Delta Autocorp IPO: GMP, Date, Price & Details

Delta Autocorp IPO-Complete Overview

Delta Autocorp IPO under the SME IPO category is a book-built issue of Rs.54.60 Cr (42,00,000 lac Shares) by Delta Autocorp Limited established in 2016. The company manufactures and sells 2-wheeler and 3-wheeler EVs.

The brand name under which the company operates is known as Deltic. Largely engaged in electric 3-wheeler prototypes, the company made its first step by launching an E-Rickshaw in 2017 with a mileage of more than 150 Km.

The product portfolio was expanded to include electric 2Ws after market analysis and consumer needs changed. Prototype development began in 2018, and in 2019, the company launched affordable, durable scooters for tier-2 and tier-3 towns.

The company runs on a network of more than 300 dealers in 25 states and Union Territories focusing on B2B transactions. To be a global brand with cost-efficient, reasonable products and service excellence.

Their Products:

1. Electric 2W Scooters: Deltic Drixx, Deltic Trento.

2. Electric 3W rickshaws: Deltic Star, Deltic Vayu.

3. Electric 3W loaders.

4. Electric 3W garbage carts.

5. Spare parts and accessories for 3W and 2W vehicles: 3W Motor and 3W Controller.

The company works entirely to innovate its products in-house with its R&D cell in Uttar Pradesh, which has 11 staff working solely on designing electric vehicles as per consumers' needs and preferences.

Delta IPO Overview

This Delta Autocorp IPO date is 07 January, and its ‘initial public offering’ will end on 09 January 2025. 

The Rs.54.60 crore new SME IPO comprises a combination of a fresh issue of 38.88 lac Shares (Rs.50.54 Cr) and an offer for sale (OFS) of 3.12 lac Shares (Rs.4.06 Cr).

This upcoming IPO date is on 07 January 2025. The Delta Autocorp IPO Price is Rs.123 to Rs.130 for each Share. 

The expected IPO listing date is Tuesday, 14 January 2025, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Lac)

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

Sales-wise Revenue Breakdown  

(Amount in lac)

State-wise Revenue Breakdown (Top States)

(Source: RHP)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Finance for the establishment of an electric.

• Three-wheeler painting and fabrication plant.

• Investing in the development of new products.

• Financing the need for operating capital.

• To cover the offer's costs.

• General corporate purposes.

Peers of Delta Autocorp IPO Ltd.

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Delta IPO share price is Rs.123 to Rs.130 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.11.79 from the last year, the resulting P/E ratio is 11.02x.

Considering the weighted EPS of Rs.8.69 for the last three years, the P/E ratio is 14.96x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 72.80.

IPO's Strengths

• Well-versed promoters and management team. 

• Have a customer-centric approach.

• Household research and development of products.

• Crack distribution model.

• Tap the mass premium.

• Quality standard certifications & quality tests.

• A diverse range of products.
  
  

IPO’s Weaknesses

• Small-Scale Product Defects and Performance: In case there are some drawbacks related to the electric vehicles, or if they are not on par with industry standards, it becomes detrimental to the brand itself. Such a thing would have its consequences in terms of recalls, lawsuits, or just losses in finances.

• Dependence on Key Personnel: The company grows at a fast pace, and operational success is heavily dependent on the management and on a few employees. Losing these key players or being unable to attract equally qualified personnel would greatly hamper the operations.

• Regulatory Changes: In India, the company is subject to the following changes in laws, rules, and regulations. These often need their own approvals and compliance costs.

• Economic and Market Conditions: Global economic instability, consumer behavioural changes, or supply chain disruptions may affect operations and profitability unfavourably.

• Natural Calamities: Things like earthquakes, floods, or other natural disasters can happen, and causing a state of business disruption can take a toll on the financial health of the company. 

Delta Autocorp IPO GMP

Delta Autocorp IPO GMP today is Rs.55 as of 03 January 2025. With the price of Rs.130, the estimated Delta Autocorp IPO listing price is Rs.185 while writing this information.

IPO Timetable (Tentative)

The IPO opening date is January 07, with allotment on January 10, refund initiation on January 13, and listing on January 14, 2025.

Delta Autocorp IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 42,00,000 Shares (Rs.54.60 Cr).

Delta Autocorp Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.130000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.260000.

IPO Reservation (% of Net Issue)

Promoters And Management of Delta Autocorp Ltd.

• Mr. Ankit Agarwal

• Mrs. Priyanka Agarwal

• Mr. Sanwarmall Agarwalla.
  
  

IPO Lead Managers

GYR Capital Advisors Private Limited.

Dividend Policy

No dividends have been paid by the company in any FY.

Conclusion

Delta Autocorp IPO will be soon available for the public, as the company has become increasingly engaged in production in the last few years while opening up attractive opportunities to invest in a growing EV manufacturer, even with diverse product offerings and an extended dealer network. 

The potential for growth is underpinned by proprietary R&D and a strong customer focus; however, risk factors such as dependence on key personnel and market conditions lend themselves to being considered by investors.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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