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Delta Autocorp IPO subscribed 12.09 times on Day 2. Check GMP and other details
Team Finance Saathi
08/Jan/2025
What's covered under the Article:
- Delta Autocorp IPO offers a price band of ₹123-₹130 per share, with a total issue size of ₹54.60 Crores.
- Grey Market Premium (GMP) of ₹80 suggests strong listing gains of 61.54%.
- Financials show consistent growth in revenues and profitability, with strong ROCE and ROE metrics.
Delta Autocorp Limited is a leading electric vehicle manufacturer and a prominent player in the climate tech sector in India. The company specializes in electric mobility solutions, particularly for rugged terrains, with a deep focus on EV technology and sustainability. Over the years, Delta Autocorp has established its market presence in 24 states across India, with a proven track record of exceptional vehicle performance and impeccable build quality. The company is driven by its passionate team, backed by over 7 years of market research and a commitment to perfection in manufacturing.
The Delta Autocorp IPO is a book-built issue of ₹54.60 Crores, with a fresh issue of 38.88 lakh shares worth ₹50.54 Crores and an offer for sale of 3.12 lakh shares totaling ₹4.05 Crores. The IPO price band is set between ₹123 and ₹130 per equity share. The subscription period opens on January 07, 2025, and closes on January 09, 2025, with the listing date expected to be on January 14, 2025, on the NSE SME platform.
At the upper price band of ₹130 per share, the company’s market capitalization will be approximately ₹198.76 Crores. The lot size for the IPO is 1,000 shares, with retail investors required to invest a minimum of ₹1,30,000. High-Net-Worth Individuals (HNIs) are required to apply for a minimum of 2 lots (2,000 shares), amounting to ₹2,60,000.
Subscription and Grey Market Premium (GMP):
As of January 07, 2025, the Grey Market Premium (GMP) for Delta Autocorp IPO is ₹80, suggesting a listing gain potential of 61.54% if the stock lists at the expected price of ₹210. The strong GMP indicates high market enthusiasm for the IPO, driven by the growing electric vehicle industry in India and the company’s strong market presence.
Financial Performance and Valuation:
Delta Autocorp has shown consistent growth in its financials, with revenues from operations for the period ending October 31, 2024, reported at ₹4,527.53 lakh. This represents a decline from the previous fiscal years, but still indicates a solid revenue base for continued expansion.
- EBITDA for FY2024 stands at ₹675.49 lakh, showing a decrease from ₹952.40 lakh in FY2023, but still strong.
- Profit After Tax (PAT) has been healthy, with ₹480.81 lakh for the period ending October 31, 2024, and a positive trajectory over the past few years, suggesting robust profitability.
Key performance metrics indicate the following:
- Pre-issue EPS of ₹9.51 and post-issue EPS of ₹4.55 for FY24.
- Pre-issue P/E ratio of 13.67x and post-issue P/E ratio of 28.57x, with the industry P/E ratio standing at 73x.
- Return on Capital Employed (ROCE) for FY24 is 40.32%, and Return on Equity (ROE) is 45.89%, highlighting the company’s efficient use of capital and strong profitability.
Investment Recommendation:
The Delta Autocorp IPO offers a fairly priced investment opportunity, with a strong GMP suggesting substantial potential for listing gains of up to 61.54%. The company’s steady revenue and profit growth, combined with its strong ROCE and ROE, makes this a compelling investment option for risk-tolerant investors looking to benefit from the electric vehicle sector’s expansion in India.
For investors seeking short-term listing gains, applying to the Delta Autocorp IPO could be an attractive option. However, investors should carefully evaluate the company’s long-term prospects, especially in a competitive and evolving industry.
The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.