Emmforce Autotech's Rs 54-crore IPO to open on April 23; price band Rs 93-98 per share

New Delhi: Auto components maker Emmforce Autotech Limited on Friday said it will raise Rs 54 crore through an initial public offering (IPO) for which the subscription will start on April 23.

The company plans to use the money for expansion, especially setting up a new manufacturing unit at Baddi in Himachal Pradesh. Panchkula-headquartered Emmforce Autotech manufactures niche automotive drivetrain parts.

Addressing a media briefing Chairman and Managing Director of Emmforce Autotech Ashok Mehta said around 98 per cent of the components are exported, primarily to North America and Asia.

According to the RHP (Red Herring Prospectus) document submitted by the company with the market regulator Securities and Exchange Board of India (SEBI), the company propose to utilise the net proceeds from the IPO to “invest in its subsidiary company - Emmforce Mobility Solutions Private Limited (EMSPL) for setting up a new plant at Jharmajri, Baddi in Himachal Pradesh; meet the company’s working capital requirement; and for general corporate purpose.” EMSPL manufactures Rotavator Blades and Steel Forgings for the automotive and engineering industry.

The IPO will comprise a fresh issue of 54,99,600 equity shares with a face value of Rs 10/- through the book-building route. As many as 2.76 lakh equity shares have been reserved for the Market Maker, 7.83 lakh equity shares for non-institutional investors (NIIs), 26.11 lakh equity shares allocated for qualified institutional buyers (including anchor reservation), and retail individual investor (RII) portion accounts for 18.28 lakh equity shares.

The anchor portion will open on April 22, and the issue will conclude on April 25. The company intends to raise approximately Rs 53.9 crore (at upper price band) from the offering and aims to be listed on BSE SME platform.

The price band for the issue has been fixed at Rs 93 to 98 per share, and the lot size will be 1,200 equity shares.