Electro Force-India Makes Decent Debut on NSE Amid IPO Details

Electro Force-India Makes Decent Debut on NSE Amid IPO Details

VoM News Desk | December 27, 2023 | 11:32 AM IST | Breaking News | Follow on Google News

Electro Force-India Makes Decent Debut on NSE Amid IPO Details/Mint

Electro Force-India Makes Decent Debut on NSE Amid IPO Details

Electro Force (India) witnessed a moderate debut on the NSE on Wednesday, December 27. The stock opened at ₹100, showcasing a premium of 7.5% over its issue price of ₹93. It soon climbed to ₹105 but later retraced to trade around ₹95.20 by 10:15 am.

The initial public offering (IPO) of Electro Force (India) opened for subscription between December 19 and December 21 at a price band of ₹93 per share, with a lot size of 1,200 shares.

The IPO valued at ₹80.68 crore comprised a fresh issue of 6,000,000 equity shares worth ₹55.80 crore and an offer for sale (OFS) component of 2,674,800 shares, aggregating up to ₹24.88 crore, as per the RHP (Red Herring Prospectus).

The company intends to utilize the net proceeds from the IPO for inorganic growth, general corporate purposes, and additional working capital requirements.

Skyline Financial Services Private Ltd served as the registrar for the IPO, while First Overseas Capital Limited acted as the book-running lead manager. Arham Shares functioned as the market maker.

In its Red Herring Prospectus, the company highlighted the potential benefits of listing its equity shares, including improved visibility, enhanced brand image, and the creation of a public market for its shares in India.

Reviewing the Electro Force India IPO, Dilip Davda, contributing editor at Chittorgarh, cited concerns about the company operating in a highly competitive and fluctuating segment. While considering the issue fully priced based on FY24’s annualized super earnings, he expressed apprehension regarding the sustainability of margins, advising caution regarding this IPO.

VoM News Desk

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