Emmforce Autotech IPO GMP is giving indications of 102 percent earning.

Emmforce Autotech IPO: Autotech company's IPO opened today, GMP is giving indications of 102 percent earning.

Emmforce Autotech IPO The IPO of auto parts manufacturing company Emmforce Autotech Limited has opened for subscription.

Emmforce Autotech IPO: The IPO of auto component manufacturing company Emmforce Autotech Limited has opened today i.e. on Tuesday, 23 April. This is an SME IPO through which the company is trying to raise Rs 53.90 crore. The face value of the company's shares is Rs 10 per share. Even before opening, this IPO is trending with huge premium on GMP.

The IPO of Amforce Autotech has opened today i.e. 23rd April 2024. Investors can invest in this IPO till 25 April 2024. The company is selling 5,499,600 shares through this IPO. The company is issuing completely fresh shares through IPO. The price band of the company's shares has been fixed between Rs 93 to Rs 95 per share.

When will the shares be listed?

The allotment of shares of Amforce Autotech Limited is going to happen on 26 April 2024. Whereas unsuccessful investors will get refund on April 29. The shares will be transferred to the demat account on April 29. The listing of shares will take place on 30 April 2024. The company has fixed a lot size of 1200 shares.In such a situation, retail investors can bid Rs 1,17,600 at a time. In this IPO, 50 percent share in the IPO has been reserved for qualified institutional buyers, 35 percent share for retail investors and 15 percent share for non-institutional buyers.

The company is giving indications of strong GMP:

Shares of Amforce Autotech Limited are indicating a strong premium on GMP. According to investorgain.com, the company's shares are trending on the gray market at a premium of Rs 100 i.e. 102.04 percent. In such a situation, if this situation persists on the day of listing, then the shares can be listed at Rs 198.

Why Is Automforce Autotech Raising Rs 15.34 CR from?

Commencing today, April 23, Emmforce's IPO is scheduled to conclude on Thursday, April 25, 2024.

By offering 1.56 million shares at a price of Rs 98 each, Emmforce Autotech, a leading automotive components manufacturer, has managed to raise Rs 15.34 crore from anchor investors. Notable investors, including BofA Securities Europe and Astorne Capital, have shown interest in this offering.

To raise Rs. 53.9 crore, the company plans to utilize the net proceeds from the offering to invest in its subsidiary company, Emmforce Mobility Solutions, for the purpose of establishing a new plant. Furthermore, these funds will be allocated towards fulfilling the company's working capital requirements and for general corporate use.

The initial public offering (IPO) has set a price range of Rs 93 to Rs 98 per share, with a minimum lot size of 1200 shares. Retail investors are required to make a minimum investment of Rs 1,17,600, whereas high net worth individuals (HNIs) must invest in 2 lots (2,400 shares) totaling Rs 2,35,200.

The organization has designated 276,000 equity shares for market maker Spread X Securities, 783,000 equity shares for HNIs, 1,566,000 equity shares for anchor investors, 1,045,000 equity shares for qualified institutional buyers (QIBs) quota, and the retail portion consists of 1,828,000 equity shares with a lot size of 1,200 shares.

Beeline Capital Advisors Private Limited acts as the exclusive Book Running Lead Manager, while Link Intime India Private Limited serves as the Registrar for the offering. The company, headquartered in Panchkula, specializes in the production of specialized automotive drivetrain components. Its sales predominantly consist of exports to six continents, with a focus on North America and Asia.

During Q3FY24, the company's revenue declined by 1.7% to Rs 47.90 crore, down from Rs 48.75 crore. On a positive note, the company's net profit in the December quarter of 2023 reached Rs 5.1 crore, showing an improvement from the Rs 4.3 crore profit in the same quarter of the previous year.