EMMFORCE AUTOTECH LTD (BSE SME)

Apr 23, 2024 - Apr 25, 2024

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ANCHOR DETAILS

Name of Anchor	No. of Shares	% Portion	Amount (cr)
BOFA Securities Europe SA - ODI	307200	19.62%	3.01
Astorne Capital VCC ARVEN	231600	14.79%	2.26
NAV Capital VCC - NAV Capital Emerging Star Fund	205200	13.10%	2.01
NEGEN Undiscovered Value Fund	205200	13.10%	2.01
Persistent Growth Fund — Varsu India Growth Story Scheme 1	153600	9.81%	1.50
Craft Emerging Market Fund PCC — Citadel Capital Fund	153600	9.81%	1.50
Moneywise Financial Services Private Limited	103200	6.59%	1.01
LC Radiance Fund VCC	103200	6.59%	1.01
Galaxy Noble Global Opportunities Fund PCC— GNGOF 1	103200	6.59%	1.01
TOTAL	1566000	100.00%	15.32

IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	33.25	1828800
NII (HNI)	14.25	783600
QIB	19.01	1045200
Anchor	28.47	1566000
Market Maker	5.02	276000
Total	100	5499600

Emmforce Autotech Limited, established in 2012, stands as a premier manufacturer and exporter of drivetrain components catering to niche vehicle markets. With a comprehensive product lineup encompassing a spectrum of differential parts, gear shifters, axles, and more, the company has carved a niche for itself in serving the needs of 4WD and high-performance racing vehicles. Bolstered by its commitment to engineering excellence, Emmforce Autotech boasts an in-house research, design, and development capability, coupled with an extensive understanding of materials and manufacturing processes. This prowess, complemented by stringent quality assurance measures, ensures the delivery of top-notch products consistently. Additionally, the company's customer-centric approach, underpinned by two decades of fostering strong client relationships, secures regular orders, further reinforcing its market presence. Backed by a seasoned management team and a scalable business model, Emmforce Autotech continues to thrive as a reliable one-stop solution provider in the realm of drivetrain parts, situated in its manufacturing facility in Baddi, Himachal Pradesh. As of October 31, 2023, the company employed 128 dedicated professionals who contribute to its ongoing success and operational excellence.

Emmforce Autotech IPO Details

Issue Size	5499600 Equity Shares  aggregating to ₹53.90 cr
Fresh Issue	5499600 Equity Shares  aggregating to ₹53.90 cr
Issue Type	Book Built Issue IPO
Listing At	BSE SME
Share holding pre issue	1,50,00,000 Equity Shares
Share holding post issue	2,04,99,600 Equity Shares
Market Maker portion	2,76,000 Equity Shares Spread X Securities

Key Performance Indicators

KPI	Mar-23	Mar-22
ROE	19.62%	40.10%
ROCE	34.34%	56.61%
D/E	0.65	0.78
RONW	18.71%	34.41%
EPS	2.93	4.88
P/BV	9.52
P/E Pre IPO	33.5

Financial Information (Restated)

Period	Oct-23	Mar-23	Mar-22	Mar-21
Assets	11,237.91	4,895.40	5,257.36	3384.41
Revenue	4790.31	4,875.32	7,138.13	5185.32
Profit	511.77	438.85	732.58	508.91
Net worth	3944.80	2,344.95	2,129.09	1,524.82
Reserves	43.72
Borrowings	4011.54	1,535.43	1,651.09	501.7
Amount in lakhs

Strength Factors

One-Stop Solution for Drivetrain Parts: Emmforce Autotech Limited stands out as a comprehensive provider of drivetrain parts, offering a wide range of products including Differential Housings, Lockers, Covers, 4WD Locking Hubs, and more. This one-stop solution approach simplifies procurement for customers and enhances operational efficiency.

Scalable Business Model: With a strong foundation and a focus on manufacturing niche automotive parts, Emmforce Autotech has demonstrated scalability in its operations. This ability to scale efficiently positions the company to capture emerging market opportunities and adapt to changing industry dynamics.

Experienced Management Team: Led by Mr. Ashok Mehta, who brings over three decades of industry experience and expertise, Emmforce Autotech boasts an experienced and capable management team. Their strategic vision, market insights, and leadership skills have been instrumental in driving the company's growth, expanding its operations, and establishing a significant presence both domestically and globally.

Risk Factors

Quality Compliance Risk: The Company is subject to stringent quality requirements, and any failure to meet these standards could lead to order cancellations. This risk could have adverse effects on the company's reputation, financial stability, cash flows, and overall operational performance.

Dependency on Automobile Sector: Emmforce Autotech's business heavily relies on the performance of the Automobile Sector, including passenger vehicles, commercial vehicles, and engines. Any downturn or instability in this sector could directly impact the company's revenues, profitability, and growth prospects.

Historical Negative Cash Flows: The company has experienced negative cash flows in the past, indicating potential challenges in managing liquidity and financial resources. Continued negative cash flows in the future could further strain the company's financial health, affecting its business operations, results, and future prospects.

BEELINE CAPITAL ADVISORS PRIVATE LIMITED

Email: mb@beelinemb.com

Tel. No.: +91-79-48407357

CLICK HERE FOR FULL ANCHOR REPORT

LINK INTIME INDIA PRIVATE LIMITED

Email: emmforce.ipo@linkintime.co.in

Tel. No.: +91 810 811 4949