Delta Autocorp Limited, a rising player in the electric vehicle (EV) sector, has launched its IPO to raise funds for its expansion. The company aims to make EVs more accessible across India, capitalizing on growing demand for sustainable transportation solutions. Here's a comprehensive breakdown of the Delta Autocorp IPO.

Delta Autocorp IPO Overview: The IPO, which opened on January 7, 2025, and closes on January 9, 2025, is a book-built issue amounting to ₹54.60 crores. The offer comprises a fresh issue of 38.88 lakh shares, valued at ₹50.54 crores, and an offer for sale of 3.12 lakh shares totaling ₹4.05 crores. At the upper price band of ₹130 per share, the company's market capitalization will be ₹198.76 crores.

The share price band for the IPO is ₹123 to ₹130 per share, with a lot size of 1,000 shares. Retail investors need to invest a minimum of ₹1,30,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,60,000 for two lots. The listing of shares is expected on or around January 14, 2025.

Delta Autocorp's Financial Performance: The company's revenue has shown steady growth over the past few years. For the period ending October 31, 2024, the revenue stood at ₹4,527.53 lakh, compared to ₹6,334.53 lakh in FY 2023. The profit after tax (PAT) for the same period is ₹480.81 lakh, up from ₹420.34 lakh in FY 2022, indicating consistent financial health.

Key financial ratios show promising results:

• ROCE (Return on Capital Employed): 40.32%
• ROE (Return on Equity): 45.89%
• RoNW (Return on Net Worth): 36.88%

The pre-issue earnings per share (EPS) stands at ₹9.51, with a post-issue EPS of ₹4.55. The company's P/E ratio is 13.67x before the issue and 28.57x after, which is lower than the industry average of 73x, making it fairly priced compared to its peers in the EV industry.

Delta Autocorp IPO Grey Market Premium (GMP): As of January 7, 2025, the GMP for Delta Autocorp IPO is ₹80, reflecting a potential listing gain of 61.54%. The GMP has been rising steadily, as shown in the IPO's day-wise trend. On January 5, 2025, the GMP was ₹40, and it jumped to ₹80 by January 7, indicating strong investor sentiment.

Delta Autocorp IPO Subscription Status: As of January 9, 2025, the IPO has been subscribed 76.80 times, signaling robust demand among investors. This is a positive indicator for potential listing gains.

Anchor Investors: Delta Autocorp has secured ₹15.21 crores from anchor investors, who have been allotted 11.7 lakh shares at ₹130 per share. This backing from prominent investors adds credibility to the IPO.

Delta Autocorp: A Leader in Electric Vehicles: Delta Autocorp's electric vehicles have already established a strong presence across India's diverse terrains, from urban cities to rural regions, covering 24 states. With 7 years of market research, the company has created EVs known for their impeccable build quality, fit, and design, making them highly appealing to Indian consumers looking for durable and cost-effective alternatives to traditional vehicles.

The company's two promoters, Mr. Ankit Agarwal and Mrs. Priyanka Agarwal, bring over 14 years of experience in various domains, including finance, research, logistics, and electric vehicle development.

Conclusion: Delta Autocorp’s IPO presents an exciting opportunity for investors looking to get involved in the growing EV sector in India. With strong financials, a growing market for EVs, and a promising Grey Market Premium, this IPO is likely to attract risky investors seeking listing gains. We recommend applying to the Delta Autocorp IPO for those looking to capitalize on the long-term growth potential of the EV market.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms and Laxmi Dental.

The Current active IPO are Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal.