The Electro Force (India) Ltd. IPO: Verify GMP, first-day subscription status, and other important information

 The Electro Force (India) Ltd. IPO: Verify GMP, first-day subscription status, and other important information

The initial public offering (IPO) of Electro Force (India) Ltd. begins on December 19 and ends on December 21 at a price range of ₹93 per share. Electro Force (India) Limited is an Indian company that designs and produces electrical components and metal/plastic contact parts for a range of industries.

The IPO for Electro Force (India) Limited is scheduled to finish on Thursday, December 21, with subscriptions closing on Tuesday, December 19. The initial public offering (IPO) price range for Electro Force (India) Limited is ₹93 per share. In the Electro Force IPO, there are 1,200 shares each lot. A minimum of 1,200 shares, as well as multiples of that number, are up for purchase.

In India, Electro Force (India) Limited designs and produces electrical components and metal/plastic contact parts for switchgear, lighting, electronics, and allied sectors.

63A Electrical Manual Transfer Switch, Electrical MCCB and RCB, Brushless DC Motors for Automation, Aerospace, and Medical Designs and Manufactures Components; protection; electrical motor starter; electrical control gear; and electrical switches are among the components that are stamped using metal stamping, injection molding, and insert molding.

The company's P/E of 20.22 is lower than that of its industry rivals Centum Electronics Ltd. (P/E of 191.78) and RIR Power Electronics Ltd. (P/E of 100.74), according to the Red Herring Prospectus (RHP).

Electro Force (India) Ltd. saw a -7.48% reduction in profit after tax (PAT) and a -12.04% loss in sales between the fiscal year ended March 31, 2023, and March 31, 2022.

Details about Electro Force (India) Limited's IPO

The ₹80.68 crore Electro Force IPO consists of an offer for sale (OFS) component with 2,674,800 shares having a face value of ₹10 and a new issuance of 6,000,000 equity shares priced at ₹55.80 crore. according to RHP 24.88 crore.

The net proceeds of the offering will be used by the company for general business purposes, inorganic expansion financing, and extra working capital needs.

First Overseas Capital Ltd. is the book running lead manager and Skyline Financial Services Pvt. Ltd. is the registrar of the Electro Force India IPO. The market maker for the Electro Force India IPO is Arham Shares.

"We are able to: (i) carry out our current business operations; and (ii) undertake the activities envisaged to be supported from the net revenue thanks to the major object clauses set out in the Memorandum of Association and objectives incidental and auxiliary to the main purpose. The firm said in its statement, "In addition, our company anticipates benefits from the listing of equity shares, such as improving our visibility and brand image among our current and potential customers and the creation of a public market for our equity shares in India." RHP.

Subscription Status for Electro Force (India) Limited's IPO

As of day one, 49% of subscribers have signed up for the Electro Force IPO. Chittorgarh.com data indicates that retail investors responded well to the offer, with 88% of their share subscribed and 10% coming from non-institutional purchasers.

According to information from Chittorgarh.com, the business got bids for 40,32,000 shares against the 82,39,200 shares that were on sale at 14:53 IST.

Today's IPO GMP for Electro Force (India) Limited

The gray market premium, or IPO GMP, for Electro Force (India) Limited is +10. This suggests that the share price of Electro Force (India) Ltd. was selling at a premium of ₹10 on the gray market, according to InvestorGain.com.

Given the highest limit of the initial public offering (IPO) price range and the current gray market premium, the expected listing price of Electro Force (India) Ltd. shares was ₹103 per share, representing a 10.75% increase over the IPO price of ₹93.

The readiness of investors to pay a premium above the issue price is referred to as the "grey market premium."

Review of Electro Force India Limited

The business competes in a crowded and very competitive market. Its top and bottom lines showed varying patterns across the reporting periods. FY24 annual super profits suggest that the issue is properly priced. One of the main concerns is whether these margins can continue in the future. According to contributing editor of Chittaurgarh Dilip Davda, "there is no harm in skipping this risky IPO.”