially liquidate their holdings.
Delta Autocorp IPO Objectives
Delta Autocorp Limited has laid out specific objectives for utilizing the IPO proceeds:
Setting Up New Facilities: To increase production capacity and cope with increasing demand, the company says it plans to set up an electric three-wheeler fabrication and painting plant.
Product Development: New electric vehicles models and innovations.
Working Capital: Sustaining day to day operations and scaling production by augmenting working capital.
General Corporate Purposes: To help fund the overall general business needs and boost overall operational efficiencies.
Offer Expenses: Paying the costs of running an IPO process.
Delta Autocorp Limited IPO GMP
When an IPO starts trading, the Grey Market Premium (GMP) gives insight into terms market sentiment has around an IPO before it’s actually listed. As on 6th January, 2025, the Delta Autocorp Limited IPO GMP is almost around ₹ 70 per share. This means a potential price band of ₹200, nearly a 54% premium over the upper price band of ₹130. GMP does not guarantee listing gains but it is so strong indicator of interest among investors.
Delta Autocorp Limited Company Overview
The Delhi based EV company Delta Autocorp Limited was incorporated in the year 2016 and in a very short time has established itself as a leading company in the EV industry in India. “Deltic” is the company’s brand which targets Tier 2 and Tier 3 towns customers since they provide and sell affordable and durable e bikes and ebikes. Delta Autocorp has extensive selling networking involving around over 300 dealers across 25 states and Union Territory of India.
An ever-expanding number of customers support the company’s environmental and social responsibility as well as the goal of providing affordable products. Pure electric vehicles of its type are designed with fossil fuel independence and low emissions in order to fulfill worldwide and local environmental imperatives.
Financial Performance OF Delta Autocorp Limited
Delta Autocorp Limited’s analysis of the scorecard using the database of financial strength of companies in the auto sector has revealed the company’s financial performance in the past three financial years of operation, which is a good pointer to positive growth and profitability in preparation for the IPO. Below is an overview of its financial metrics:
Key Insights:
Revenue Growth:
Delta Autocorp Limited’s revenue has grown significantly over three years:From Rs 16.74 crores in FY 2021 to Rs 80.56 crores in FY 203.
This implies a CAGR of over 100 percent, testifying to strong sales growth based on rising consumer/server uptake of electric two-wheelers as well as three-wheelers.
Profitability:
The PAT has a Postal drive transformation from ₹0.42 crore of Fiscal 2021 to ₹5.13 crore of Fiscal 2023 to underline the passage of the company profitably.
The PAT margin has remained constant in FY 2023 based on operation improvements even though there is a challenge in scaling.
Scalability and Market Penetration:
Thus, the analysed data of revenue and profitability indicate the effectiveness of the company’s expansion strategy of the affordable electric vehicles to the tier-2 and tier-3 markets.
Operational Efficiency:
Although the PAT margin dipped slightly in FY 2023 compared to FY 2022, the absolute profit figure increased, suggesting that the company is reinvesting in its growth while maintaining operational efficiency.
Industry Outlook OF Delta Autocorp Limited
Being the second largest populous country, India is slated for an electric vehicle revolution motivated by state incentives, surge in fuel prices and increased consciousness in the global warming issues. The EV market penetration projections for the private cars in the year 2030 are 30%, commercial vehicles at 70%, two-wheeler and three-wheeler at 80%. Delta Autocorp is the ideal company to ride this burgeoning market on account of its focus on the affordable EV market.
Delta Autocorp IPO Listing Details
Our Delta Autocorp Limited shares will be listed on the NSE SME platform on 14th January 2025. With stricter compliance requirements compared to Mainboard IPOs, SME IPOs focus on the smaller investors and companies can raise funds at a lesser level of compliance.
Delta Autocorp Key Strengths
Strong Distribution Network: Widespread reach is provided by over 300 dealers.
Growing Market Share: Tiers 2 and 3 focused penetration.
Sustainability-Focused Products: What needs to be addressed on the environmental front with affordable EVs.
Experienced Management: An automotive manufacturing and innovation expertise leadership team.
Delta Autocorp IPO Risks and Challenges
While the company’s prospects appear promising, potential investors should consider the following risks:
Competition: It is important to note that market competition between the incumbent as well as new entrant players is very much intense in the EV market.
Policy Dependence: Much of the industry’s growth hinges on government incentives and policies.
Supply Chain Disruptions: There may be risks if a reliance on imports contributes to a reliance on key components, such as batteries.
SME IPO Risks: SME platform stocks, generally, of lesser liquidity and high volatile.
Delta Autocorp Limited IPO Investor Considerations
Delta Autocorp’s IPO is a great investment option, not least for investors looking to secure a piece of India’s burgeoning EV market. Yet, these aren’t the things you have to evaluate before you invest: You have to evaluate the company’s financials, growth potential and industry risks.
You should also discuss with your financial advisor how to invest it with respect to your particular financial situation and risk profile.
Conclusion
Delta Autocorp IPO is a crucial achievement for the company as it diversifies to offer electric vehicles. The basic financial ratios, the company’s development plan, and the overall investment climate are all positive, which is why the IPO attracted a great deal of attention. The Grey Market Premium therefore signals good listing but this is a common skill of analyzing any investment.
Thus, defining the IPO’s success the key factors that will be making the major impacts are the market conditions and the full and efficient implementation of the laid down plans. As India remains committed to a green approach to mobility, Delta Autocorp stands ready to surf the rising electric vehicle market
FAQ'S
What is the Delta Autocorp Limited IPO ?
The Delta Autocorp Limited IPO is an Initial Public Offering through which the company plans to raise ₹54.6 crore by issuing equity shares to the public.
When does the Delta Autocorp Limited IPO open and close ?
The IPO opens on January 7, 2025, and closes on January 9, 2025.
What is the price band for the Delta Autocorp Limited IPO ?
The price band is set between ₹123 and ₹130 per equity share.
What is the lot size for the Delta Autocorp Limited IPO ?
Investors need to apply for a minimum of 1,000 shares, which amounts to ₹1,23,000 at the lower end of the price band.
What is the for Delta Autocorp Limited IPO GMP ?
As per recent updates, the Grey Market Premium (GMP) is ₹85, indicating strong investor demand.
