New Delhi, Dec 28 (PTI) Automotive components manufacturer Emmforce Autotech has filed draft papers to raise funds through an initial public offering (IPO).

The public issue will be entirely a fresh issue of up to 55,00,000 equity shares, each with a face value of Rs 10, the company said in a statement on Thursday.

Also Read | India’s Remarkable Strides in 2023: A Year of Achievements Across Multiple Fronts.

Post the completion of the IPO, the company's shares are proposed to be listed on the SME Platform of BSE Ltd, a platform for small and medium enterprises, it added.

The company proposes to utilise the proceeds from the fresh issue towards investment in its subsidiary, Emmforce Mobility Solutions Pvt Ltd (EMSPL).

Also Read | Year Ender 2023: From Turkey-Syria Earthquake to Israel-Hamas War and Russia’s Failed Moon Mission, Here Are Top Nine Global Events of The Year.

Proceeds will also be used to meet the working capital requirements of the company, and general corporate purposes, as per the draft red herring prospectus (DRHP).

"We are planning to invest proceeds from the IPO in our subsidiary company EMSPL to expand its manufacturing capabilities and cater to untapped territories, including Europe, South America, Africa, the Middle East, Asia Pacific and India," Ashok Mehta, Chairman and Managing Director of Emmforce Autotech Ltd, said.

The firm, promoted by Mehta, recorded a revenue of Rs 48.75 crore and a profit of Rs 4.38 crore in FY23.

Beeline Capital Advisors Pvt Ltd is the sole book-running lead manager, and Link Intime India Pvt Ltd is the registrar to the issue.

The Panchuka-based company manufactures niche automotive drivetrain parts like differential housings, spindles, axles and shafts, and gear shifters etc.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)