Delta AutoCorp IPO Good or Bad for investment: Discover Key Things To Know Before Investing!
The Delta autocorp IIPO has captured investors attention, It’s its open for subscription from 7 January to 9th January 2025 at Price band of 123 to 130 per share. as of now gray market premiums are trading at 110 which showing 85% listing gains. Good grey market premium suggests high market interest signaling potential for listing gains. it is an emerging player in India’s electric vehicle market. Delta autocorp stands out for its affordable electric 2 Wheelers and 3 Wheelers targetting primarily 2 tire and 3 tire cities. However determining whether this IPO is good investment, involves evaluating key factors such as the company financial market position growth potential competitive landscape and valuation compared to pairs This article gives you information about consideratins to help you to decide Delta AutoCorp IPO Good or Bad.
Table of Contents
About Delta AutoCorp
Delta atoper limited Founded in 2016, Has rapidly positioned itself as a key player in electric vehicle space in India. The company focuses on producing equipment electric two Wheeler and three Wheelers under its “Deltic” Brand. these vehicles aim to revolutionise urban mobility and all designed to address the growing demand for sustainable transportation in the country
Products and services
Delta AutoCorp offers Diverse portfolio of electrical vehicles.
- Electric scooters: These scooters are crafted for daily urban commuting operating cleaner and more efficient alternative to traditional fuel powered vehicles.
- Electric rickshaws : designed for the shared mobility sector these E rig shows serve as an affordable sustainable option for last mile connectivity and short distance Travel.
- Electric loaders : catering to industries that require efficient cargo transportation these looters provide an equipment solution for Good moment.
Official Website – https://www.deltic.co/
Delta AutoCorp IPO Grey Market Premium
The the grey market premium for Delta to core IPO has attracted significant attention strong investor interest as of 7th January Grey market premium is approximately around 110 per share which is trading at a premium in the unofficial market.
With GMP of 110 and an issue price of 130 The expected listing price will be around 244 share indicating a potential to main offer approximately around 84.6 this substantial premium reflects strong demand and positive sentiment towards delta autocorp business prospect In electric vehicles sector. while high GMP can encouraging It is essential to approach it with cautious. Grey Market premium is Continuously changing aspect, you have to look closer & track gmp continuously before investing. the current grey market premium cannot guarantee that similar performance post listing or at the time of listing day.
Delta AutoCorp IPO Objective
Delta AutoCorp Limited aims to utilize the ip process for key growth initiatives The funds will be used to set up new electric thriller manufacturing facility, Develop innovative ev models, strengthen working capital additionally a portion will cover General Corporate needs and IPO related expenses. III These steps are designed to enhance production support market expansion and solidify the company’s position in the growing electric vehicle industry.
Delta AutoCorp IPO Details
| Details | Information |
|---|---|
| IPO Open Date | January 7, 2025 |
| IPO Close Date | January 9, 2025 |
| Face Value | ₹10 Per Equity Share |
| IPO Price Band | ₹123 to ₹130 Per Share |
| Issue Size | Approx ₹54.60 Crores |
| Fresh Issue | Approx ₹50.54 Crores |
| Offer for Sale | Approx 3,12,000 Equity Shares |
| Issue Type | Book Built Issue |
| IPO Listing | NSE SME |
| Retail Quota | Not more than 35% |
| QIB Quota | Not more than 50% |
| NII Quota | Not more than 15% |
Delta Autocorp IPO Financial Results
| Fiscal Year | Revenue (₹ in Crore) | Net Profit (₹ in Crore) |
|---|---|---|
| FY 2021 | 16.67 | 0.42 |
| FY 2022 | 57.13 | 4.20 |
| FY 2023 | 80.02 | 5.13 |
Revenue growth: The last three physical years the company has shown a significant increase in revenue growing from 16th .67 pro in fy 2021 280.02 crores in Fy 2023 This sharp growth highlights the company’s ability to scale its operations and tap into market demand effectively
Profitability trends: Net profit has also risen consistently from 0.42 crore in FY to zero to 125 .13 crore in France 2023 This indicates improved cost management and operational efficiency resulting in better margins.
Margin improvement: The consistent growth in both revenues and net profit suggests that the company’s maintaining its positive profit margin however it is in session for investor to analyze whether this growth is sustainable in long run or not.
The company’s financial performance reflects its ability to generate higher revenue while maintaining profitability positioning it as a growing player in its sector however Potentially investors should review additional factors like depth levels and cash flow for a conpherensive evaluation of company.
Peer Comparison
| Company | Revenue (FY 2023) | Net Profit (FY 2023) | Market Share in EV Segment | Primary EV Products |
|---|---|---|---|---|
| Delta Autocorp Ltd. | ₹80.02 crore | ₹5.13 crore | Emerging Player | Electric 2W & 3W (Deltic brand) |
| Tata Motors | ₹3,45,000 crore | ₹2,000 crore | 72% (EV Market) | Electric Cars (Nexon EV, Tigor EV) |
| Mahindra & Mahindra | ₹1,21,000 crore | ₹7,500 crore | 9% (EV Market) | Electric SUVs (e-Verito, XUV400) |
| Ola Electric | Not Publicly Disclosed | Not Publicly Disclosed | Leading in Electric 2W | Electric Scooters (S1 Series) |
The peer comparison highlights Delta at the corp as an emerging player in the electric Vehicle market, focusing on Affordable electrical two Wheelers and three Wheelers while established rejoins like Tata Motors and Mahindra Dominate the four Wheeler EV segment with larger revenues and market shares.
Company promoters
Delta to Corp limited is lead by a strong team of experienced promoters who have played a vital role in the company’s growth and success in the electric vehicle market.
Key promoters:
Ankit Agarwal: The managing director with over 14 years of experience has been instrumental in shaping the companies vision and expanding its EV portfolio.
Priyanka Agarwal: Actively involved in strategic decision making supporting the company mission for sustainable mobility
Potential risk
Investing in Delta Auto Corp ipo comes with certain risk that potential investor should keep in mind.
intense market competition: the electric vehicle industry is highly competitive with several established players and new entrants fighting for markets Share. performance
dependence on government policies: The EV sector heavy relies on government support such as subsidize and incentivize any reduction or withdrawal of these benefits core significantly impact the companies growth and profitability.
Financial leverage: the company has a moderate debt to equity ratio of 0.49 while manageable this level of depth requires careful handling to avoid financial stress in the future.
SME IPO concentration: As a small to medium enterprise ipo delta Atocorp says might experience lower trading values and higher price volatility which could make buying and selling shares more challenging.
Delta AutoCorp IPO Good or Bad
Delta Corp is emerging company electrical sector electrical vehicle sector as of now good gmp gray market premium for this ipo its is about 85% listing gains showing. As per listing gains this ipo is good for short term investor & those who are looking for listing gains, This will be a good opportunity If you get allotments.
Considering financial of company, steady revenue growth is showing positive signals about company revenue is grow from 16,00,00,000 to 80 crores Till 2023, Net profit grow from 0.8 to 5 .13 crores. This is showing companies financial health at positive side.
However, pay market premium prices are subject to change over the time So it is required to track gray market premiums on regular basis till listing day. as per gmp this ip is good for short term investors, for long term investors it will be a early entry in the New emerging company which is in ev sector backed by Govt’s regulations.
Disclaimer: Information shared here is only for educational purpose only and do not intending to advise to invest in this ipo. please consult with your advisor before investing.
Pravin Bhosale
Since stepping into the world of trading in 2019, i have gained valuable experience navigating the markets, have knowldge in indices like Bank Nifty, Nifty IT, Sensex, Bankex, and Finifty. Also have sound knowldge about IPO industry & ipo process. our blog aims to make finance approachable, offering practical insights for readers to better understand and act on market trends.