Supertech EV, a rising company in the electric vehicle (EV) segment, made its debut on the BSE SME exchange on July 2, 2025, with a listing price of ₹73.60, reflecting a 20% discount from its IPO price of ₹92. Despite its IPO being oversubscribed 4.40 times, the listing was underwhelming and was followed by further decline, signaling cautious investor sentiment amid broader uncertainties in the EV market.

The Supertech EV IPO, a book-built issue amounting to ₹29.90 crore, involved a fresh issue of 32.49 lakh equity shares. The subscription window, which remained open from June 25 to June 27, 2025, drew high interest from retail investors. The IPO price band was fixed at ₹87 to ₹92, with a lot size of 1,200 shares, requiring a minimum investment of ₹1,10,400 for retail participants and ₹2,20,800 for HNIs applying for 2 lots.

Despite this enthusiasm, the Grey Market Premium (GMP) remained at ₹0, indicating muted speculative interest. It suggested that no meaningful price discovery occurred in the unofficial market. GMP trends, while commonly observed by retail traders, are neither regulated nor always indicative of true listing outcomes.

Supertech EV Limited is involved in designing, manufacturing, assembling, and distributing electric vehicles, primarily electric two-wheelers and e-rickshaws. The company operates through a dual strategy—domestic manufacturing for e-rickshaws using indigenous components such as brakes, motors, and axles, while assembling electric scooters using CKD kits imported from China.

The company's foundation lies in Supertech Inc, a proprietorship launched by Mr. Jitender Kumar Sharma in 2005. The operations were later transferred to Supertech EV Limited via a business acquisition agreement on April 1, 2023, consolidating its footprint in the Indian EV space. As of May 31, 2025, the company had 148 employees on payroll and operated manufacturing units in Haryana.

With a strong distribution network comprising 445 distributors across 19 Indian states, including Delhi, Haryana, Punjab, Maharashtra, Odisha, Telangana, and others, the company boasts pan-India reach. Its product range includes 12 models—8 electric two-wheelers and 4 e-rickshaw variants, catering to both B2B and B2C markets.

The IPO proceeds will be used to fund:

• Working capital requirements to the tune of ₹16.5 crore

• Partial debt repayment of around ₹3 crore

• General corporate purposes including business expansion, branding, and operations

The company benefits from several strengths:

• A diverse EV product portfolio offering flexible mobility options

• A wide-reaching distribution network enabling high market penetration

• A dual production model—in-house and outsourced—helping manage costs

• Experienced leadership with strong strategic and operational capabilities

• Commitment to quality control and stringent QA frameworks

• Strong alignment with India’s clean energy and EV adoption goals

Despite these strengths, there are significant risk factors that investors must consider:

1. Product development and scaling risks: Lack of prior large-scale manufacturing experience could delay product rollouts, lead to cost overruns, or cause supply chain disruptions.

2. Fierce competition: The Indian EV space is crowded with major players like Ola Electric, Hero Electric, TVS, Ather, and Bajaj, all offering aggressive pricing, brand loyalty, and distribution advantages.

3. Battery safety issues: EVs carry lead-acid and lithium-ion batteries, both of which have shown incidents of fire or explosion in recent cases across India. This adds regulatory scrutiny and reputational risk.

4. Compliance challenges: Vehicles must meet safety and performance standards under the Central Motor Vehicle Rules, 1989, and be certified by ICAT (International Centre for Automotive Technology). Non-compliance could result in delays or bans.

On the industry front, the Indian EV market has witnessed strong recovery post-COVID. EV penetration touched 7% of overall vehicle sales in FY24, with the electric two-wheeler (E2W) segment growing at a CAGR of 143% between FY20 and FY24. The electric three-wheeler (E3W) market also grew significantly, registering 56% growth in FY24, fueled by e-commerce and urban mobility needs.

The appeal of EVs is enhanced by:

• Lower total cost of ownership (TCO)

• Rising fuel prices for traditional ICE vehicles

• Government subsidies under FAME and state-level policies

• Greater environmental awareness among consumers

• Expansion of charging infrastructure

However, challenges remain—limited range, charging gaps, inconsistent after-sales support, and quality concerns still impact buyer confidence.

To stay competitive, Supertech EV plans to:

• Expand distributor networks using a competitive onboarding process

• Adopt advanced technologies and training programs to boost operational efficiency

• Ensure compliance with global quality and safety standards

• Strengthen stakeholder relationships for consistent long-term growth

Although the Supertech EV share price dropped on listing day, this does not negate the company’s potential in the fast-growing electric vehicle sector in India. Investor caution is understandable, especially given the high valuation and unpredictable performance of recent SME IPOs. However, with strategic execution, Supertech EV could capture meaningful market share in Tier 2, 3, and 4 cities where electric mobility adoption is rising.

In conclusion, Supertech EV’s debut at ₹73.60, which was 20% lower than the IPO price, signals investor wariness but also presents a potential long-term value opportunity. The company’s focus on environmentally sustainable mobility, its pan-India presence, and alignment with India’s green goals place it well within the EV transformation wave. How well it capitalizes on this momentum will decide the future of Supertech EV in public markets.

The Upcoming IPOs in this week and coming weeks are Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

The Current active IPO are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

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