Date: January 02, 2024. — Emmforce Autotech Limited has filed its Draft Red Herring Prospectus (DRHP) with the BSE SME, a platform for small and medium enterprises. The company plans to raise funds through an Initial Public Offering (IPO). The IPO will consist of 55 lakh equity shares, each with a face value of Rs 10.
The company, situated in Panchkula, Haryana, has a strong global presence. It exports the majority of its products to six continents, primarily North America and Asia. Differential Housings, Differential Lockers, Differential Covers, 4WD Locking Hubs, Spindles, Axles and Shafts, Gear Shifters, Yokes, Differential Spools, Differential Tools, and numerous differential forged/cast parts are among the company’s product offerings. These items are generally utilized in four-wheel drive and high-performance racing automobiles. Moreover, in Baddi, Himachal Pradesh, the company has a state-of-the-art manufacturing plant across 1,50,000 square feet.
According to the DRHP, the company intends to use the proceeds from the IPO for the following purposes:
- The company plans to invest Rs 10 crore in its subsidiary company, Emmforce Mobility Solutions Private Limited (EMSPL). This investment aims to establish a new manufacturing plant at Jharmajri, Baddi, Himachal Pradesh. EMSPL will manufacture Blades for Rotavators and other agricultural implements, and Steel Forgings for the automotive and engineering industries. Moreover, the commercial production at the new plant is expected to commence in February 2024.
- To meet the working capital requirements and general corporate purposes of Emmforce Autotech Limited, amounting to Rs 27 crore.
Emmforce Autotech Limited’s Chairman and Managing Director, Ashok Mehta, expressed delight at the filing of their DRHP with the BSE SME, considering it a significant milestone in their journey. He is also confident that the upcoming IPO will facilitate business expansion, allowing them to reach new markets and customers. Mehta highlighted their competitive edge in drivetrain parts. He mentioned plans to diversify the product range to include sectors such as Agriculture, Off Highway, EV, Railways, and Defence.
In FY2022-23, the company posted a total revenue of Rs 48.75 crore. The profit after tax (PAT) for the same period was Rs 4.38 crore, marking a decline from the previous fiscal year. In that year, the revenue and PAT stood at Rs 71.38 crore and Rs 7.32 crore, respectively. Moreover, Beeline Capital Advisors, the Book Running Lead Manager, has appointed Link Intime India Private Limited as the Registrar for the IPO. The company intends to list its shares on the SME Platform of BSE Ltd, and it has not yet announced the IPO date and price band.
