Last Updated: July 01, 2025 | IPO Type: BSE SME | Sector: Automotive Electronics | Status: DRHP Filed
Fourfront Limited IPO Details at a Glance
| IPO Parameter | Details |
|---|---|
| Company Name | Fourfront Limited |
| IPO Size | Up to 65,00,000 Equity Shares |
| Face Value | ₹10 per Equity Share |
| IPO Type | Book Built Issue – Fresh Issue Only |
| Listing Exchange | BSE SME Platform |
| Issue Open Date | To be Announced |
| Issue Close Date | To be Announced |
| Price Band | To be Announced |
| Lot Size | To be Announced |
| Minimum Investment | To be Announced |
| Lead Manager | Beeline Capital Advisors Private Limited |
| Registrar | MUFG Intime India Private Limited |
| Market Maker | To be Announced |
Fourfront Limited IPO Timeline & Important Dates
| Event | Date | Status |
|---|---|---|
| DRHP Filing | June 2025 | ✅ Completed |
| Price Band Announcement | To be Announced | ⏳ Pending |
| IPO Open Date | To be Announced | ⏳ Pending |
| IPO Close Date | To be Announced | ⏳ Pending |
| Basis of Allotment | To be Announced | ⏳ Pending |
| Refund Initiation | To be Announced | ⏳ Pending |
| Credit of Shares | To be Announced | ⏳ Pending |
| Listing Date | To be Announced | ⏳ Pending |
Fourfront Limited IPO Grey Market Premium (GMP) Today
| Parameter | Value |
|---|---|
| Current GMP | Price Band Not Announced |
| GMP Percentage | To be Updated |
| Expected Listing Price | To be Calculated |
| Kostak Rate | To be Updated |
| Subject to Sauda | To be Updated |
Note: Grey Market Premium will be updated once the price band is announced
About Fourfront Limited – Company Overview
Business Profile
Fourfront Limited is a Pune-based Tier-I automotive electronics manufacturer specializing in electromechanical components for leading automotive OEMs. Founded in 2007, the company designs and manufactures switches, USB chargers, CAN bus modules, DC-DC converters, and power distribution units for both internal combustion engine (ICE) and electric vehicles.
Key Business Segments
- Automotive Electronics Manufacturing
- Electrical switches and control systems
- USB charging solutions for vehicles
- CAN bus communication modules
- DC-DC power converters
- Electric Vehicle Components
- EV-specific electronic components
- Power distribution units for electric vehicles
- Charging system components
- Commercial Vehicle Focus
- Strong presence in commercial vehicle OEM segment
- Established relationships with major Indian OEMs
- Expanding into passenger vehicle segment
Manufacturing Facilities
- Primary Facility: Chakan Industrial Area, Pune, Maharashtra
- Expansion Plans: New manufacturing facility under Project FF
- EV Facility: Dedicated EV component manufacturing through subsidiary
Fourfront Limited IPO Objectives & Fund Utilization
Use of IPO Proceeds (₹ in Lakhs)
| Purpose | Amount (₹ Lakhs) | Percentage |
|---|---|---|
| Setting up New Manufacturing Facility (Project FF) | 3,342.00 | ~40.8% |
| Investment in Subsidiary for EV Manufacturing | 2,567.00 | ~31.3% |
| Working Capital for Parent Company | 1,000.00 | ~12.2% |
| Working Capital for Subsidiary | 1,250.00 | ~15.3% |
| General Corporate Purposes | Balance Amount | ~0.4% |
| Total Estimated Proceeds | 8,200.00 | 100% |
Strategic Growth Initiatives
✅ Capacity Expansion: New manufacturing facility to meet growing demand
✅ EV Market Entry: Dedicated investment in electric vehicle electronics
✅ Working Capital Enhancement: Improved operational liquidity
✅ Technology Upgradation: Investment in advanced manufacturing capabilities
Fourfront Limited Financial Performance Analysis
Revenue & Profitability Trends (₹ in Lakhs)
| Financial Parameter | 9M FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Total Revenue (₹ Lakhs) | 7,081 | 12,866 | 7,111 | 5,892 |
| Revenue Growth (%) | -44.9%* | 81.0% | 20.7% | – |
| Net Profit (₹ Lakhs) | 952 | 2,099 | 1,362 | 987 |
| Net Profit Margin (%) | 13.4% | 16.3% | 19.2% | 16.7% |
| EBITDA (₹ Lakhs) | 1,324 | 2,920 | 1,920 | 1,378 |
| EBITDA Margin (%) | 18.7% | 22.7% | 27.0% | 23.4% |
| Net Worth (₹ Lakhs) | 6,330 | 5,578 | 3,991 | 2,949 |
| Return on Net Worth (%) | 15.0% | 37.6% | 34.1% | 33.5% |
*9M FY25 is 9-month period, hence YoY comparison adjusted
Key Financial Highlights
🔹 Consistent Profitability: Maintained positive net profit across all years
🔹 Strong Growth in FY24: Revenue grew 81% YoY in FY24
🔹 Healthy Margins: EBITDA margins consistently above 18%
🔹 Growing Net Worth: Continuous improvement in shareholders’ equity
🔹 Debt-Free Operations: Strong balance sheet with minimal debt
Fourfront Limited IPO Strengths & Risk Analysis
Investment Strengths ✅
- Market Leadership Position
- Tier-I supplier status with major OEMs
- 17+ years of automotive industry experience
- Strong brand recognition in commercial vehicle segment
- EV Market Opportunity
- Strategic positioning for India’s EV transition
- Dedicated EV manufacturing facility investment
- Early mover advantage in EV electronics
- Financial Performance
- Consistent profitability track record
- Strong cash generation capabilities
- Healthy return on net worth
- Strategic Location
- Operations in Pune automotive hub
- Proximity to major OEM customers
- Established supply chain ecosystem
Key Risk Factors ⚠️
- Automotive Sector Cyclicality
- Dependent on automotive industry cycles
- Economic slowdown impact on demand
- Seasonal variations in commercial vehicle sales
- Customer Concentration
- Dependency on major OEM relationships
- Risk of customer loss or reduced orders
- Pricing pressure from large customers
- Technology Evolution
- Rapid changes in automotive electronics
- Need for continuous R&D investment
- Obsolescence risk for existing products
- Competition Intensity
- Increasing competition from domestic and international players
- Price competition in automotive components
- Threat from new entrants in EV space
Fourfront Limited IPO Valuation & Peer Comparison
Industry Peer Comparison (Based on Listed Companies)
| Company | Market Cap | P/E Ratio | Revenue Growth | EBITDA Margin |
|---|---|---|---|---|
| Fourfront Limited | To be Listed | To be Calculated | 81.0% (FY24) | 22.7% (FY24) |
| Automotive Peer 1 | Industry Average | 15–25x | 10–15% | 12–18% |
| Automotive Peer 2 | Industry Average | 15–25x | 8–12% | 10–16% |
| EV Component Peer | Premium Valuation | 25–35x | 25–40% | 15–20% |
Valuation Considerations
- Premium for EV Exposure: Companies with EV focus trading at higher multiples
- SME Discount: SME stocks typically trade at discount to mainboard peers
- Growth Premium: Strong revenue growth may justify higher valuation
- Profitability Advantage: Healthy margins compared to industry average
Fourfront Limited IPO Subscription & Allotment Strategy
Quota-wise Reservation
| Category | Shares Reserved | Percentage |
|---|---|---|
| Qualified Institutional Buyers (QIB) | To be Announced | 50% |
| Non-Institutional Investors (NII) | To be Announced | 15% |
| Retail Individual Investors (RII) | To be Announced | 35% |
Allotment Strategy Tips
- Multiple Demat Accounts: Apply through family members for better chances
- Cutoff Price: Consider applying at cutoff price for higher allotment probability
- Small Applications: Retail investors have better allotment ratios
- HNI Strategy: High net worth individuals should consider proportionate allotment
Fourfront Limited IPO Review & Recommendation
Investment Rationale – BUY/HOLD/AVOID
Recommendation: SUBSCRIBE with LONG-TERM PERSPECTIVE
Reasons to Subscribe ✅
- EV Growth Story: Well-positioned for India’s electric vehicle transition
- Established Business: Proven track record with major OEMs
- Financial Strength: Consistent profitability and strong balance sheet
- Capacity Expansion: Strategic investments for future growth
- Valuation Opportunity: Potential fair valuation for growth prospects
Reasons to be Cautious ⚠️
- SME Liquidity: Limited liquidity compared to mainboard stocks
- Sector Cyclicality: Automotive industry prone to economic cycles
- Execution Risk: Success depends on effective capacity expansion
- Competition: Increasing competition in automotive electronics
Target Investor Profile
- Growth Investors: Seeking exposure to EV and automotive electronics
- Long-term Investors: 3-5 year investment horizon
- SME Specialists: Comfortable with small-cap dynamics
- Sectoral Players: Interested in automotive and EV themes
Fourfront Limited IPO Grey Market Analysis
GMP Tracking Methodology
- Price Band Dependency: GMP tracking starts post price band announcement
- Market Sentiment: Reflects investor demand and market conditions
- Listing Performance: Historical correlation with actual listing gains
- Risk Assessment: Higher GMP indicates higher expectations and risk
Historical SME IPO Performance
- Average Listing Gains: SME IPOs typically show 20-50% listing gains
- Long-term Performance: Mixed results with high volatility
- Success Factors: Business fundamentals and execution capability
Fourfront Limited IPO Application Process
How to Apply for Fourfront Limited IPO
Online Application Process
- Login to Broker Platform: Access through ASBA-enabled broker
- Select IPO Section: Navigate to IPO application module
- Enter Details: Provide application details and UPI ID
- UPI Mandate: Approve UPI mandate for fund blocking
- Application Confirmation: Receive confirmation of successful application
Offline Application Process
- Visit Bank Branch: ASBA-enabled bank branch
- Fill Application Form: Complete physical application form
- Attach Documents: Provide required KYC documents
- Fund Blocking: Ensure sufficient funds in account
- Acknowledgment: Collect application acknowledgment
Required Documents
- PAN Card: Mandatory for all applications
- Aadhaar Card: KYC verification
- Demat Account: Active demat account required
- Bank Account: ASBA-enabled bank account
- Mobile Number: For OTP verification
Disclaimer
This analysis is for informational purposes only and should not be considered as investment advice. Investors are advised to consult with their financial advisors and carefully read the company’s DRHP before making any investment decisions. Past performance does not guarantee future results.
Source: Company DRHP, BSE SME, Financial Reports | Last Updated: July 01, 2025