Electro Force India IPO: Details and Analysis

Electro Force India IPO

Investing in IPOs can be exhilarating, and the Electro Force India IPO is stirring up the market with its upcoming debut. You’ve come to the right place if you’re eyeing a fresh investment or curious about the buzz. I’ll dive into the nitty-gritty of why this IPO is grabbing headlines and what it could mean for your portfolio.

Electro Force India’s IPO is scheduled for finalization on December 22, 2023, with shares hitting demat accounts by December 26. But what’s the fuss about? I’ll unpack the potential short-term gains and long-term benefits, comprehensively examining this electrifying opportunity. Stay tuned as we explore the ins and outs of the Electro Force India IPO and what seasoned analysts are saying.

Electro Force India IPO Details

I’ve noticed a surge of interest surrounding Electro Force India’s upcoming IPO, and it’s essential to dissect the details for those considering this investment option. The IPO opens on December 19, 2023, with a closing date set for December 21, 2023. Investors looking to get a slice of the Electro Force India pie should mark their calendars accordingly.

The face value per share stands at ₹10, but the company has set the price at ₹93 per share, a determination that reflects their confidence in the value they’re offering to potential shareholders. With each investor required to purchase a minimum lot size of 1200 shares, the entrance bar is set at an investment of ₹111,600.

The total issue size for the IPO is 8,674,800 shares, which aggregates up to ₹80.68 Cr. This figure is split into a fresh issue and an offer for sale. The fresh issue accounts for 6,000,000 shares and is aimed at raising ₹55.80 Cr to fuel the company’s growth and expansion strategies. The offer for sale consists of 2,674,800 shares of ₹10 each, totaling an aggregate of ₹24.88 Cr. The funds from this portion provide an opportunity for the existing shareholders to realize some of their investment.

Here’s a brief snapshot of the IPO numbers:

Total Issue Size8,674,800 shares
Fresh Issue6,000,000 shares
Offer for Sale2,674,800 shares
Face Value₹10 per share
IPO Price₹93 per share
Minimum Lot Size1200 Shares
Issue TypeFixed Price Issue IPO

Electro Force India has opted to list on the NSE SME, a platform providing a great avenue for small and medium-sized companies to raise equity capital and gain visibility in the market. Pre-issue, the shareholding was at 17,400,001 shares; post-issue, it’ll bump up to 23,400,001 shares, signifying the IPO’s impact on the company’s equity base.

One cannot overlook the role of market makers in the visibility and liquidity of newly listed stocks.

Electro Force India IPO Timeline

Investing in initial public offerings (IPOs) can be a thrilling experience, and with the Electro Force India IPO, the excitement is certainly building. I’ve been keeping a close eye on the timeline, knowing that timing is everything when it comes to such investment opportunities. December 19, 2023, marks the beginning of this journey as the IPO officially opens for subscription.

The availability to invest in this potentially transformative company wraps up on December 21, 2023, giving investors a narrow window to participate. It’s crucial to note the cut-off time for UPI mandate confirmation, which is 5 PM on the closing day.

IPO EventDate
IPO Open DateDecember 19, 2023
IPO Close DateDecember 21, 2023
Basis of AllotmentDecember 22, 2023
Initiation of RefundsDecember 26, 2023
Credit of Shares to DematDecember 26, 2023
Listing DateDecember 27, 2023

The anticipation climbs post-close date as December 22, 2023, is slated for the basis of allotment, determining who gets a slice of the Electro Force India pie. Upon successful allotment, investors will see their shares credited to their Demat accounts by December 26, 2023—a good time to ensure all details in one’s investment profile are accurate and updated.

Finally, the crescendo of events peaks on December 27, 2023, as Electro Force India makes its debut on the NSE SME. This listing date is when the market will welcome a new player, and share prices may potentially experience their first public market fluctuations. Keeping a watchful eye on market conditions during this period can offer insights into the company’s start on the stock exchange and future performance expectations.

The above dates are etched in any investor’s calendar looking to get involved with the Electro Force India IPO. It’s a schedule that guides interested parties through the regimented process of investing in an IPO, underscoring the importance of deadlines and precise timing.

Electro Force India IPO Lot Size

Understanding the lot size for the Electro Force India IPO is crucial for investors aiming to participate. The minimum lot size for retail investors is set at 1,200 shares, translating to an investment of ₹111,600. It’s important to note that this figure represents the market’s base entry level for individual investors.

Investors need to be aware that the minimum application size doesn’t vary for retail participants, whether they’re applying for the minimum or maximum number of lots; both are pegged at 1,200 shares for ₹111,600. High Net Worth Individuals (HNIs), on the other hand, must contend with a higher entry point. The minimum investment for HNIs starts at 2 lots, amounting to 2,400 shares with a collective value of ₹223,200.

The fixed-price issue structure of the IPO dictates these terms, and potential investors must align their investment strategies with the given lot sizes. Subscriptions exceeding the minimum lot size can be made in multiples of 1,200 shares, ensuring scalability for investors with different capacities and investment goals.

Let’s break down the lot size and investment requirement with a quick reference table:

Application CategoryMinimum LotsShares per LotAmount (₹)
Retail Investors11,200111,600
HNI Investors22,400223,200

These figures encapsulate not just the cost of entry but also the scale of participation afforded to different investor classes. With the IPO set for listing on the NSE SME platform, these details gain even more prominence as they could influence investor decisions and the overall subscription rates of the offering.

As an individual looking to invest, it’s essential for me to thoroughly review my financial situation and ensure that any bids I place fall within my investment strategy and limits. While navigating through the allotment process, I’d closely monitor these parameters to secure my share of Electro Force India’s promising market debut.

Electro Force India IPO Promoter Holding

As I delve deeper into the Electro Force India IPO specifics, discussing the promoter holding details that provide valuable insights for potential investors is crucial. Prior to the IPO, the promoter group, consisting of Ayesspea Holdings and Investments Private Limited, Garuda Television Private Limited, and Pravin Kumar Brijendra Kumar Agarwal, held a strong 100% of the company’s shares. This full ownership underscores a deep level of commitment and involvement in the company’s success.

With the IPO advancing, the shareholding post-issue is expected to undergo a significant change. The table below breaks down the anticipated restructure in the shareholding pattern:

Share Holding Pre IssueShare Holding Post Issue

This reduction represents a major shift to 62.93% post-issue, illustrating a broadening of the shareholder base and democratization of company ownership. This serves not only to bring in new investors but also to align the interests of the promoters with the public by maintaining a majority stake, ensuring that their goals remain tightly coupled with the success of Electro Force India.

As the entire offer for sale (OFS) consists of shares sold by the promoter shareholder, Ayesspea Holdings and Investments Private Ltd is leading this divestment. In essence, they’re releasing a total of 2,674,800 shares to the public, which is a strategic move to increase liquidity and welcome public investment into the company’s growth story.

The promoter’s willingness to dilute their stake is a common practice during IPOs, meant to comply with regulatory requirements and to infuse fresh capital for future ventures. Despite this dilution, the promoters’ decision to retain a significant part of their holdings post-IPO signals ongoing support and belief in Electro Force India’s long-term vision. The new shareholding structure will pave the way for more diversified input and potential for broader strategic partnerships.

Furthermore, the fact that the promoters’ post-issue holding remains over 50% reassures that they have enough skin in the game to continue driving the company toward its objectives. This balance suggests a potential for stability and a continuation of the strategic direction that has, to date, supported Electro Force India’s market position.

Electro Force (India) Limited Financial Information

One of the key things I like to scrutinize when evaluating an IPO is the financial health of the company in question. In the case of Electro Force India Limited, the financial trajectory over the past few years is telling. From a modest total asset base of ₹1,719.96 lakhs in March 2021, the company has demonstrated significant growth, amassing assets worth ₹7,827.00 lakhs by the end of September 2023.

Here’s a breakdown of the key financials as they’ve evolved:

Period Ended30 Sep 202331 Mar 202331 Mar 202231 Mar 2021
Profit After Tax711.08799.60864.26-223.69
Net Worth2,546.411,835.331,035.73171.47
Reserves Surplus806.4195.33535.73-328.53

I’ve noted that the company’s revenue performance has remained consistent, as seen by the reported September 30, FY23 figures at ₹2,314.19 lakhs. There’s been a fluctuating trend in profitability, but overall, it remains robust, considering the Profit After Tax for the same period stands at ₹711.08 lakhs.

In regards to shareholder’s equity, Electro Force has done well to bolster its reserves and surplus from a negative ₹328.53 lakhs in March 2021 to a healthy ₹806.41 lakhs by September 2023. This indicates a company that’s not just growing its asset base but is also reinforcing its internal financial resources.

Electro Force India IPO Reservation

When analyzing the structure of Electro Force India’s initial public offering (IPO), it’s important to delve into the reservation details of shares. The total offering of 8,674,800 shares is meticulously divided among various categories of investors, ensuring a well-balanced opportunity for all parties interested.

The company has allocated a significant portion of its shares to the retail segment, recognizing the importance of individual investors in the market ecosystem. Remarkably, 47.49% of the shares, translating to 4,119,600 shares, are earmarked for retail investors, mirroring the allocation for other investment categories. This demonstrates Electro Force India’s dedication to maintaining an equitable investment landscape.

Interestingly, another 47.49% of shares have been allotted to investors other than retail and anchor investors. This helps in achieving a diverse investor base and reflects the company’s strategy to strengthen its market presence. In contrast, market makers reserve a minor segment of 5.02%, which equates to 435,600 shares. It’s worth noting that market makers play a pivotal role in providing liquidity and enabling smoother trading sessions post-listing.

Here’s a breakdown of the Electro Force India IPO reservation:

Investor CategoryShares OfferedPercentage of Total
Other Investors4,119,60047.49%
Market Makers435,6005.02%
Total Shares Offered8,674,800100%

The IPO is strategically priced at $93 per share, with the goal to raise an ambitious $80.68 million. Investors keen on participating will need to note that the minimum order quantity is set at 1,200 shares.

The IPO’s allocation process is designed to cater to an oversubscription scenario, ensuring a proportionate distribution among retail individual investors (RII). This approach highlights Electro Force India’s commitment to fair practices in its IPO execution, with a provision for a lottery system to determine allocation should the availability of shares become a constraint.

About Electro Force India Limited

Stepping into the industrial forefront in 2010, Electro Force India Limited carved a niche in the precision component sector. My research into their offerings reveals a robust portfolio of electrical components, including precision sheet metal components and high-speed stamping components. Renowned for their expertise, they cater to critical sectors in electronics, lighting, and switchgear.

Their production capabilities stem from a state-of-the-art manufacturing facility sprawling across 10,000 square feet. It’s here where their core strength lies: in high-speed sheet stamping and injection molding processes. They’ve seamlessly integrated progressive cold forging and high-frequency welding into their workflow, elevating production efficiency standards.

Electro Force India stands out for its unwavering focus on quality assurance. They’ve consistently delivered on their promises of exceptional quality, and my analysis reflects their punctual delivery of cost-effective solutions. Their services extend beyond mere production to encompass quality testing, packaging, and logistics—all tailored to fulfill unique customer needs.

As they gear up for their IPO, slated from December 19th to December 21st, 2023, Electro Force India is poised to float shares at an accessible price of ₹10 per share— making it an interesting point of discussion for potential investors. With an aspiring IPO size of ₹80.68 crore, split between a fresh issue and an offer for sale, they’re set on a course for expansion and growth.

I’m particularly interested in how these strategic moves might redefine their position in the market and how this could potentially ripple through the industry. Understanding the intricate dynamics of Electro Force India’s business model is essential for anyone considering an investment during their IPO. The anticipation around Electro Force India’s IPO is palpable, with expectations centered on their allocation process designed for a possible oversubscription.

IPO DetailsValue
IPO Size₹80.68 crore
Fresh Issue₹55.8 crore
Offer for Sale₹24.88 crore
Price per Share₹10
IPO DatesDec 19 – Dec 21, 2023

Keeping an eye on this IPO could prove insightful for both industry watchers and investors alike.

Electro Force India IPO Review

Electro Force India’s IPO has hit the market, and I must say, it’s sparked a significant buzz, with investors eagerly analyzing the merits and risks associated with this opportunity. Here’s my take on what you should consider.

Firstly, the positive aspects cannot be overlooked. Competitive valuation is a compelling factor; the IPO is priced with a P/E ratio of 15.30, which noticeably undercuts the industry average P/E of 146.26x. This makes Electro Force India a potentially attractive bet for those looking for value in an overvalued sector. Here’s a quick snapshot of where it stands in comparison to industry standards:

MetricElectro Force IndiaIndustry Average
P/E Ratio (FY24)15.30146.26x
Profit After Tax (2023)₹8 crore

The company’s foothold in the growing power electronics and automation market spells out promising growth prospects, especially for investors scouting for companies with upward trajectories. Moreover, improved financials have been a bright spot, with a reversal from a loss of ₹-2.24 crore in 2021 to a profit of ₹8 crore in 2023, suggesting a turnaround story.

However, where there’s light, shadows lurk. The high competition in Electro Force India’s market segment is a considerable challenge. The power electronics and automation market’s fragmented nature might stonewall their quest for a significant market share.

Furthermore, the IPO is dogged by concerns over volatile financial performance in the past, raising a red flag about future stability and growth. The lack of key financial data in the offer document has also left some inquisitive minds wanting. Critical indicators like PAT, RoE, and RoCE margins have been conspicuous by their absence, making it trickier for investors to paint a complete financial picture.

With the positive and negative aspects in mind, it appears that the Electro Force India IPO mirrors its very sector: full of potential yet subject to fluctuations and unpredictability. However, this IPO might be an electrifying investment for those willing to delve deep into research and due diligence.

Electro Force India IPO Strengths and Weaknesses

Electro Force India’s IPO certainly has its allure with a competitive edge in the burgeoning power electronics and automation industry. Its attractive valuation might tempt many investors looking for growth in a dynamic sector. On the flip side, the challenges it faces in the form of stiff competition and financial inconsistencies can’t be ignored. I believe that while the potential for significant returns exists, it’s crucial to approach this investment with a meticulous eye. Diligence and a deep dive into the company’s finer financial details will be key in making an informed decision. Whether you’re a seasoned investor or just starting out, weighing the strengths against the potential risks will guide you in your journey with Electro Force India’s market debut. Remember, the right investment is not just about the numbers—it’s about understanding the full picture.

You may also like Happy Forgings IPO.

How to Apply for Electro Force India IPO in Zerodha

To apply for the Electro Force India IPO in Zerodha, you can follow these steps:

  1. Log in to your Zerodha account on the Zerodha website or application.
  2. Go to the “Portfolio” section and click on the “IPOs” tab.
  3. Select the Electro Force India IPO from the list of available IPOs.
  4. Enter your bid and submit the application.
  5. Accept the UPI mandate on your phone to block the bid amount in your bank account.

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