Tunwal E-Motors IPO 2x Subscribed on Day 1; GMP and Status Update
The Tunwal E-Motors IPO has captured the attention of investors, marking a significant event in the electric vehicle (EV) sector. With the subscription period starting on Monday, July 15, and ending on Thursday, July 18, this IPO is poised to be a game-changer. Let’s dive into the details and understand what makes this IPO a promising opportunity.
Overview of Tunwal E-Motors IPO
IPO Subscription Period
The subscription period for the Tunwal E-Motors IPO began on Monday, July 15, and will conclude on Thursday, July 18. This four-day window provides investors with ample time to evaluate and participate in the offering.
Share Price and Minimum Bid
Each share in the Tunwal E-Motors IPO is priced at ₹59, with a face value of ₹2. Investors must bid for a minimum of 2000 shares, with additional bids in multiples of 2000.
Allocation of Shares
Non-Institutional Investors (NII)
Tunwal E-Motors has allocated 93,10,000 equity shares to non-institutional investors. This significant allotment highlights the company’s strategy to attract a broad base of investors.
Retail Individual Investors (RII)
An equal allocation of 93,10,000 equity shares has been made available to retail individual investors, ensuring that small investors have a fair opportunity to participate.
Market Makers
Additionally, 9,80,000 equity shares have been allotted to market makers, facilitating liquidity and stability in the trading of the shares.
Company Background
Founding and Growth
Founded in 2018, Tunwal E-Motors has rapidly emerged as a leader in the EV industry. The company focuses on designing, developing, producing, and distributing premium electric two-wheelers.
Product Range
With over 23 models, including seven two-wheeler variants, Tunwal E-Motors offers a diverse range of products catering to various customer needs and preferences.
Revenue Growth
The company has achieved an impressive 346% compound annual growth rate in revenue, underscoring its strong market presence and operational efficiency.
Promoter’s Background
Jhumarmal Pannaram Tunwal, the promoter of Tunwal E-Motors, brings a wealth of experience in the EV industry. Previously, he worked in a similar capacity at Tunwal Electrionics, a private company producing and marketing electric cars.
Industry Position
Market Presence
Tunwal E-Motors has established a robust presence across 19 states with over 225 dealers nationwide. This extensive network facilitates wide-reaching customer access and support.
Comparison with Peers
The company’s listed peers include Wardwizard Innovations & Mobility Ltd, with a P/E ratio of 117.96, and TVS Motors Ltd, with a P/E ratio of 66.33. Tunwal E-Motors’ competitive positioning is bolstered by its innovative approach and market penetration.
Financial Performance
Revenue
In FY24, Tunwal E-Motors generated ₹10,460.07 lakhs in revenue, reflecting strong sales performance and market demand.
EBITDA
The company’s EBITDA stood at ₹1,783.15 lakhs, indicating robust operational profitability.
PAT
Tunwal E-Motors reported a PAT of ₹1,181.17 lakhs, demonstrating effective cost management and profit generation.
Subscription Status
Day 1 Overview
On the first day of the IPO, Tunwal E-Motors saw a subscription status of 2.00 times, reflecting strong investor interest.
Retail and NII Portions
The retail portion was subscribed 2.96 times, while the NII portion was booked 1.04 times. Overall, the company received bids for 3,72,72,000 shares against 1,86,20,000 shares on offer.
IPO Details
Fresh Issue and OFS
The IPO comprises a fresh issue of equity shares worth ₹81.72 crore and an Offer For Sale (OFS) of 5,750,000 equity shares worth ₹33.93 crore by existing shareholders. This totals a public offering of ₹115.64 crore.
Use of Proceeds
Tunwal E-Motors plans to utilize the net proceeds for:
- Supporting working capital needs
- Research and development
- Inorganic expansion
- General corporate costs
Lead Manager and Registrar
Horizon Management Private Ltd is the lead manager for the issue, ensuring smooth execution and oversight. Skyline Financial Services Private Ltd serves as the registrar, handling the administrative aspects of the IPO.
Grey Market Premium (GMP)
Current GMP Status
As of today, Tunwal E-Motors IPO GMP stands at +14. This indicates that shares are trading at a premium of ₹14 in the grey market, suggesting positive investor sentiment.
Estimated Listing Price
Considering the upper end of the IPO price band and the current GMP, the estimated listing price is ₹73 per share, which is 23.73% higher than the IPO price of ₹59.
Market Trends and Analysis
GMP Fluctuations
The grey market premium has shown some fluctuations, with a low of ₹14 and a high of ₹25 in recent sessions. These variations reflect changing investor perceptions and market dynamics.
Investor Sentiment
The GMP indicates investors’ willingness to pay more than the issue price, showcasing confidence in Tunwal E-Motors’ growth prospects and market potential.
Conclusion
The Tunwal E-Motors IPO presents a compelling opportunity for investors looking to capitalize on the burgeoning EV industry. With strong financials, a diverse product range, and robust market presence, Tunwal E-Motors is well-positioned for future growth. As the subscription period continues, investor interest remains high, signaling positive market reception.
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