BikeWo GreenTech IPO: Review, Valuation, Date & GMP

BikeWo GreenTech IPO-Complete Overview

BikeWo GreenTech IPO an SME IPO is a book-built issue of Rs.24.09 crore by BikeWo GreenTech Ltd. that was established in December 2006. India's Bikewo Green Tech Limited is an electric motorcycle store. The states of Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat are home to the company's brand.

The corporation uses dealership models to run its operations. To their dealers, they provide three different kinds of dealerships:

• Dealership State

• Dealership for Diamonds

• Dealership for Platinum

The business intends to open locations in Patna, Bhubaneshwar, Nagpur, Bangalore, Trivandrum, Chandigarh, Lucknow, Raipur, Indore, Delhi, Chandigarh, and Prayagraj.

This new SME IPO is to be launched on 20 September 2024, and its ‘initial public offering’ will end on 24 September 2024. 

 

 

BikeWo GreenTech IPO Overview

The Rs.24.09 crore BikeWo GreenTech Ltd. IPO consists of an entirely fresh issue of 38.86 lac Shares. This SME IPO date is from September 20-September 24, 2024. The IPO listing date is Friday, September 27, 2024, on NSE and SME. The IPO price band is Rs.59 to Rs.62 for each Share.The IPO with a Face Value of Rs.10 per Share offers a total issue size of 3,886,000 Shares (aggregating up to Rs.24.09 Cr.).

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company's revenue grew by 22% and PAT increased by 1606% between the FYs ended  March 31, 2024 and March 31, 2023.

Below is the synopsis of the company's financial data for the period that ended 31 March 2024.

• The total assets of the company are Rs.3,151.35 lac.

• The total revenue of the company is Rs.2,514.21 lac.

• The company’s PAT is Rs.167.21 lac.

• The net worth of the company is Rs.1,676.7 lac.

• The company’s EBITDA is Rs.282.29 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Service-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

State-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Funding the procurement of electric two-wheeler vehicles for selling and delivering the same to our new and existing dealers

• Financing the capital expenses that are planned to be spent on opening eleven dealership locations across many Indian states

• Repayment in full or in part of some outstanding loans that the company has taken out

• General corporate purposes.

 

Peers of BikeWo GreenTech Ltd. 

There are no listed companies in India or abroad engaged in the same business of comparable size. 

 

Evaluation

BikeWo GreenTech IPO price is Rs.59 to Rs.62 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.51 from the last year, the resulting P/E ratio is 24.70.

Considering the weighted EPS of Rs.1.37 for the last three years, the P/E ratio is 45.25.Note: The basic EPS of the peers is for the financial year ending 31 March 2024. 

Comparative Analysis With Listed Peers

No listed companies. So it is not possible to provide industry comparison.

 

IPO's Strengths 

• Leading EV dealer for significant OEMs, with an emphasis on fast-growing markets

• Its current network and storage capacities

• Dealership presence and network in multiple states

• Expanding market share in the after-sales sector driving steady revenue growth and higher profits

• Wide-ranging market presence

• Sturdy business procedures that make use of digitalization

• Professional management team with technological know-how and an experienced promoter.

 

IPO’s Weaknesses

• Its business and operational outcomes could be negatively impacted by any disruption in the multi-brand electric vehicle trading and dealership sector, on which it heavily relies.

• Relies heavily on its dealers for a large amount of its revenue, thus any decline in sales or revenue from any of its important middlemen could hurt its company.

• The company wants to enter new markets. As a result, it runs the risk of incurring large liabilities and losing all of its investment there. This could harm the operations, financial situation, and business.

• The earnings are mostly reliant on a small number of brands. The loss of any of its main brands, or a reduction in the volume or supply from those brands, will have a significant negative impact on the profits and sales.

• The majority of its retail sales are generated by the stores in Telangana and Andhra Pradesh, where its stores are mostly concentrated. Any unfavorable events that influence its business activities in these states could negatively affect the revenue.

• Negative Cash Flows of the company in various activities in the previous fiscal years is a negative point for the company.

 

BikeWo GreenTech IPO GMP Today

BikeWo GreenTech IPO GMP today is Rs.10 as of 17 September 2024. With a price band of Rs.62, the BikeWo GreenTech IPO listing price is Rs.72 (expected listing price).

16.13% is the anticipated percentage gain or loss per share.

 

IPO Timetable (Tentative)

The BikeWo GreenTech IPO date is from September 20 to September 24, 2024, with allotment on September 25, refund initiation on September 26, and the BikeWo GreenTech  IPO listing date on September 27, 2024.

 

BikeWo GreenTech IPO Details 

 

BikeWo GreenTech IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,24,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,48,000.

 

BikeWo GreenTech IPO Reservation

 

Promoters And Management of BikeWo GreenTech Ltd.

• Katepalli Manideep

• Satyapoorna Chander Yalamanchili

• N Vidhya Sagar Reddy

• Manvi Talwar.

IPO Lead Managers

• Khandwala Securities Limited.

 

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

In the most recent fiscal years, the company's operational, financing, and investment operations resulted in negative cash flow. The company is currently launching an IPO for the general public to accomplish its goals.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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