Tunwal E-Motors IPO subscription status and GMP update

The Tunwal E-Motors IPO began its subscription period on Monday, July 15, and will continue until Thursday, July 18. The IPO is priced at ₹59 per share, with a face value of ₹2 each. Investors can bid for a minimum of 2000 shares and in multiples thereof.

IPO Subscription Details:

Retail Individual Investors (RII): Subscribed 2.90 times

Non-Institutional Investors (NII): Subscribed 1.04 times

Overall Subscription: 1.97 times on day 1

A total of 93,10,000 equity shares have been allotted to both NII and RII, with an additional 9,80,000 shares allocated to market makers. By the end of the first day, bids for 3,66,06,000 shares were received against the 1,86,20,000 shares on offer.

Company Background:

Tunwal E-Motors, established in 2018, is a prominent player in India's electric vehicle (EV) two-wheeler industry. The company has expanded its presence across 19 states with over 225 dealers, offering 23 models, including seven two-wheeler variants. The firm boasts a 346% compound annual growth rate in revenue.

For FY24, Tunwal E-Motors reported:

Revenue: ₹10,460.07 lakhs

EBITDA: ₹1,783.15 lakhs

PAT: ₹1,181.17 lakhs

IPO Financial Details:

The IPO consists of a fresh issue of equity shares worth ₹81.72 crore and an Offer For Sale (OFS) of 5,750,000 shares worth ₹33.93 crore by existing shareholders, totaling ₹115.64 crore.

Use of Proceeds:

Working capital needs

Research and development

Inorganic expansion

General corporate costs

GMP (Grey Market Premium) Update:

The grey market premium (GMP) for Tunwal E-Motors IPO is currently +₹14. This suggests that the shares are trading at a premium of ₹14 in the grey market, implying an estimated listing price of ₹73 per share—23.73% higher than the IPO price of ₹59.

Recent GMP activity indicates a downward trend, with analysts projecting the GMP to fluctuate between ₹14 and ₹25.

Key Managers:

Lead Manager: Horizon Management Private Ltd

Registrar to the Issue: Skyline Financial Services Private Ltd

Comparative Analysis:

Tunwal E-Motors' listed peers include Wardwizard Innovations & Mobility Ltd (P/E of 117.96) and TVS Motors Ltd (P/E of 66.33).

Conclusion:

Tunwal E-Motors' IPO shows promising initial interest, reflected in its robust subscription rates and a steady GMP. Investors are advised to consult with certified experts before making investment decisions.