BikeWo Green Tech is an emerging player in the electric two-wheeler retail market in India. Since its inception, the company has also engaged in the business of buying and selling used four-wheelers from authorized dealers of reputable automobile brands. This dual approach allows them to cater to a wide range of customers looking to sell or exchange their vehicles.

The BikeWo IPO is a Book Built Issue amounting to ₹24.09 crores, consisting of a fresh issue of 38.86 lakh shares priced between ₹59 and ₹62 per share. The subscription period runs from September 20 to September 24, 2024, with allotment expected by September 25 and listing on the NSE SME projected for September 27.

Retail investors are required to invest a minimum of ₹124,000 for 2,000 shares, while High-Net-Worth Individuals (HNIs) must buy a minimum of 4,000 shares, costing ₹248,000. KHANDWALA SECURITIES LIMITED is the book-running lead manager, and BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar.

As of 12:14 PM on September 20, 2024, the live subscription status shows 0.50 times subscription on the first day. The Grey Market Premium (GMP) is expected to range from ₹5 to ₹10, indicating possible listing gains, although trading based on GMP is not recommended due to its unregulated nature.

Objectives of the IPO

Proceeds from the fresh issue will be allocated as follows:

₹600.00 Lakhs for purchasing electric two-wheeler vehicles for sale to dealers.

₹623.38 Lakhs for capital expenditure related to establishing eleven dealership stores across various states.

₹350.00 Lakhs for prepayment or repayment of outstanding borrowings.

General corporate purposes.

Financial Performance

The company has demonstrated steady financial growth:

Revenues from Operations: ₹2,514.21 lakhs (FY 2024), ₹2,061.86 lakhs (FY 2023), ₹1,391.71 lakhs (FY 2022).

EBITDA: ₹282.29 lakhs (FY 2024).

Profit After Tax: ₹167.21 lakhs (FY 2024).

For the BikeWo Green Tech IPO, the company is issuing shares with a pre-issue EPS of ₹2.51 and a post-issue EPS of ₹1.28. The pre-issue P/E ratio stands at 24.70x, while the post-issue P/E ratio is 48.43x. The company's ROCE for FY24 is 10.87%, and ROE is 13.94%, suggesting a fair pricing of the IPO.

Investment Recommendation

While the Grey Market Premium suggests potential listing gains, investors are advised to avoid the BikeWo Green Tech IPO for immediate gains or long-term investment due to the inherent risks and overall market conditions.

The current active IPO is Avi Ansh Textiles Limited, Phoenix Overseas Limited, BikeWo GreenTech Limited, SD Retail Limited, Kalana Ispat.

The Recently Listed IPOs which is available for trading in stock Market are RNFI Services Limited, Sanstar Limited, Sahaj Solar Limited, Macobs Technologies Limited IPO, Kataria Industries Limited IPO, Sati Poly Plast Limited, Aelea Commodities Limited, Prizor Viztech Limited, Three M Paper Boards Limited, BANSAL WIRE INDUSTRIES, EMCURE PHARMACEUTICALS, NEPHRO CARE INDIA, Diensten Tech Limited, Vraj Iron and Steel Limited, Divine Power Energy Limited.

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