Fourfront Limited Files DRHP for SME IPO of Up to 65 Lakh Shares; Proceeds to Fund EV Expansion and Capacity Growth
By Shishta Dutta | Published at: Jun 27, 2025 05:26 PM IST
Pune, June 27, 2025 – Fourfront Limited, a Tier-I supplier of electromechanical and electronic components to leading automotive OEMs, has filed its Draft Red Herring Prospectus (DRHP) with BSE for a proposed initial public offering of up to 65,00,000 equity shares of face value ₹10 each. The IPO will be listed on the SME platform of BSE, and the price band is yet to be announced.
Issue Snapshot
- Type of Issue: Entirely a fresh equity offering
- Regulation: Regulation 229(2), Chapter IX of SEBI (ICDR) Regulations, 2018
- Book Running Lead Manager: Beeline Capital Advisors Private Limited
- Registrar to the Issue: MUFG Intime India Private Limited
Use of Proceeds
As per the DRHP, the net proceeds will be utilised towards:
| Purpose | Allocation (₹ in lakhs) |
|---|---|
| Setting up a new manufacturing facility (Project FF) | 3,342.00 |
| Investment in subsidiary for EV manufacturing unit (Project EV) | 2,567.00 |
| Incremental working capital for parent entity | 1,000.00 |
| Working capital for subsidiary | 1,250.00 |
| General corporate purposes (subject to cap) | To be finalized |
The company has confirmed it will not use any part of the proceeds for loan repayment or bridge financing.
Financial Highlights (Consolidated)
| Metric | 9M FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from operations (₹) | 7,081 lakh | 12,866 lakh | 7,111 lakh |
| Net Profit (₹) | 952 lakh | 2,099 lakh | 1,362 lakh |
| EBITDA Margin (%) | ~18.7% | ~22.7% | ~27.0% |
| Net Worth (₹) | 6,330 lakh | 5,578 lakh | 3,991 lakh |
Promoter Holding
The company is entirely promoter-held prior to the issue, with Shrikant Narayan Neurgaonkar and Ashish Arvind Kalay each holding 50%. All pre-IPO equity shares will be subject to lock-in as per SEBI regulations.
About Fourfront Limited
Fourfront Limited is a Pune-based manufacturer of automotive electromechanical components with a growing focus on EV power electronics. 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.
The company has a strong presence in the commercial vehicle OEM segment and is now strategically expanding into the EV electronics space through backward integration and design-led R&D investments. It operates through two wholly owned subsidiaries to support this transition. Fourfront’s primary manufacturing facility is located in the Chakan Industrial Area, Pune, with plans to significantly scale capacity. A new facility under Project FF is being developed to meet rising domestic and export demand, while an EV-focused plant under one of its subsidiaries will cater specifically to India’s accelerating e-mobility growth.
REF: https://www.bsesme.com/download/340924/SME_IPO InPrinciple/2DRHP_Fourfront_Limited_20250626205310.pdf
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