Delta Autocorp Limited, a rising player in the 2 and 3-wheeler manufacturing space, is gearing up to make its market debut through an Initial Public Offering (IPO) worth ₹54.60 crores. The offering consists of a fresh issue of 38.88 lakh shares, valued at ₹50.54 crores, and an offer for sale (OFS) of 3.12 lakh shares, amounting to ₹4.06 crores. The subscription window opens on January 7, 2025, and will close on January 9, 2025. Delta Autocorp is poised for its listing on the NSE SME platform on January 14, 2025, offering investors a chance to participate in the growth of this dynamic automaker.
The IPO offers equity shares with a ₹10 face value within a price band of ₹123 to ₹130 per share, with a lot size of 1,000 shares. Retail investors can participate with a minimum investment of ₹130,000 for one lot, while High Net-worth Individuals (HNIs) can subscribe with a minimum of ₹260,000 for two lots. With share allotment notifications scheduled for January 10, 2025, and the listing set for January 14, 2025, this is an exciting opportunity for investors looking to tap into India’s fast-evolving auto sector. Don’t miss the chance to be part of Delta Autocorp’s promising journey in the market.
Delta Autocorp Limited IPO is a fundraise worth ₹54.60 crores comprising a fresh issue as well as an offer for sale with 294,000 shares reserved for the market maker Giriraj Stock Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 7, 2025, to January 9, 2025, providing an opportunity for investors looking to gain a stake in the auto sector.
| Delta Autocorp IPO date | January 7, 2025 - January 9, 2025 |
| Price band | ₹123 to ₹130 per share |
| Face value | ₹10 per share |
| Lot size | 1,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 38,88,000 shares amounting to ₹50.54 crores |
| Offer for Sale | 3,12,000 shares amounting to ₹4.06 crores |
| Total issue size | 42,00,000 shares amounting to ₹54.60 crores |
| Listing at | NSE SME |
| Market maker portion | 294,000 - Giriraj Stock Broking Pvt Ltd |
| Shareholding post-issue | 1,52,89,698 |
| Shareholding pre-issue | 1,14,01,698 |
The Delta Autocorp Limited IPO opens for subscription on January 7, 2025, and closes on January 9, 2025, with allotment scheduled for January 10, 2025.
| IPO open date | January 7, 2025 (Tuesday) |
| IPO close date | January 9, 2025 (Thursday) |
| Basis of allotment | January 10, 2025 (Friday) |
| Initiation of refunds | January 13, 2025 (Monday) |
| Credit of shares to Demat account | January 13, 2025 (Monday) |
| Listing date on BSE / NSE SME | January 14, 2025 (Tuesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on MONTH DATE, 2025 (Thursday) |
Founded in 2016, Delta Autocorp Limited is a manufacturer and seller of electric 2-wheelers and 3-wheelers under the brand name "Deltic." Initially focusing on electric 3-wheelers, the company achieved a key milestone in 2017 with the launch of its first E-Rickshaw, offering a remarkable mileage of over 150 km. By 2019, Delta expanded its product range to include affordable electric scooters designed for tier-2 and tier-3 towns, in response to evolving market demands. Today, the company operates a network of over 300 dealers across 25 states and Union Territories, primarily focusing on B2B transactions with the goal of becoming a globally recognized brand known for cost-effective, practical products and excellent service.
Delta Autocorp's product lineup includes electric 2W scooters (Deltic Drixx, Deltic Trento), electric 3W rickshaws (Deltic Star, Deltic Vayu), electric 3W loaders, and garbage carts, along with spare parts and accessories for both 2W and 3W vehicles. The company emphasizes in-house innovation through its dedicated R&D department in Uttar Pradesh, where 11 employees work on designing electric vehicles tailored to customer needs and preferences. As of October 31, 2024, Delta has a total workforce of 139 employees, driving the company's continued growth in the electric vehicle sector.
The proceeds from the offer will be utilized for setting up an Electric Three-Wheeler Fabrication and Painting Plant, investing in new product development, fulfilling working capital requirements, covering general corporate purposes, and meeting the offer expenses.
The Delta Autocorp Limited IPO’s key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 23.69%, Return on Capital Employed (ROCE) at 19.32% and a Debt-to-Equity ratio of 0.49. The Return on Net-Worth (RoNW) stands at 21.18%, and the PAT Margin was 10.64%. The Price to Book Value was 6.53. The company’s market capitalisation is ₹198.77 crore.
| Period Ended | October 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 4,527.53 | 8,116.73 | 8,055.86 | 5,753.41 |
| Assets | 4,742.31 | 3,461.35 | 2,110.04 | 2,031.61 |
| Net Worth | 2,270.11 | 3,031.91 | 1,141.48 | 688.82 |
| Profit After Tax | 480.81 | 822.00 | 513.41 | 420.34 |
| Reserves & Surplus | 1,129.93 | 1,758.47 | - | - |
| Total Borrowing | 1,120.31 | 1,003.30 | 413.6 | 733.57 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹7.21 while the post-IPO EPS will be ₹5.39. Similarly, the pre-IPO Price to Earnings ratio is 18.03 and will become 24.11 post-IPO.
Delta Autocorp Limited stands out for its experienced promoters and management team, bringing over 14 years of expertise in finance and the electric vehicle (EV) sector. The company follows a customer-centric approach, focusing on understanding consumer needs and offering eco-friendly transport solutions aligned with government initiatives. Its robust product diversification includes electric two-wheelers, three-wheelers, and accessories, catering to a broad market. Delta’s in-house R&D team drives continuous innovation, ensuring its products meet customer demands while maintaining high-quality standards, supported by ISO and BIS certifications.
The company's strategic positioning targets underserved tier-2 and tier-3 markets with affordable yet durable EVs. Furthermore, its scalable operations and strong dealer network across 25 states provide the flexibility to adjust to market demand, offering great growth potential.
Despite its strengths, Delta Autocorp faces several challenges, particularly around product quality. If any defects are found in its EVs, it could damage the company’s reputation, leading to potential recalls, legal costs, and customer dissatisfaction. The company's growth is highly dependent on key personnel and a few suppliers, with top dealers contributing a significant portion of revenue. Losing any of these critical stakeholders could disrupt operations and impact financial stability. Delta also relies on third-party logistics, making it vulnerable to disruptions in its distribution network and supply chain.
Moreover, the fast-evolving nature of the automotive market and increasing competition in the EV sector could pressure pricing strategies, affecting profitability. Lastly, the company is exposed to risks from regulatory changes, economic fluctuations, and natural calamities, which could significantly impact its operations.
Investing early in Delta Autocorp Limited offers a potential opportunity to be part of the company's growth in the evolving auto sector. However, investors should thoroughly evaluate key factors such as the company's operational history, financial stability, sector trends, and growth plans, while also aligning the investment with their own financial goals and risk tolerance. It is advisable to carefully review the offer document and consult with a professional advisor to make an informed decision before participating in this IPO.
What is the Delta Autocorp Limited IPO?
The Delta Autocorp Limited IPO is an NSE SME offering consisting of a fresh issue of 38.88 lakh shares and an offer for sale of 3.12 lakh equity shares with a face value of ₹10, aiming to raise ₹54.60 crore. The price band has been set between ₹123 to ₹130 per share, with a minimum order quantity of 1,000 shares. This IPO will be open for subscription from January 7, 2025, to January 9, 2025. GYR Capital Advisors Private Limited is the book-running lead manager, Link INtime India Private Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the Delta Autocorp IPO open?
The Delta Autocorp Limited IPO will open for subscription on January 7, 2025, and will close on January 9, 2025.
When is the Delta Autocorp IPO listing date?
The tentative listing date for the Delta Autocorp Limited IPO is Tuesday, January 14, 2025.
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