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Delta Autocorp Lists at 35% Premium, Shows Strong Momentum on NSE SME
Last Updated: 14th January 2025 - 12:10 pm
Delta Autocorp Limited, a manufacturer of electric 2-wheelers and 3-wheelers operating under the brand 'Deltic' since 2016, marked its entry into the public markets on Tuesday, January 14, 2025. The company, which has established itself with a diverse portfolio of electric vehicles and operates through a network of over 300 dealers across 25 states, commenced trading on NSE SME amid robust investor enthusiasm.
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Delta Autocorp Listing Details
The company's market debut reflected strong investor confidence in its business model and growth prospects:
- Listing Time & Price: When trading commenced at market open, Delta Autocorp shares debuted at ₹175 on NSE SME, delivering an impressive premium of 34.62% to IPO investors. This strong opening validates the market's recognition of the company's manufacturing capabilities and growth plans.
- Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹123 and ₹130 per share, ultimately fixing the final issue price at ₹130. This pricing approach successfully balanced institutional investor accessibility with fair value for the company's growth potential.
- Price Evolution: By 10:52 AM IST, the stock traded at ₹173.50, representing a gain of 33.46% over the issue price, after touching an intraday high of ₹183.75, demonstrating sustained buying interest throughout the early trading session.
Delta Autocorp First-Day Trading Performance
The trading activity showed robust participation and strong investor conviction:
- Volume and Value: Within the first few hours, 14.70 lakh shares changed hands, generating a substantial turnover of ₹25.91 crore. Notably, 100% of traded shares were marked for delivery, indicating pure investment interest rather than speculative trading.
- Demand Dynamics: The stock's trading pattern showed continued strength with buy orders for 85,000 shares against sell orders for 2,00,000 shares, reflecting balanced participation at higher levels.
Delta Autocorp Market Sentiment and Analysis
- Market Reaction: Strong opening followed by sustained momentum
- Subscription Rate: The Delta Autocorp IPO was massively oversubscribed by 342.1 times
- Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹15.21 crore before the public issue
Delta Autocorp Growth Drivers and Challenges
Expected drivers of future performance:
- Experienced promoters and management team
- Customer-centric approach
- In-house R&D capabilities
- Strong distribution network
- Mass premium segment focus
- Quality standard certifications
- Diversified product range
Potential challenges:
- High competition in EV sector
- Static top lines in recent years
- Significant borrowings
- Market volatility
- Regulatory changes
Utilisation of IPO Proceeds
The ₹54.60 crore raised (₹50.54 crore fresh issue) will be used for:
- Setting up electric three-wheeler fabrication and painting plant
- Investment in new product development
- Meeting working capital requirements
- General corporate purposes
Delta Autocorp Financial Performance
The company has shown steady results:
- Revenue of ₹81.17 crore in FY2024 compared to ₹80.56 crore in FY2023
- 7M FY2025 (ended October 2024) showed revenue of ₹45.28 crore with PAT of ₹4.81 crore
- Net worth of ₹22.70 crore as of October 2024
- Total borrowings of ₹11.20 crore
As Delta Autocorp begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and improve operational metrics. The strong listing and sustained momentum suggest robust investor confidence in the company's prospects in the electric vehicle sector, particularly given its established dealer network and focus on product innovation through in-house R&D capabilities.
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