Supertech EV Limited, a company focused on next-generation electric vehicles, opened its SME IPO worth ₹29.90 Crores on June 25, 2025, closing on June 27, 2025. The issue was entirely a fresh issue of 32.49 lakh equity shares. The shares are proposed to be listed on the BSE SME platform on July 02, 2025, with allotment expected by June 30, 2025.

Despite being in a futuristic industry like smart electric vehicles, Supertech EV IPO witnessed a muted response, with a subscription of just 0.62 times on the final day. This signals weak interest among investors despite the growing electric mobility segment in India.

The IPO price band is fixed at ₹87 to ₹92 per equity share, with a market capitalisation of ₹113.69 Crores at the upper price band. The lot size for investors is 1,200 shares, requiring a minimum investment of ₹1,10,400 for retail investors. For HNIs, the minimum application requires 2 lots or ₹2,20,800.

The issue is managed by Corporate Makers Capital Limited, and Skyline Financial Services Pvt Ltd is acting as the registrar. Asnani Stock Broker Pvt Ltd is the designated market maker for the IPO.

Grey Market Premium and Listing Expectations

The Grey Market Premium (GMP) of Supertech EV IPO remained flat at ₹0 throughout the subscription period. This translates into no expected listing gain, as the expected listing price remains the same as the upper band price of ₹92.

While GMP is not an official indicator of listing success, it often reflects market sentiment and demand-supply expectations in the unofficial market. In this case, the absence of a premium indicates that investors may have refrained from speculative interest in the offering.

Company Background and Business Model

Supertech EV Limited is engaged in the manufacturing, assembling, distribution, export, and supply of battery-operated electric vehicles, catering to both passenger and commercial segments. Its products are certified by the INTERNATIONAL CENTRE FOR AUTOMOTIVE TECHNOLOGY (ICAT) under the brand “Pilot”.

The company aims to leverage the growing demand for sustainable and smart transportation, and its portfolio aligns with India’s green mobility mission. However, despite operating in a futuristic and policy-backed sector, the company struggled to attract significant IPO investor interest.

Financial Performance and Growth

From a financial standpoint, Supertech EV has shown considerable growth over the past three financial years.

• Revenue from operations increased from ₹23.75 Lakh in FY23 to ₹6514.08 Lakh in FY24, and reached ₹7519.11 Lakh in FY25, indicating exponential business expansion.

• EBITDA figures also reflect positive operational leverage: from ₹0.96 Lakh in FY23 to ₹746.96 Lakh in FY24, and ₹965.82 Lakh in FY25.

• Profit After Tax (PAT) showed significant growth: ₹6.35 Lakh (FY23) to ₹502.28 Lakh (FY24) and ₹619.35 Lakh (FY25).

Such numbers typically indicate a fast-scaling company, with improved cost-efficiency and revenue base. However, the IPO outcome suggests that investors may have either found valuation stretched, or lacked confidence in long-term profitability, especially in a highly competitive electric mobility landscape.

IPO Valuation and Ratios

The pre-issue Earnings Per Share (EPS) for FY24 is ₹6.82, while the post-issue EPS stands at ₹5.01. Based on the price band:

• Pre-issue P/E ratio is 13.48x

• Post-issue P/E ratio is 18.36x

• Industry peers average at higher multiples, but given the company’s small scale and SME status, the valuation is seen as fair, but not compelling.

Other financial ratios include:

• Return on Capital Employed (ROCE): 47.95%

• Return on Equity (ROE): 36.66%

• Return on Net Worth (RoNW): 47.95%

These healthy metrics point to efficient capital deployment and high profitability, yet listing interest appears subdued, likely due to macroeconomic conditions or SME sector risks.

Utilisation of IPO Proceeds

The company intends to use the IPO proceeds in the following manner:

1. ₹16.5 Crores for working capital, required for daily operations and expansion in vehicle supply and production.

2. ₹3 Crores for partial repayment of existing borrowings, aiming to improve the company’s debt-to-equity structure.

3. The remaining proceeds will go toward general corporate purposes, offering flexibility to the management for business development initiatives.

Promoter Background and Experience

The promoters of the company include:

• Mr. Yetender Sharma with 20 years of experience

• Mr. Jitender Kumar Sharma with 25 years of experience

• Ms. Geetanjali Sharma with 15 years of experience

Their collective experience spans across automotive, operations, and management, which provides a strong leadership foundation. However, the lack of a strong institutional anchor base or industry alliances may have affected investor trust during IPO subscription.

IPO Allotment and How to Check

The Supertech EV IPO allotment date is June 30, 2025. Investors can check the allotment status through the registrar’s website (Skyline Financial Services Pvt Ltd) by:

• Selecting Supertech EV Limited IPO

• Entering PAN, Application Number, or DP Client ID

• Clicking submit to get the status of allotment

This step ensures transparency and allows retail and HNI investors to track their share allocation.

Final Verdict – Should Investors Apply?

Despite the company operating in a booming EV sector, the weak IPO response, GMP of ₹0, and subdued listing expectations raise caution flags for investors. The Supertech EV IPO review suggests that while the financial performance has improved dramatically, the lack of market enthusiasm makes it unsuitable for short-term listing gains.

Given the current subscription trend, risk-averse investors are advised to avoid this IPO, particularly for speculative or short-term purposes. Long-term investors who believe in the EV sector's growth potential and the company’s ability to scale might still consider tracking the post-listing performance before entering.

Conclusion

The Supertech EV IPO had the potential to ride the electric mobility wave in India, but failed to attract significant investor interest during its three-day offering period. With only 0.62x subscription, no visible grey market traction, and an uncertain listing outlook, investors are rightfully cautious.

While the financials show exponential growth, and the business model is aligned with future transport needs, the IPO’s lukewarm reception reflects broader concerns about valuation, scalability, or investor sentiment in the current SME IPO landscape.

Disclaimer:
This article is for educational and informational purposes only. It should not be construed as financial advice or an offer to buy/sell securities. Investment in securities is subject to market risks. Always consult a professional advisor before making any investment decisions.

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