Delta Autocorp Limited is set to launch its initial public offering (IPO) from January 7 to January 9, 2025, aiming to raise ₹54.60 crores. The IPO will consist of up to 42,00,000 equity shares, with a face value of ₹10 each. Delta Autocorp specializes in manufacturing electric vehicles and components, positioning itself within the growing electric mobility sector. The proceeds from the IPO will be utilized for setting up an electric three-wheeler fabrication and painting plant, as well as for new product development and working capital needs.
₹100
₹130
₹175.00
Expert Opinions
Market sentiment for the Delta Autocorp IPO is highly favorable, driven by the increasing demand for electric vehicles (EVs) in India. Company strengths include a diverse range of products such as e-scooters and e-rickshaws, along with a robust dealership network of over 350 locations across 24 states, enhancing its market reach.
However, risks and challenges involve potential supply chain disruptions and competition from established players in the EV sector, which could impact growth. The valuation analysis reveals that the company reported an earnings per share (EPS) of ₹9.25 for FY2023, establishing a price-to-earnings (P/E) ratio of approximately 13.30 to 14.05 based on the IPO price range, indicating a reasonable valuation relative to industry standards. From a long-term investment perspective, Delta Autocorp is well-positioned to benefit from government initiatives promoting electric mobility.
Investor Considerations
Company performance and fundamentals indicate a solid foundation, with the company focusing on electric vehicles, particularly electric three-wheelers, which are gaining traction in the Indian market. The sector outlook is promising, as the Indian government promotes electric mobility through various initiatives, aiming to increase EV adoption significantly by 2030. The IPO valuation highlights that the return on net worth (RoNW) for FY2023 is reported at 44.98%, indicating strong profitability and effective management, which enhances investor confidence in the company’s financial stability.
Growth prospects are bolstered by plans to establish a new fabrication plant, which will enhance production efficiency and meet rising demand. However, potential risk factors include competition from established players and supply chain challenges. A long-term investment horizon is advisable as Delta Autocorp aims to capitalize on the evolving electric vehicle landscape while navigating inherent market risks effectively.
| Date | GMP | Trend |
|---|---|---|
| 13 Jan 2025 16.17 | ₹100 | Down |
| 12 Jan 2025 16.31 | ₹117 | --- |
| 11 Jan 2025 12.33 | ₹117 | --- |
| 10 Jan 2025 11.04 | ₹117 | --- |
| 09 Jan 2025 19.20 | ₹117 | Up |
| 08 Jan 2025 10.57 | ₹110 | --- |
| 07 Jan 2025 10.44 | ₹110 | Up |
| 06 Jan 2025 16.45 | ₹80 | Up |
| 05 Jan 2025 10.04 | ₹50 | --- |
| 04 Jan 2025 11.44 | ₹50 | --- |
| 03 Jan 2025 10.59 | ₹50 | Up |
| 02 Jan 2025 10.38 | ₹20 | --- |
| 01 Jan 2025 13.19 | ₹20 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Delta Autocorp’s listing performance. While the GMP of ₹100 predicted a substantial premium of 76.92% over the issue price, the stock delivered a more modest gain of 34.62%. With a significant prediction error of 23.91%, the GMP correctly predicted the positive listing direction but substantially overestimated the magnitude of gains, demonstrating its limitations as a reliable price predictor in this case.
Delta Autocorp IPO Current GMP is ₹100.
Delta Autocorp IPO Expected Returns is 76.92%.
Delta Autocorp IPO estimated listing price is ₹230.