Eco Fuel Systems (India) files DRHP for NSE Emerge IPO, fresh issue of 60.03 lakh shares

New Delhi: Eco Fuel Systems (India) Ltd has begun the process of its SME listing by filing its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The company plans to launch an initial public offering (IPO) through a 100% book-built fresh issue of up to 60,03,200 equity shares with a face value of ₹10 each. Details regarding the price band, lot size, and subscription dates will be announced in due course.

Arihant Capital Markets has been appointed as the book-running lead manager, while Skyline Financial Services will serve as the registrar. The company has received in-principle approval for listing on NSE Emerge, with NSE designated as the stock exchange.

Eco Fuel Systems, incorporated in 2003 and publicly listed in 2024, operates in the alternative fuel systems industry. The company distributes, retrofits, integrates, and tests conversion kits for LPG, CNG, and LNG, catering to both four-wheelers and heavy commercial vehicles. Its business model is distributor-centric, combining pan-India reach through dealers and retrofit centres. The promoters of the company are Virendra Maneklal Vora, Vibha Virendra Vora, and Nemin Virendra Vora. A key component of its growth strategy is its exclusive distribution agreement with Italy’s Landi Renzo SpA for Lovato conversion kits in India, valid through December 2026.

Eco Fuel Systems India IPO Objectives Of The Issue

Eco Fuel Systems intends to use the net proceeds to fund several activities, including a capital expenditure of ₹1,298.44 lakh for the purchase of vehicles, modifications to these vehicles, and approvals; general working capital of ₹1,900 lakh; and a loan to its subsidiary, Ecofuel Cylinders Pvt Ltd, of ₹1,050 lakh. The company also intends to use part of its proceeds for general corporate purposes, in accordance with applicable regulations. The funds will be deployed in a staggered manner as needed over fiscal years 2026 and 2027.

Eco Fuel Systems India IPO Financial Performance

According to the restated consolidated FY25 numbers, the company generated revenue from operations of ₹8,102.62 lakh and a profit after tax (PAT) of ₹1,221.76 lakh. The net worth was ₹7,102.86 lakh, while the total assets were ₹9,073.44 lakh, and borrowings were ₹1,175.62 lakh. Earnings per share were ₹7.76, and NAV per share was ₹45.11.

Eco Fuel Systems India IPO Shareholding Pattern

The promoters currently own 98.28% of the pre-issue share capital, comprising 41.68% held by Vibha Vora, 39.96% by Virendra Vora, and 16.64% by Nemin Vora. The final prospectus will include post-issue ownership.

Eco Fuel Systems India IPO Key Considerations

The company’s performance is heavily reliant on its exclusive distribution agreement for Lovato conversion kits. In addition, its business model is working-capital-intensive, with receivables and funding requirements highlighted in the DRHP. Finally, Eco Fuel Systems remains dependent on obtaining regulatory approvals to expand operations across both retail and institutional segments.

Outlook

Eco Fuel Systems’ Initial Public Offering provides investors with access to an expanding clean fuel ecosystem in India. Although reliance on suppliers and regulatory risks is concerning, the company’s strong collaboration and capital utilization focused on expansion are expected to deliver favourable growth within the medium term.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/sezalm_01102025163833_Final_DRHP.pdf

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