Investing in Tunwal E-Motors IPO: A Sustainable Bet or a Risky Ride?

NiftyTrader • July 12, 2024

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Tunwal E-Motors (IPO) opens on July 15, 2024, and closes on July 18, 2024. The allotment for the Tunwal E-Motors IPO is anticipated to be completed on Friday, July 19, 2024. The IPO will be listed on the NSE and SME, with a tentative listing date set for Tuesday, July 23, 2024.

The Tunwal E-Motors IPO’s price band is Rs 59 per share. The IPO is a book-built issue of Rs 115.64 crores, entirely a fresh issue of 138.5 lakh shares.

Tunwal E-Motors IPO Details

IPO Date	July 15, 2024 to July 18, 2024
Listing Date	[.]
Face Value	₹2 per share
Price	₹59 per share
Lot Size	2000 Shares
Total Issue Size	19,600,000 shares (aggregating up to ₹115.64 Cr)
Fresh Issue	13,850,000 shares (aggregating up to ₹81.72 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Shareholding pre-issue	41,451,080
Shareholding post issue	55,301,080
Market Maker portion	980,000 shares
Offer for Sale	5,750,000 shares of ₹2 (aggregating up to ₹33.93 Cr)

Tunwal E-Motors IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹118,000
Retail (Max)	1	2000	₹118,000
HNI (Min)	2	4000	₹236,000

Tunwal E-Motors IPO Objectives

The objectives of the Issue are:

To meet working capital requirements.
General Corporate Purpose.
Research & Development.
Pursuing Inorganic Growth.

About Tunwal E-Motors Limited

Tunwal E-Motors Pvt. Ltd. is a company specializing in 100% electric two-wheelers, founded in 2018 to replace gas-powered bikes. The company has introduced over 23 different models in the local market to meet various needs. Tunwal E-Motors has a presence in 19 states through a network of more than 256 dealers.

When appointing a dealer, Tunwal E-Motors requires them to provide after-sales services to customers, including routine maintenance, battery management, diagnostics, safety checks, and component replacement.

Tunwal E-Motors Limited Financial Information

Tunwal E-Motors Limited’s revenue increased by 37.85% and profit after tax (PAT) rose by 217.11% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	7,582.97	5,694.49	5,037.44
Revenue	10,553.69	7,655.74	7,566.42
Profit After Tax	1,181.17	372.48	233.94
Net Worth	2,053.08	821.91	424.43
Reserves and Surplus	1,224.06	409.40	321.55

Tunwal E-Motors IPO Reservation

Investor Category	Shares Offered
Other Shares Offered	50% of the Net issue
Retail Shares Offered	50% of the Net issue

Tunwal E-Motors IPO Timeline

Tunwal E-Motors IPO opens on July 15, 2024, and closes on July 18, 2024.

IPO Open Date	Monday, July 15, 2024
IPO Close Date	Thursday, July 18, 2024
Basis of Allotment	Friday, July 19, 2024
Initiation of Refunds	Monday, July 22, 2024
A credit of Shares to Demat	Monday, July 22, 2024
Listing Date	Tuesday, July 23, 2024
Cut-off time for UPI mandate confirmation	5 PM on July 18, 2024

Conclusion

Tunwal E-Motors is set to launch its IPO from July 15 to July 18, 2024, with shares priced at ₹59 each, aggregating up to ₹115.64 crores. With a focus on electric two-wheelers, the company aims to use the funds to meet working capital requirements, general corporate purposes, research and development, and pursue inorganic growth. Boasting a strong dealer network and impressive financial growth, Tunwal E-Motors presents a compelling opportunity for investors. The allotment is expected by July 19, with the listing anticipated on July 23 on the NSE SME. This IPO offers a chance to invest in a rapidly growing company committed to sustainable transportation solutions.