Delta Autocorp Limited, a leading player in the electric vehicle (EV) industry, is set to launch its initial public offering (IPO) on January 7, 2025. The issue will close on January 9, 2025, with shares expected to be listed on NSE SME on January 14, 2025.

IPO Details

• Issue Size: ₹54.60 crores
  • Fresh Issue: ₹50.54 crores (38.88 lakh shares)
  • Offer for Sale (OFS): ₹4.06 crores (3.12 lakh shares)
• Price Band: ₹123 to ₹130 per share
• Minimum Lot Size: 1,000 shares
• Retail Investment Minimum: ₹1,30,000
• HNI Minimum Investment: ₹2,60,000 (2 lots of 2,000 shares)
• IPO Registrar: Link Intime India Private Ltd
• Lead Manager: GYR Capital Advisors Private Limited
• Market Maker: Giriraj Stock Broking Private Limited
• Tentative Listing Date: January 14, 2025
• Allotment Finalization Date: January 10, 2025

About Delta Autocorp Limited

Incorporated in 2016, Delta Autocorp Limited is a fast-growing EV manufacturer engaged in the production and sale of electric two-wheelers (2W) and three-wheelers (3W) under the "Deltic" brand.

Milestones

• 2017: Launched its first electric rickshaw, offering a mileage of over 150 km.
• 2019: Expanded into electric scooters, targeting tier-2 and tier-3 towns with affordable, durable models.

Product Range

1. Electric 2-Wheelers (Scooters):

   • Deltic Drixx
   • Deltic Trento

2. Electric 3-Wheelers:

   • Passenger Rickshaws: Deltic Star, Deltic Vayu
   • Loaders: Electric cargo carriers
   • Garbage Carts: Designed for municipal use

3. Accessories and Spare Parts: Motors, controllers, and other components for 2W and 3W vehicles.

Operations

• Dealership Network: Over 300 dealers across 25 states and Union Territories.
• R&D Focus: Dedicated team in Uttar Pradesh developing innovative EV solutions tailored to customer needs.

As of October 31, 2024, the company employed 139 people across its manufacturing and R&D facilities.

Competitive Strengths

• Experienced Management: Led by seasoned promoters and a professional team.
• Customer-Centric Approach: Products designed based on customer insights and needs.
• In-House R&D: Focus on developing innovative, high-quality EVs.
• Diverse Product Portfolio: Range includes passenger and commercial EVs, spare parts, and accessories.
• Strategic Distribution: Strong dealership network and targeted marketing in tier-2 and tier-3 towns.
• Quality Assurance: Certified for high standards and rigorous quality testing.
• Mass Premium Segment: Targeting affordable EVs with premium features for broader appeal.

Objects of the Issue

The IPO proceeds will be used for:

1. Setting Up a Fabrication and Painting Plant: Expansion to enhance production capacity for electric three-wheelers.
2. New Product Development: Investment in designing and launching innovative EV models.
3. Working Capital Requirements: Supporting operational growth and scaling activities.
4. General Corporate Purposes: Meeting general expenses for business expansion.
5. Offer Expenses: Covering costs related to the IPO.

Important Dates

• Subscription Opens: January 7, 2025
• Subscription Closes: January 9, 2025
• Allotment Finalization: January 10, 2025
• Listing Date: January 14, 2025

Investment Highlights

• Affordable EVs for Emerging Markets: Delta Autocorp’s products cater to tier-2 and tier-3 towns, meeting the rising demand for sustainable and cost-effective transportation solutions.
• Strong Market Presence: The company's extensive dealership network and customer focus provide a competitive edge.
• Innovation-Driven Growth: In-house R&D capabilities enable the development of advanced EVs tailored to market needs.

Conclusion

Delta Autocorp IPO presents an exciting opportunity for investors looking to enter the rapidly growing electric vehicle sector. With its strong operational foundation, diverse product portfolio, and strategic growth initiatives, the company is well-positioned to capture a significant share of the Indian EV market.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels and B R Goyal.

The Current active IPO are   Fabtech Technologies, Davin Sons and Parmeshwar Metal.