The Initial Public Offering (IPO) of Delta Autocorp, a top manufacturer of automotive parts, opened for subscription on Tuesday, January 7, 2025, and has already gained significant attention from investors. The company plans to generate ₹54.60 crore through its IPO, which includes a fresh issue of ₹50.54 crore and an offer for sale (OFS) worth ₹4.06 crore.
Key Details of the IPO:
- IPO Dates: Opened on January 7 and closes on January 9.
- Price Band: Fixed at ₹123-₹130 per share.
- Lot Size: Investors need to buy a minimum of 1,000 shares, requiring a starting investment of ₹1,30,000.
- Shares Offered: A total of 27.36 lakh shares are available for subscription.
- Retail Investors: 13.68 lakh shares.
- Non-Institutional Investors (NII): 5.87 lakh shares.
- Qualified Institutional Buyers (QIBs): 7.81 lakh shares.
Subscription Update:
By noon on Day 1, the IPO received 3.46 times the total shares on offer, with bids for 94.63 lakh shares against the available 27.36 lakh shares.
- The Retail Investor segment saw high enthusiasm, with subscriptions reaching 6.3 times the shares allocated.
- Similarly, the NII category also recorded a subscription rate of 6.3 times.
- The QIB category has not yet received any bids.
As of Day 1, the Grey Market Premium (GMP) for Delta Autocorp’s IPO is ₹110, indicating strong potential for a higher listing price. Based on the upper price band of ₹130, the expected listing price in the market could be ₹210, giving a premium of ₹80 per share.
Allotment and Listing Details:
- Allotment Date: Investors will be informed of the allotment status by Friday, January 10, 2025.
- Refunds and Shares in Demat Accounts: Refunds will be processed, and shares will reflect in investors’ accounts by Monday, January 13, 2025.
- Listing Date: The company’s shares are set to be listed on the NSE SME platform on Tuesday, January 14, 2025.
Delta Autocorp is a well-known company specializing in automotive components for two-wheelers and three-wheelers. Its focus on growth and innovation, particularly in the electric vehicle (EV) segment, has made it attractive to investors. Additionally, government policies supporting EV adoption in India further strengthen the company’s future prospects.
The Delta Autocorp IPO is off to a great start, with a strong subscription response on the opening day. With its promising growth plans and focus on electric vehicles, the company offers a compelling investment opportunity. Investors should assess the potential risks thoroughly before making any decisions.
