Delta Autocorp Limited is engaged in the business of manufacturing and selling of 2-wheelers & 3-wheelers EVs. Delta Autocorp IPO look to raise Rs 54.60 crores. The issue is a combination of fresh issue aggregating to Rs 50.54 crores and offer for sale aggregating to Rs 4.06 crores.

About: Delta Autocorp

• Incorporated in 2016, Delta Autocorp Limited focuses on manufacturing and selling electric 2W and 3W vehicles.
• Its Product Range encompasses electric scooters, electric rickshaws, electric loaders, and electric garbage carts.includes electric scooters like Deltic Drixx and Deltic Trento, and electric rickshaws such as Deltic Star and Deltic Vayu.
• It sources advanced components from original equipment manufacturers (OEMs)
• As more cities enforce regulations for eco-friendly transportation, the demand for electric rickshaws and two-wheelers is expected to soar.
• It also deals in Motors, DC-DC converters, speedometers, and other accessories
• Promoters of Company are Mr. Ankit Agarwal, Mrs. Priyanka Agarwal and Mr. Sanwarmall Agarwalla.

Financials: Delta Autocorp IPO

Anchors: Delta Autocorp IPO

Delta Autocorp IPO: Salient Points

• India’s electric vehicle (EV) market is poised for significant growth, with an estimated investment of ₹12.5 trillion needed by 2030 to meet electrification goals. Companies that dominate the mark are Ola holding a 26% market share, followed by TVS (14.5%) and Hero Electric (12.5%).
• As more cities enforce regulations to combat pollution by eco-friendly transportation, the demand for electric rickshaws and two-wheelers is expected to soar.
• Use of Net proceeds:
  • Establishing a three-wheeler fabrication and painting plant: Rs. 4.42 crore
  • New product development: 21.32 crore
  • Working capital requirements: 11.46 crore
  • General corporate purposes 
• The Company operates under the brand name “Deltic”.
• They marked a significant milestone in 2017 with the launch of their first E-Rickshaw, boasting an impressive mileage of over 150 Km.

• Observing market trends and shifting customer preferences, Delta Autocorp expanded its product range to include electric two-wheelers. Prototype development commenced in 2018, leading to the launch of affordable and durable scooters in 2019, 
• company’s R&D department in Uttar Pradesh employs 11 dedicated professionals focused on designing electric vehicles tailored to customer needs and preferences. As of 31 October 2024, Delta Autocorp Limited has a workforce of 139 employees.
• The electric two-wheeler and three-wheeler market is becoming increasingly competitive.
• Revenue Bifurcation:
  • Electric Scooters): 41.67%
  • 3 Whelers, i.e. Electric Rickshaws, Loaders, Garbage Carts: 50.08%
  • Spares & Accessories: 8.25%
• Major presence in following states:
  • West Bengal: 25.71%
  • Uttar Pradesh: 21.23%
  • Bihar: 16.56%
  • Jharkhand: 12.51%
• –
• They are exploring tie-ups with government entities to supply products like the Electric Garbage Cart (Garbo), E-scooters, and E-rickshaws.

• Leveraging the Gujarat government’s GEDA subsidy scheme for EV adoption. They have registered with the Gujarat Energy Development Agency (GEDA) subsidy scheme. The Gujarat Energy Development Agency (GEDA) scheme, initiated by the Gujarat government, aims to promote the adoption of electric vehicles (Evs) within the state. Under this scheme, the Gujarat government provides a subsidy of ₹10,000 to Students in 9^th to 12^th standard purchasing electric vehicles.
• company already has service centers at all our more than 300 dealers. They have plans to establish service centers EV Hub, where dealers will offer maintenance and repair services not only for Deltic vehicles but also for other brands’ vehicles and components, including child parts.
• They envision the opening of over 800+ Deltic service outlets in the next 5 years as part of commitment to providing comprehensive and efficient service solutions.
• Debt to Equity Ratio: 0.49
• Peers:

• PE FY25 (annualized) 24x ; PE Fy24: 24x
• I intend to apply in Delta Autocorp IPO. As EVs gain acceptance, there may be ample opportunities for Delta Autocorp. Their “Deltic” brand of EVs is focusing on affordable and durable EVs for tier-2 and tier-3 towns.
• GMP as reported on social media is around Rs. 110 (80%).
• GYR Capital Advisors Private Limited is the book-running lead manager and has an excellent track record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.