Emmforce Autotech, an automotive components manufacturer, has filed draft papers for an IPO to raise funds. The IPO will be used to expand its subsidiary, Emmforce Mobility Solutions Pvt Ltd.
New Delhi, Dec 28 (PTI) Automotive components manufacturer Emmforce Autotech has filed draft papers to raise funds through an initial public offering (IPO).
The public issue will be entirely a fresh issue of up to 55,00,000 equity shares, each with a face value of Rs 10, the company said in a statement on Thursday.
Post the completion of the IPO, the company's shares are proposed to be listed on the SME Platform of BSE Ltd, a platform for small and medium enterprises, it added.
The company proposes to utilise the proceeds from the fresh issue towards investment in its subsidiary, Emmforce Mobility Solutions Pvt Ltd (EMSPL).
Proceeds will also be used to meet the working capital requirements of the company, and general corporate purposes, as per the draft red herring prospectus (DRHP).
"We are planning to invest proceeds from the IPO in our subsidiary company EMSPL to expand its manufacturing capabilities and cater to untapped territories, including Europe, South America, Africa, the Middle East, Asia Pacific and India," Ashok Mehta, Chairman and Managing Director of Emmforce Autotech Ltd, said.
The firm, promoted by Mehta, recorded a revenue of Rs 48.75 crore and a profit of Rs 4.38 crore in FY23.
Beeline Capital Advisors Pvt Ltd is the sole book-running lead manager, and Link Intime India Pvt Ltd is the registrar to the issue.
The Panchuka-based company manufactures niche automotive drivetrain parts like differential housings, spindles, axles and shafts, and gear shifters etc.
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