BikeWo GreenTech, a prominent electric two-wheeler retailer, is witnessing significant interest in its initial public offering (IPO), which opened for subscription on September 20, 2024.
Key Highlights
- BikeWo GreenTech IPO experiencing strong subscription, with retail segment oversubscribed by 10.96 times
- Grey Market Premium (GMP) at Rs 20, indicating potential listing price of Rs 82
- Allotment of shares expected on September 25, with listing on NSE SME platform on September 27
The company operates in multiple Indian states, including Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat. It uses a dealership model with three options: state, diamond, and platinum.
The IPO consists of a fresh issue of 38.86 lakh shares valued at Rs 24.08 crore. On Day 1, the offering was subscribed 1.28 times, and by noonaon Day 2, it surged to 6.02 times. As of September 23, the public issue had seen a subscription of 10.96 times in the retail segment, while the Qualified Institutional Buyers (QIB) segment reported no subscriptions. The Non-Institutional Investors (NII) segment was subscribed 1.72 times, according to data from chittorgarh.com.
Key Dates and Allotment Information
The allotment of shares is expected to be finalized on September 25, 2024, with successful applicants seeing shares credited to their Demat accounts on September 26. Refunds for non-allottees will also be processed on this day. The shares are anticipated to list on the NSE SME platform, Emerge, on September 27.
Market Insights
The Grey Market Premium (GMP) for the IPO stands at Rs 20 as of September 23, indicating a likely listing price of Rs 82. Based on the IPO’s price band of Rs 62.00, this represents a potential gain of approximately 32.26% per share.
Utilization of Funds
BikeWo GreenTech plans to use the funds raised from the IPO to acquire electric two-wheelers for its dealers, establish 11 new dealership locations across India, settle outstanding borrowings, and cover general corporate expenses.
Company Leadership
The IPO is managed by Khandwala Securities Limited, with Bigshare Services Pvt Ltd serving as the registrar and Aftertrade Broking as the market maker. The company is led by promoters Katepalli Manideep, Satyapoorna Chander Yalamanchili, N Vidhya Sagar Reddy, and Manvi Talwar.
ELCTRIK Speaks
The BikeWo GreenTech IPO is gaining significant traction, with strong subscription numbers in the retail segment indicating a growing interest in electric vehicles and sustainable transportation in India. The company’s clear strategy for using the funds—expanding dealership locations and acquiring inventory—demonstrates a proactive growth approach. The Grey Market Premium (GMP) suggests potential listing gains, likely attracting further investor interest.
