BikeWo Green Tech, a prominent electric two-wheeler retailer in India, is making waves with its IPO. Since its inception, the company has primarily focused on the buying and selling of used four-wheelers from authorized dealers of esteemed automobile brands, known as New Car Dealers. As part of its strategy, BikeWo has been actively procuring used cars from these dealers, catering to prospective customers looking to sell or exchange their vehicles for new models. This approach not only enhances their inventory but also strengthens their relationship with customers seeking reliable vehicle exchanges.

The BikeWo IPO, which is a Book Built Issue amounting to ₹24.09 Crores, includes a Fresh Issue of 38.86 Lakh Shares. The subscription period for this promising IPO commenced on September 20, 2024, and will close on September 24, 2024. Investors can expect the allotment to be finalized around September 25, 2024, with shares listing on the NSE SME likely on September 27, 2024.

The share price band for the BikeWo IPO is set between ₹59 to ₹62 per share, with a minimum lot size of 2,000 shares. Retail investors are looking at a minimum investment of ₹124,000, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹248,000 for two lots. The IPO is managed by KHANDWALA SECURITIES LIMITED, with BIGSHARE SERVICES PRIVATE LIMITED acting as the registrar. Aftertrade Broking Private Limited is designated as the sole market maker for this IPO.

As for the Grey Market Premium (GMP) of the BikeWo Green Tech IPO, it is currently projected at ₹0. This figure is crucial to potential investors, as the GMP reflects the unorganized market's demand and supply dynamics but is not a definitive indicator of actual listing prices. It is important to note that no real trading occurs based solely on GMP, so investors should exercise caution. The premium is provided strictly for educational purposes, emphasizing that actual price discovery will only happen upon listing.

Live Subscription Status

As of 7:00 PM on September 24, 2024, the live subscription status for the BikeWo Green Tech IPO reveals a staggering 39.83 times subscription on its final day. This high level of interest indicates significant investor confidence in the company. Interested investors can check the Live Subscription Status directly on the NSE for real-time updates.

Allotment Date Information

The allotment date for the BikeWo IPO is set for September 25, 2024. Investors can check their allotment status through the Registrar’s website by selecting the BikeWo Green Tech Limited IPO from the dropdown list. They will need to input their application number, PAN, or DP Client ID to verify their status. This process ensures that investors can quickly ascertain their allotment and plan their next steps accordingly.

Objectives of the BikeWo Green Tech IPO

The proceeds from the fresh issue are earmarked for several crucial objectives:

₹600.00 Lakhs is allocated for purchasing electric two-wheeler vehicles to expand their dealership offerings.

₹623.38 Lakhs is designated for capital expenditure to set up eleven dealership stores across various states in India.

₹350.00 Lakhs will go towards the prepayment or repayment of certain outstanding borrowings.

The remaining funds will be utilized for General Corporate Purposes.

Financial Performance Overview

From a financial standpoint, the revenues from operations have shown promising growth over the past few fiscal years:

Fiscal 2024: ₹2,514.21 lakhs

Fiscal 2023: ₹2,061.86 lakhs

Fiscal 2022: ₹1,391.71 lakhs

The company's EBITDA for the same periods is:

Fiscal 2024: ₹282.29 lakhs

Fiscal 2023: ₹67.14 lakhs

Fiscal 2022: ₹100.38 lakhs

Notably, the Profit After Tax for these years reflects a healthy upward trend:

Fiscal 2024: ₹167.21 lakhs

Fiscal 2023: ₹9.80 lakhs

Fiscal 2022: ₹15.19 lakhs

For the BikeWo Green Tech IPO, the company projects 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 at 48.43x. With a ROCE of 10.87% and ROE of 13.94% for FY24, these metrics suggest the IPO is reasonably priced amidst its operational growth.

Conclusion and Investment Insight

While the Grey Market Premium (GMP) for BikeWo Green Tech shows a potential listing gain of 0%, investors should consider the financial health and future growth potential of the company. Given the current financial performance and IPO valuation, it is advisable for investors to exercise caution and possibly avoid the BikeWo Green Tech Limited IPO for immediate listing gains or long-term investment.

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