Delta Autocorp IPO sees 309 times subscription on Day 3, GMP soars sharply

Delta Autocorp IPO

The SME IPO of Delta Autocorp recorded 309 times subscription on January 9, the final day of bidding, with investors bidding for 93.63 crore equity shares against offer size of 30.3 lakh shares via 4.58 lakh applications.

The electric two-wheeler and three-wheeler maker under the Deltic brand approached capital markets to raise Rs 54.60 crore via maiden public issue. The issue was opened for subscription on January 7 with price band of Rs 123-130 per share.

The IPO comprised of fresh issuance of 38.88 lakh shares worth Rs 50.54 crore, and an offer-for-sale of 3.12 lakh shares worth Rs 4.06 crore.

All investors showed robust interest in the issue with, non-institutional investors (NIIs) leading the charge with 625.9 times subscription. Retail investors picked 314.5 times their allotted quota, while the part set aside for qualified institutional buyers (QIBs) was subscribed 178.2 times.

The company will finalise IPO share allotment by January 10, and investors can start trading in shares on the NSE Emerge effective January 14.

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The Delta Autocorp shares were available at around 90 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial market wherein IPO shares can be bought and sold till the listing, while the participants track grey market numbers to gauge the expected listing price, though that may not be a 100% current indication for price.

The Kolkata-based company, which has a network of over 300 dealers across 25 states and Union Territories and focusses on B2B transactions, already mopped up Rs 15.21 crore from institutional investors via anchor book on January 6.

The fresh issue proceeds will be utilised mainly for setting up an electric three-wheeler fabrication plant & painting plant, new product development, working capital requirement, and general corporate purposes.

GYR Capital Advisors is acting as the book running lead manager to the issue.