Tunwal E-Motors Limited is coming up with an IPO worth INR 115.64 crores, consisting of a fresh issue of shares worth INR 81.72 crores and an offer to sell existing shares worth INR 33.93 crores. The company aims to fund working capital and R&D, pursue inorganic growth, and cover general corporate expenses. 

Tunwal E-Motors IPO – Important Dates 

Tunwal E-Motors Limited IPO – Company Profile 

Established in 2018, Tunwal E-Motors Limited quickly emerged as a key player in India’s EV sector. It specializes in designing, developing, manufacturing, and distributing high-quality electric two-wheelers for sustainable and eco-friendly mobility solutions. 

With a new facility in Palsana, Rajasthan, the company efficiently manufactures affordable, user-friendly electric scooters. Registered with BIS and SAE International, it aims to advance electric mobility and contribute to a sustainable future. 

The company excels in Sales, Accounts, HR, and Service with a streamlined organizational structure. Adding an R&D Department enhances innovation, positioning the company for sustained growth in India’s electric vehicle sector. 

Tunwal E-Motors Ltd IPO Fundamental Analysis 

Tunwal E-Motors Limited’s financial analysis reveals a mixed performance. Revenue has increased, reflecting strong growth. Profitability and EPS are rising, while the debt-equity ratio is improving. However, inventory turnover suggests potential inefficiencies. 

1. Revenue Trend: The revenue increased from ₹7,545.91 lakhs in March 2022 to ₹7,650.18 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR  10,460.07 lakhs, crossing the previous year’s annual benchmark. 

2. Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 

3. Profitability: The profit after tax (PAT) has increased from ₹233.94 lakhs in March 2022 to ₹1,181.17 lakhs by March 2024. The rise in profitability could be a source of confidence for investors. 

4. Earnings per Share (EPS): The diluted EPS has also increased from ₹1.21 in March 2022 to ₹2.85 by March 2024, reflecting higher earnings per share for investors. 

5. Return on Net Worth (RoNW): The RoNW has risen from 55.12% to 57.53%, indicating an increase in the company’s ability to generate returns on shareholder equity.

6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
7. Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management. 

Tunwal E-Motors IPO Financial Analysis 

Tunwal E-Motors Limited IPO Peer Comparison 

Tunwal E-Motors Ltd shows robust growth with increasing revenue, profitability, and return on equity, though inventory turnover raises concerns. Wardwizard Innovations & Mobility Limited and TVS Motors display varying revenue, profitability, and efficiency performance. 

Tunwal E-Motors Ltd IPO Objective 

The main objective of Tunwal E-Motors Limited is to fund working capital needs, invest in research and development, and pursue inorganic growth strategies. 

1. Funding the working capital requirements of the company: The company intends to utilize INR 35 crores from the net proceeds to fund its working capital requirements for Fiscal 2025, supporting its operational and growth needs. 

2. Research & Development: The company plans to spend INR 4.50 crores over the next two fiscal years on R&D, focusing on new designs, battery technology, innovative materials, and infrastructure, including dedicated manpower and extensive testing to enhance product offerings. 

3. Pursuing Inorganic Growth: They seek to acquire or joint venture with small EV tech startups in India, focusing on battery solutions and E2W design. This will enhance their product offerings, improve margins, and strengthen their market position. 

4. General Corporate Purposes: The company will deploy the balance funds of INR 20.41 crores from the Net Proceeds for general corporate purposes, including strategic initiatives, general procurement, brand building, and strengthening marketing activities. 

Tunwal E-Motors IPO Risks And Challenges 

Tunwal E-Motors Limited’s risk includes ongoing legal issues, potential cost overruns and competitive pressures in EV development, and reliance on non-exclusive supplier agreements. These factors could impact financial performance, production, and market reputation. 

• Their company faces ongoing legal proceedings, including a criminal case involving dishonored cheques against a group company and its promoter. Adverse outcomes could increase liabilities, divert management focus, and negatively impact the reputation and financial condition. 

• Their growth hinges on successful EV development and market introduction. Risks include cost overruns, competitive pressures, delays, ineffective technology use, and regulatory issues. Managing these risks could harm their brand, market share, and financial performance. 

• Their reliance on nonexclusive, non-binding supplier agreements poses risks of defective or delayed raw materials. Limited supplier options and potential competitor prioritization could disrupt production, impacting their business, operations, and financial condition. 

Tunwal E-Motors Ltd IPO – Industry & Market Potential 

India’s electric two-wheeler (E2W) market is rapidly growing, with E2Ws dominating the two-wheeler segment. E2W sales are rising, and projections suggest sales penetration may exceed 80% by 2030. 

In December 2022-23, Ola led the E2W market with a 26% share, followed by TVS and Hero Electric. Low-speed E2Ws dominate 65.2% of the market, while E2W exports are projected to exceed US$ 28-30 million by 2030. 

India’s growing prominence in automotive manufacturing, particularly for electric two-wheelers, is fueled by cost benefits and government incentives. This trend is expected to advance renewable energy use and drive EV adoption. 

Tunwal E-Motors Limited IPO – Type of Offer 

Tunwal E-Motors Limited plans a fresh issue of shares, seeking INR 81.72 crores to repay outstanding loans and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 33.93 crore existing shares.

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 81.72 crores. The company intends to utilize the proceeds from the fresh issue to fund working capital, and R&D, pursue inorganic growth, and cover general corporate expenses.
2. Offer for sale: Tunwal E-Motors Limited is offering to sell existing shares worth INR 33.93 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Tunwal E-Motors IPO Offer Size 

The offer size of Tunwal E-Motors Limited is INR 115.64 crores, consisting of a fresh issue of INR 81.72 crores and an offer to sell existing shares worth INR 33.93 crores. The company seeks funds for working capital and R&D to pursue inorganic growth and cover general corporate expenses. 

Tunwal E-Motors Limited IPO Allotment Structure 

Tunwal E-Motors Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 980,000 shares for Market Makers. 

• Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.

• Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs. 

• Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 980,000 shares for this purpose. 

How to apply for a Tunwal E-Motors IPO?

To apply for the Tunwal E-Motors Limited IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Tunwal E-Motors IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Tunwal E-Motors Limited’s IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Tunwal E-Motors IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app. 
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Tunwal E-Motors IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Tunwal E-Motors IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of Tunwal E-Motors Limited. 

Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Tunwal E-Motors IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and SME: You can also check the allotment status on the National Stock Exchange (NSE) and Small Medium Exchange (SME) official websites. You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes. 

Tunwal E-Motors Ltd IPO Offer Registrar 

The registrar for the Tunwal E-Motors Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

D-153 A, 1st Floor, 

Okhla Industrial Area, Phase – I, 

New Delhi-110020

Contact Number: +91-11-40450193-197

Email Address: [email protected]

Website: www.skylinerta.com 

Tunwal E-Motors IPO FAQs

1. What is the allotment date of the Tunwal E-Motors IPO?

The allotment date of the Tunwal E-Motors is July 19, 2024. 

2. What is the price band of the Tunwal E-Motors IPO?

The price band of the issue is INR 59 per share. 

3. What is the size of the Tunwal E-Motors IPO? 

The offer size of Tunwal E-Motors Limited is INR 115.64 crores, consisting of a fresh issue of INR 81.72 crores and an offer to sell existing shares worth IND 33.93 crores. The company seeks funds for working capital and R&D to pursue inorganic growth and cover general corporate expenses. 

4. What is the listing date of the Tunwal E-Motors IPO?

The listing date of Tunwal E-Motors is July 23, 2024.