Tunwal E-Motors Ltd IPO: Review, Valuation, Opening Date & GMP

Tunwal E-Motors Limited IPO-Complete Overview

Tunwal E-Motors Limited IPO announced by Tunwal E-Motors Limited was founded in December 2018, Tunwal E-Motors Limited is a manufacturer of electric vehicles (EVs) with a focus on creating, developing, producing, and marketing premium electric two-wheelers.

To meet a range of needs, the company has launched more than 23 different models in the local market. Through a network of more than 256 dealers, the company is present in 19 states. In India, the company has about 256 dealers in its network. The dealership is required by the corporation to offer its clients after-sale services such as routine upkeep, battery management, testing, security checks, and component replacement.

8000 square meters make up the company's manufacturing facility, which is situated in Palsana, Sikar. At its Palsana facility, Tunwal E-Motors Ltd. produces electric bikes, with a maximum output of 41,000 pieces.

There were 64 permanent employees at the company as of March 31, 2024.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 15, 2024. Let's take a closer look at the IPO's offerings below.

Tunwal E-Motors Limited IPO Overview

Tunwal E-Motors IPO is an SME fixed price issue of Rs.115.64 crore with a combination of a Fresh Issue of 138.5 lac Shares (amounting to Rs.81.72 crore) and an offer for sale of 57.5 lac Shares amounting to Rs.33.93 crores out of which 50% is reserved for retail investors, and 50% for other investors. 

The IPO will be available to investors on July 15, 2024, and conclude on July 18, 2024. The anticipated listing date for the IPO is Tuesday, July 23, 2024, and will be held on the NSE and SME. The price of each Share is Rs.59.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 37.85%, while profit after tax (PAT) increased by 217.11% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue from operations of the company is Rs.10,553.69 lac

• The net worth of the company is Rs.2,053.08 lac.

• The company's EBITDA is Rs.1,783.15 lac.

• The total assets of the company is Rs.7,582.97 lac.

• The company’s total Liabilities is Rs.5,529.89 lac.
  
  

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	7,582.97	5,694.49	5,037.44
Total Revenue	10,553.69	7,655.74	7,566.42
PAT	1,181.17	372.48	233.94
Net worth	2,053.08	821.91	424.43
Reserve & Surplus	1,224.06	409.40	321.55

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash flow in multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	17.89	-208.07	-254.68
Net Cash Flow Investing Activities	-84.78	-186.08	-651.30
Net Cash Flow Financing Activities	4.23	459.96	1,066.18

 

Region-wise Revenue Breakdown

 

 

The Objective Of The Issue

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

• Financing of the company's needs for working capital.

• Investigation and Progression

• Seeking Inorganic Development

• Corporate Goals in General.
  
  

Peers Of Tunwal E-Motors Limited

(As of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Wardwizard Innovations & Mobility Limited	1	0.52	117.96
TVS Motors	1	35.50	66.33

 

Evaluation

The price of this IPO is Rs.59 for each Share.

Evaluation Of P/E Ratio

Considering the FY 2023-2024, with EPS of Rs.2.85 from the last year, the resulting P/E ratio is 20.70x.

Considering the weighted EPS of Rs.2.23 for the last three years, the P/E ratio is 26.45x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 92.14x.

Particulars	P/E Ratio
Highest	117.96
Lowest	66.33
Average	92.14

In simple words, the P/E ratio of Tunwal E-Motors Limited-IPO (20.70x and 26.45x) when compared with the industry’s average P/E of 92.14x, has a much lower valuation. Hence the amount of the Share seems justified for the investors.

IPO's Strengths

• Seasoned leadership Supported by an Experienced Group.

• With more than 23 models, including 7 versions that are developed and on the market, Tunwal E-Motors Limited stands out in the electric vehicle industry. The company has established itself as an emerging player in the sector thanks to its focus on producing high-quality and unique designs for electric two-wheelers. This has resulted in a varied and ongoing addition to the product catalog.

• A well-established and growing dealer network.

• Dedicated towards environmental sustainability.

• One thing that sets Tunwal E-Motors apart is their constant dedication to sustainability. The business's electric motorcycles contribute to a more sustainable and cleaner future in line with the global focus on eco-friendly transportation. 

 

IPO’s Weaknesses

• The company relies on outside sources to provide it with raw materials, and they don't have any exclusive or contractual supply agreements with any of its suppliers. Losing suppliers could negatively impact its operations, financial situation, and business.

• The company revenue is derived from its distributors and dealers, therefore any decline in sales or revenue from any of these important officials might affect its operations and overall business performance.

• Customer pricing pressure could have a negative impact on its profitability and gross margin. Incapacity to raise its pricing, which could materially harm its financial situation and operating results.

• Its expected manufacturing, delivery schedules, and profitability could be impacted by faults, quality concerns, supply disruptions, or price increases for the components utilized in its electric vehicles. These events would also raise the cost of materials and the electric vehicles themselves.

• Since they mostly sell low-speed electric two-wheelers that are neither registered under Vahan nor need a number under the Motor Vehicle Act, there is no accurate or trustworthy data to demonstrate the industry's growth in this specific segment.

 

IPO GMP Today

Tunwal E-Motors Limited IPO’s latest GMP is Rs.5.

Tunwal E-Motors Limited IPO timetable (Tentative)

The IPO is scheduled from July 15 to July 18, 2024, with allotment on July 19, refund initiation on July 22, and listing on July 23, 2024.

Events	Date
IPO Opening Date	July 15, 2024
IPO Closing Date	July 18, 2024
IPO Allotment Date	July 19, 2024
Refund initiation	July 22, 2024
IPO Listing Date	July 23, 2024

 

Tunwal E-Motors Limited IPO Details 

The IPO with a face value of Rs.2 per Share is set to start on July 15, close on 18 July, and offer a total issue size of 19,600,000 Shares of Rs.115.64 Cr comprising a fresh issue size of 13,850,000 Shares of Rs.81.72 Cr.

IPO Opening & Closing Date	July 15, 2024 to July 18, 2024
Face Value	Rs.2 per Share
Issue Size	19,600,000 Shares of total Rs.115.64 Cr
Offer for Sale	5,750,000 Shares of total Rs.33.93 Cr
Fresh Issue	13,850,000 Shares of total Rs.81.72 Cr
Listing at	NSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

Tunwal E-Motors Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.118000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.236000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Tunwal E-Motors Limited IPO Reservation

Retail Share Portion	50%
Others Share Portion	50%

 

Promoters And Management Of Tunwal E-Motors Limited IPO

• Jhumarmal Pannaram Tunwal

• Amitkumar Pannaram Mali 

• Jhumarmal Pannaram Tunwal HUF

Pre-Issue Promoter Shareholding	97.04%
Post-Issue Promoter Shareholding	62.34%

 

Tunwal E-Motors Limited IPO Lead Managers

• Horizon Management Private Limited

 

 

Dividend Policy

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

Conclusion

The company has seen negative cash flow in operating activities and investing activities in the last few financial years. The company desires to use the Net Proceeds from the Issue to Finance the company's capital expenditure needs for the construction of an inventory storage facility and display center in Ahmedabad, Gujarat, to acquire machinery and plant at a current industrial facility & Corporate Goals in General. To fulfill its objectives, the company is currently conducting an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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