Tunwal E-Motors had a strong debut on the NSE SME today, with its share price opening at ₹64, 8.5% higher than the issue price of ₹59.
The IPO subscription period for Tunwal E-Motors began on Monday, July 15, and closed on Thursday, July 18. The IPO had a face value of ₹2 per share and was priced at ₹59. Investors had to bid for a minimum of 2000 shares or multiples thereof. On the last day, the IPO was subscribed 12.31 times.
Tunwal E-Motors is a growing player in the electric vehicle (EV) two-wheeler market. The company has expanded to 19 states, has over 225 dealers, and offers more than 23 models, including seven two-wheelers. They have achieved a 346% compound annual growth rate in revenue. The company’s promoter, Jhumarmal Pannaram Tunwal, previously ran a similar business under the name Tunwal Electrionics.
Tunwal E-Motors’ listed competitors include Wardwizard Innovations & Mobility Ltd (P/E of 117.96) and TVS Motors Ltd (P/E of 66.33).
In the fiscal year 2024, Tunwal E-Motors reported sales of ₹10,460.07 lakhs, EBITDA of ₹1,783.15 lakhs, and PAT of ₹1,181.17 lakhs.
Tunwal E-Motors IPO Details
The IPO included a fresh issue of equity shares worth ₹81.72 crore and an Offer For Sale (OFS) of 5,750,000 equity shares worth ₹33.93 crore by existing shareholders. This brought the total public offering to ₹115.64 crore.
The company plans to use the proceeds for working capital, research and development, expansion, and general corporate purposes.
Horizon Management Private Ltd was the lead manager for the issue, and Skyline Financial Services Private Ltd was the registrar.
Tunwal E-Motors IPO Grey Market Premium (GMP) Today
The grey market premium for Tunwal E-Motors’ IPO was +5 today, according to investorgain.com. This means shares were trading at a ₹5 premium in the grey market. With the IPO price set at ₹59 and the grey market premium, the expected listing price was ₹64, which is 8.47% higher.
The grey market premium shows that investors were willing to pay more than the issue price.
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