Eco Fuel Systems (India), a company specializing in CNG, LPG, and LNG fuel conversion kits, has taken a significant step towards its Initial Public Offering (IPO). The company has officially submitted its issue papers with the National Stock Exchange (NSE) for SME listing, marking a key milestone in its journey towards public listing.
Eco Fuel Systems IPO: Business Overview
Founded in 2003, Eco Fuel Systems (India) specializes in distributing and retrofitting CNG, LPG, and LNG fuel kits for cars and heavy vehicles. The company has an exclusive agreement with Landi Renzo SpA, an Italian firm known for its alternative fuel technology, which sells its alternate fuel kits under the brand name LOVATO. By offering cost-effective and eco-friendly fuel solutions, Eco Fuel Systems is positioning itself as a key player in the growing clean energy automobile sector.
Eco Fuel Systems IPO Details
- Fresh Issue Size: 60,03,200 equity shares
- Face Value: INR 10 per share
- Listing Platform: NSE Emerge
- Book Running Lead Manager: Arihant Capital Markets Limited
- Registrar to the Issue: Skyline Financial Services Pvt. Ltd.
Utilization of Net Issue Proceeds
Eco Fuel Systems aims to use the IPO proceeds for business expansion, working capital, and investment in its subsidiary. The funds will primarily go towards:
✅ Purchasing new vehicles and upgrading infrastructure – INR 12.99 crore
✅ Working capital needs – INR 17.02 crore
✅ Loan to subsidiary (EcoFuel Cylinders Pvt. Ltd.) – INR 10.50 crore
✅ General corporate purposes – The exact amount to be finalized later.
Promoters and their Holding
The company is promoted by three key individuals:
- Mr. Virendra Maneklal Vora (40.37%)
- Mrs. Vibha Virendra Vora (41.81%)
- Mr. Nemin Virendra Vora (16.70%)
Before the IPO, the promoters collectively hold 98.69% of the company, leaving only 1.31% of the shares with the public.
Financial Performance – A Quick Look
Eco Fuel Systems has been consistently growing, with strong financial numbers backing its IPO move:
💰 Revenue (FY 2024) – INR 75.39 crore
📈 Profit After Tax (FY 2024) – INR 7.60 crore
💵 Net Worth (FY 2024) – INR 59.05 crore
📊 Earnings Per Share (FY 2024) – INR 4.83
What’s Next?
Now that Eco Fuel Systems has submitted its issue papers with NSE SME, the next step will be regulatory approvals, followed by the finalization of IPO dates and pricing. Once the green light is received, the IPO will open for subscription, allowing investors to become part of this growing alternative fuel company.
Final Thoughts
With increasing government support for green energy and emission reduction, the demand for CNG and LPG fuel kits is expected to rise. Eco Fuel Systems’ IPO could be a promising opportunity for investors looking to tap into the clean energy revolution in India’s automobile sector.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.