FourFront Limited officially announced that it has secured in-principle approval from the Bombay Stock Exchange (BSE) to launch its SME Initial Public Offering (IPO). The company has also received clearance for its Draft Red Herring Prospectus (DRHP), moving one step closer to debuting on the stock market.
About FourFront Limited
FourFront Limited is a leading automotive component manufacturer specialising in electromechanical and power electronics products. Its designs cater primarily to the electric vehicle (EV) and industrial automotive sectors.
IPO Size & Structure
The proposed IPO will consist of 65,00,000 fresh equity shares, each carrying a face value of ₹10.
Utilisation of IPO Funds
The capital raised from the IPO will be used for:
- Partial funding of the company’s upcoming Project FF.
- Meeting incremental working capital requirements.
- Investment into its wholly-owned subsidiary for the planned Project EV.
- General corporate purposes to strengthen its market position.
The company believes that this IPO will boost its expansion plans and enhance competitiveness in the fast-growing EV sector.
Lead Manager & Registrar
Book Running Lead Manager: Beeline Capital Advisors Pvt. Ltd.
Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Key Risk Factors
As per the RHP, FourFront Limited’s revenue is highly dependent on a single major customer, which is among India’s top automotive OEMs. Any change in procurement policies by this client could significantly affect the company’s financial performance.
Promoters
The business is promoted by Shrikant Narayan Neurgaonkar and Ashish Arving Kalay.
