BikeWo GreenTech IPO: A Mixed Start on the NSE SME Platform
Shares of BikeWo GreenTech, an emerging player in the electric two-wheeler market, made their debut on the SME platform of the National Stock Exchange (NSE) today. Even though the company’s Initial Public Offering (IPO) was met with enthusiastic investor interest, fetching bids that were over 41 times the amount offered, its market entry revealed a stark contrast. The shares were issued at a price of ₹62 but started trading at ₹45.00 on listing day, leading to an immediate loss of about 27.42% for IPO investors. However, the stock saw an uptick, hitting the upper circuit limit of ₹47.25 shortly after, which still leaves early investors with a loss of 23.79%.
Strong Subscription Response But Underwhelming Listing Performance
BikeWo GreenTech’s IPO, valued at ₹24.09 crore, was open for subscription from September 20 to 24, 2024. The overall subscription rate reached an impressive 41.82 times: Qualified Institutional Buyers (QIB) subscribed 43.03 times, Non-Institutional Investors (NII) 22.48 times, and retail investors a hefty 61.04 times. A total of 38.86 lakh new shares, with a face value of ₹10 each, were issued as part of this IPO. The capital raised is earmarked for various strategic initiatives, including purchasing and selling electric two-wheelers to both new and existing dealers, establishing 11 dealership stores across multiple states, repaying existing loans, and addressing general corporate needs.
About BikeWo GreenTech
Established in December 2006, BikeWo GreenTech has carved a niche in the electric two-wheeler sector, with operations primarily across the states of Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat. The company has created a diverse dealership ecosystem offering three dealership types: State Dealership, Diamond Dealership, and Platinum Dealership. It partners with notable electric vehicle brands including Ola Electric, Quantum Scooters, Bounce, and GT Force, enhancing its market presence.
Financial Overview
| Financial Year | Net Profit (₹) | Revenue (₹) CAGR | Debt (₹) |
|---|---|---|---|
| 2022 | 15.19 lakh | N/A | 7.84 crore |
| 2023 | 9.8 lakh | N/A | 14.19 crore |
| 2024 | 1.67 crore | 34%+ | N/A |
In terms of financial performance, the company’s net profit showcased fluctuations, with a decrease to ₹9.8 lakh in FY 2023, followed by a notable recovery to ₹1.67 crore in FY 2024. Simultaneously, the company’s revenue has demonstrated resilience, achieving a compound annual growth rate (CAGR) of over 34% to reach ₹25.14 crore. However, it’s crucial to note that the company’s debt levels have also seen a significant rise, escalating from ₹7.84 crore to ₹14.19 crore between FY 2022 and FY 2023.
Conclusion
The mixed performance of BikeWo GreenTech’s IPO suggests a volatile start for investors, despite overwhelming subscription demand. As the company navigates its growth trajectory in the competitive electric vehicle market, potential and existing investors will be keenly watching how effectively it utilizes the funds raised to sustain its operations and enhance profitability.
