Emmforce Autotech lists at 90% premium, doubles investor wealth on market debut

Shares of Emmforce Autotech delivered bumper returns to investors on its listing on Tuesday, April 30 and doubled investors wealth on its debut. The stock was listed at a premium of 90 per cent over the issue price of Rs 98 apeice at 186.20 on BSE and hit an upper circuit of 5 per cent to Rs 195.51 to post listing, taking the overall gains to 99.50 per cent.

Retail investors, who could apply for a single lot only, consisting of 1,200 equity shares, made a total return of Rs 1.17 lakh on each lot. Other investors need to apply for a minimum of two lots, or 2,400 equity shares, to make a profit of Rs 2.34 lakh at the opening tick.

However, the listing of Emmforce Autotech has been on the less-than-expected note. Ahead of listing, shares of Emmforce Autotech were commanding a grey market premium (GMP) of Rs 130 apiece, suggesting a listing pop of 135 per cent to the investors. The GMP for the counter has remained stable.

The IPO of Emmforce Autotech was open for bidding between April 23-25, raising a total of Rs 53.90 crore. The company sold a total of 54,99,600 equity shares in lots 1,200 equity shares for Rs 98 apiece. The SME counter was listed on the BSE only.

Emmforce Autotech, incorporated in 2012, is a manufacturer and exporter of drivetrain parts for niche vehicles. The company's product list includes housings, locks, covers, 4WD locking hubs, spindles, axles and shafts, gear shifters, yokes, differential spools, differential tools, and various forged/cast differential parts mainly for 4WD and high-performance racing vehicles.

Beeline Capital Advisors was the sole book running lead manager of the Emmforce Autotech IPO, while Link Intime India was the registrar for the issue. The market maker for Emmforce Autotech IPO is Spread X Securities.