The electric vehicle (EV) revolution is gaining momentum in India, and Tunwal E-Motors, a manufacturer of electric two-wheelers, is set to join the race through an IPO on the NSE SME platform. This blog dives into the details of the offering, explores the company's profile, and analyses the potential benefits and risks to help you decide if this investment aligns with your goals.
Tunwal E-Motors IPO fundamentals
- Issue Type: Fixed Price Issue (combination of fresh issue and offer for sale)
- Issue Size: Rs 115.64 crores
- Fresh Issue: Rs 81.72 crores
- Offer for Sale: Rs 33.93 crores
- Face Value: Rs 10 per share
- Issue Price: ₹59 per share
- Open Date: July 15, 2024
- Close Date: July 18, 2024
- Listing Date (Tentative): July 23, 2024 on NSE SME
Minimum investment for the Tunwal E-Motors IPO
- Retail Investors: ₹118,000 (minimum lot of 2000 shares)
- HNI (High Net Worth Individuals): ₹236,000 (minimum lot of 4,000 shares)
About Tunwal E-Motors
- Established in December 2018, Tunwal E-Motors designs, develops, manufactures, and distributes electric two-wheelers.
- The company boasts a diverse product portfolio with over 23 electric two-wheeler models catering to various customer needs.
- Tunwal E-Motors has established a pan-India presence with a network of over 256 dealers across 19 states.
- Their focus on after-sales service ensures customer satisfaction through routine maintenance, battery management, and other support.
Tunwal E-Motors financials
- Tunwal E-Motors' recent financial performance is promising, with revenue growth of 37.85% and a significant jump in profit after tax (PAT) by 217.11% in FY 2024 compared to FY 2023.
- The rising demand for EVs in India suggests potential for future growth, but the company faces stiff competition in this evolving market.
Tunwal E-Motors IPO: investment highlights
- Playing the EV Trend: The Indian EV market is expected to witness significant growth, and Tunwal E-Motors is positioned to capitalise on this trend.
- Diverse Product Portfolio: The company caters to a broad range of customer requirements with over 23 electric two-wheeler models.
- Established Dealer Network: Tunwal E-Motors' pan-India presence through its dealer network ensures wider market reach.
Investment considerations for the Tunwal E-Motors IPO
- SME Listing: This is an SME IPO investment, which generally carries higher risks compared to listings on the main NSE board. Lower liquidity and higher volatility are common features of SME stocks.
- Competition: The Indian EV market is becoming increasingly competitive. Tunwal E-Motors will need to focus on innovation, product quality, and cost-effectiveness to stand out.
- Limited Track Record: As a relatively young company, Tunwal E-Motors' long-term viability and ability to sustain its growth rate might be less certain compared to established players.
Conclusion
The Tunwal E-Motors IPO offers an opportunity to invest in a company with a growing presence in the promising Indian EV market. However, the SME listing, competition, and limited track record present certain risks. Carefully weigh the pros and cons and ensure this aligns with your investment strategy before making a decision.
Disclaimer
This blog is for informational purposes only and should not be considered financial advice. Before investing in any IPO, conduct thorough research, consult a qualified financial advisor, and carefully consider your risk tolerance and investment goals.
