Delta Autocorp Limited, operating under the brand name “Deltic,” is set to launch its Initial Public Offering Delta Autocorp IPO on January 7, 2025.
IPO Details:
- Issue Type: Book Building – SME
- Issue Size: ₹54.60 crore
- Price Band: ₹123 to ₹130 per equity share of face value ₹10 each
- Lot Size: 1,000 shares
- Minimum Investment: ₹1,23,000
- Listing Exchange: NSE – SME
- Open Date: January 7, 2025
- Close Date: January 9, 2025
- Listing Date: January 14, 2025
Company Overview:
Established in 2016, Delta Autocorp manufactures and sells electric two-wheelers (E2Ws) and three-wheelers (E3Ws) under the “Deltic” brand. The company sources components from reputed Original Equipment Manufacturers (OEMs) and has a network of over 300 dealers across 25 states and Union Territories in India. Their product lineup includes models like Deltic Drixx, Trento, ZGS, and Legion for E2Ws, and Deltic Star, Vayu, Vista, and Garbo for E3Ws.
Financial Highlights:
- Revenue: ₹80.36 crore
- Profit After Tax (PAT): ₹8.51 crore
Objectives of the Issue:
- Setting up an electric three-wheeler fabrication and painting plant
- Investment in new product development
- Funding working capital requirements
- General corporate purposes
Delta Autocorp IPO Strengths:
- Experienced promoters with over 14 years in the industry
- Strong professional management team
- Customer-centric approach with tailored product designs
- In-house R&D for innovation
- Extensive dealer network across 25 states and territories
- Focus on underserved tier-2 and tier-3 markets
- Premium electric scooters with functional and affordable features
- ISO-certified manufacturing and rigorous quality control standards
- Diversified product portfolio spanning two- and three-wheelers
Delta Autocorp IPO Risks:
- Potential defects in vehicles may harm reputation and require recalls
- Dependence on supplier networks could disrupt production and delivery
- New EV model development involves significant capital and cost risks
- Failure to meet customer expectations may harm brand perception
- Increased competition could impact market share and business growth
- Regulatory changes could affect operations and financial performance
- Inability to attract qualified personnel may hinder business expansion
- Natural disasters or economic instability may disrupt supply chains
Application Process:
Investors can apply for the Delta Autocorp IPO through online platforms using UPI or ASBA as payment methods. ASBA applications can be made via net banking, while UPI applications are available through brokers.
GMP (Grey Market Premium):
As of the latest reports, the Grey Market Premium for Delta Autocorp’s IPO has risen by 35%, indicating positive investor sentiment.
Important Dates:
- Allotment Finalization: January 10, 2025
- Refund Initiation: January 13, 2025
- Share Credit: January 13, 2025
- Listing Date: January 14, 2025
Financial Metrics
- Price-to-Earnings (P/E) Ratio: Based on the price band of ₹123-₹130 and PAT of ₹8.51 crore, the IPO appears to be fairly priced for an SME.
- Return on Net Worth (RoNW): Delta’s RoNW is promising, showcasing its profitability relative to shareholder equity.
Investor Sentiment
- Short-Term View: The strong GMP and demand in the SME segment could make this IPO attractive for listing gains.
- Long-Term View: Investors should evaluate Delta’s ability to scale operations, maintain product quality, and compete effectively in a dynamic market.
Should You Subscribe?
Who Should Consider?
- Risk-tolerant investors seeking exposure to India’s growing EV market.
- Those looking for potential listing gains, given the high GMP.
Delta Autocorp IPO Price
The price band for the Delta Autocorp IPO has been set at ₹123 to ₹130 per equity share, with a face value of ₹10 per share.
Additional Pricing Details:
- Lot Size: Minimum of 1,000 shares, requiring an investment of ₹1,23,000 to ₹1,30,000 depending on the final issue price.
- Issue Size: Total size of ₹54.60 crore.
Delta Autocorp IPO Gmp
As of the latest updates, the Grey Market Premium (GMP) for the Delta Autocorp IPO is reported to be around ₹35 per share.
Key Insights:
- GMP Trend: The premium indicates strong investor interest, with the IPO price band set at ₹123-₹130 per share. A ₹35 GMP suggests an estimated listing price of ₹165, implying a potential 27% to 28% upside.
- Investor Sentiment: A positive GMP reflects optimism about Delta Autocorp’s growth prospects and the EV sector’s future in India.
Delta Autocorp IPO Returns
Here’s a table summarizing the potential returns for the Delta Autocorp IPO based on the issue price band and current Grey Market Premium (GMP):
| Particulars | Details |
| Return on Investment (ROI) | ~28% |
| Issue Price (Lower Band) | ₹123 per share |
| Issue Price (Upper Band) | ₹130 per share |
| GMP | ₹35 per share |
| Expected Listing Price (Lower Band) | ₹158 per share (₹123 + ₹35) |
| Expected Listing Price (Upper Band) | ₹165 per share (₹130 + ₹35) |
| Lot Size | 1,000 shares |
| Investment Required (Lower Band) | ₹1,23,000 (₹123 x 1,000) |
| Investment Required (Upper Band) | ₹1,30,000 (₹130 x 1,000) |
| Profit on Listing (Lower Band) | ₹35,000 (₹35 x 1,000) |
| Profit on Listing (Upper Band) | ₹35,000 (₹35 x 1,000) |
Explanation:
- Investment: Based on the lot size of 1,000 shares, the total investment required is ₹1,23,000 at the lower band and ₹1,30,000 at the upper band.
- Profit Estimate: If the listing price includes the current GMP of ₹35, investors may expect a profit of ₹35,000 per lot.
- ROI: The return on investment is approximately 27-28%, depending on the final issue price.
Delta Autocorp IPO Growth
To analyze the growth potential of Delta Autocorp IPO, here’s a table summarizing key financial and business metrics over the years:
Delta Autocorp Growth Metrics
| Parameter | FY 2021 | FY 2022 | FY 2023 | Growth Rate (%) |
| Revenue (₹ Crore) | ₹49.12 | ₹64.35 | ₹80.36 | 63.6% (CAGR) |
| Profit After Tax (₹ Crore) | ₹4.21 | ₹6.57 | ₹8.51 | 44.6% (CAGR) |
| EBITDA Margin (%) | 12.4% | 13.2% | 14.1% | Improving |
| Dealer Network | ~200 | ~250 | ~300 | 50% Expansion |
| Product Portfolio (Models) | 5 Models | 7 Models | 10 Models | 100% Growth |
| States Covered | 18 | 21 | 25 | 39% Growth |
Future Growth Potential
- EV Market Opportunity: With India’s EV market expected to grow at a CAGR of 49% (2021-2030), Delta is positioned to capitalize on the rising demand.
- Focus on Tier-2 and Tier-3 Markets: These markets are less competitive and provide significant growth potential for affordable EVs.
- Government Support: Favorable policies and subsidies for EV adoption can further boost growth.
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