Delta Autocorp is a leader in climate tech innovation, focusing on electric vehicles (EV) that are designed to conquer the rugged terrains of India. With a strong focus on manufacturing perfection and 7 years of market research, Delta Autocorp is revolutionizing EV mobility across the country. The company’s EVs have made a significant impact across 24 Indian states, winning hearts for their impeccable build and design.

IPO Details

Delta Autocorp’s Book Built Issue is valued at ₹54.60 Crores, consisting of a Fresh Issue of 38.88 Lakh shares worth ₹50.54 Crores and an Offer for Sale (OFS) of 3.12 Lakh shares totaling ₹4.05 Crores. The subscription period opens on January 07, 2025, and closes on January 09, 2025. The allotment is expected to be finalized on January 10, 2025, with a tentative listing date on January 14, 2025 on the NSE SME platform.

The price band for the IPO is set between ₹123 and ₹130 per equity share, with a market capitalization of ₹198.76 Crores at the upper price band. The lot size is 1,000 shares, meaning retail investors are required to invest a minimum of ₹1,30,000. For High-net-worth individuals (HNIs), the minimum investment is 2 lots (2,000 shares), totaling ₹2,60,000.

Subscription and Grey Market Premium

As of January 07, 2025, the Grey Market Premium (GMP) for Delta Autocorp is ₹40, indicating a potential listing gain of 30.77%. The GMP reflects market sentiment and demand but should be considered cautiously as it does not guarantee the actual market price after listing.

Financial Performance and Key Metrics

For the period ending October 31, 2024, the company reported revenues of ₹4,527.53 Lakh, showing steady growth over the years. The EBITDA for the same period was ₹675.49 Lakh, reflecting strong operational performance. The Profit after Tax (PAT) was ₹480.81 Lakh, signaling healthy profitability.

Key financial metrics for the company include:

• Pre-issue EPS: ₹9.51
• Post-issue EPS: ₹4.55
• Pre-issue P/E ratio: 13.67x
• Post-issue P/E ratio: 28.57x, compared to the industry P/E ratio of 73x
• ROCE (Return on Capital Employed): 40.32% for FY24
• ROE (Return on Equity): 45.89% for FY24

The company’s high ROE and ROCE indicate efficient use of capital, making the IPO attractive for investors.

Should You Apply for Delta Autocorp IPO?

Given the positive financial performance and strong market demand, the Grey Market Premium of ₹40 signals potential listing gains. While the IPO is fairly priced with a P/E ratio of 28.57x, which is lower than the industry average, it remains a risky investment. For risk-tolerant investors, the Delta Autocorp IPO could provide a short-term gain post-listing.

We recommend applying for the IPO if you are looking for listing gains, but keep in mind the inherent risks.

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

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

For more updates on executive appointments and other business developments, we encourage readers to explore related news and articles, including the latest on IPOs, share market updates, and financial strategies at:
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