BikeWo GreenTech Limited is launching its IPO, a book-built issue worth ₹24.09 crores, entirely composed of a fresh issue of 38.86 lakh shares. The IPO will be open for subscription from September 20, 2024, to September 24, 2024. The allotment of shares is expected to be finalised on Wednesday, September 25, 2024, with the company’s shares tentatively set to be listed on the NSE SME on Friday, September 27, 2024.
The price band for the BikeWo GreenTech IPO is set between ₹59 ₹62 per share. Retail investors can apply with a minimum lot size of 2,000 shares, requiring a minimum investment of ₹1,24,000. High-net-worth individuals (HNIs) must apply for at least 2 lots, consisting of 4,000 shares, requiring a minimum investment of ₹2,48,000. This IPO offers an opportunity to invest in a growing player in the green technology sector.
Industry Outlook:
- The electric 2-wheeler industry accounted for 55% of total EV sales in FY2022, with 4.56 lakh units sold in H1 FY2023 alone.
- In H1 FY2023, high-speed E2W sales comprised over 65% of overall E2W sales, with Maharashtra leading at 53,043 units.
BikeWo GreenTech IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding the purchase of electric two-wheeler vehicles for selling and supplying the same to our new and existing dealers.
- Funding capital expenditure is proposed to be incurred towards setting up of 11 dealership stores in various states in India.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company.
- General corporate purposes.
About BikeWo GreenTech Limited
BikeWo GreenTech Limited, established in December 2006, is an Indian retailer specialising in electric two-wheelers. Initially engaged in the buying and selling of used four-wheelers from authorised dealers, the company shifted its focus in 2022 to capitalise on the emerging electric vehicle market in India. During the first quarter of FY2022, BikeWo GreenTech franchised its brand to 10 dealers in Andhra Pradesh and Telangana, marking its entry into the electric two-wheeler segment.
The company operates through a dealership model offering three types of partnerships: State Dealerships, Diamond Dealerships, and Platinum Dealerships. This strategy aims to build a robust dealership network across Tier II and Tier III cities, ensuring high visibility and easy accessibility for customers.
BikeWo GreenTech has established a brand presence in Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat, with plans to expand into Raipur, Indore, Delhi, and other major cities. Emphasising a cluster-focused expansion strategy, the company deepens its presence in existing regions before entering new markets. As of January 31, 2024, BikeWo GreenTech Limited employed 36 staff members.
Peer Details
BikeWo GreenTech Limited operates in a unique business segment with no directly comparable listed companies in India.
How to Check the Allotment Status of the BikeWo GreenTech IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for BikeWo GreenTech IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the BikeWo GreenTech IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of BikeWo GreenTech IPO
- Registered office: Plot No. 502B, Amara Jyothi, Road No. 31, Jubilee Hills, Hyderabad - 500 033, Telangana, India
- Phone: +91 812 100 7731
- E-mail: info@bikewo.in
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 2,498.78 | 2,056.85 |
| Profit After Tax (PAT) (in ₹ lakh) | 167.21 | 9.80 |
| Current Ratio (x) | 1.49 | 9.67 |
| Net Worth (in ₹ lakh) | 1,676.70 | 723.14 |
| Total Borrowings (in ₹ lakh) | 1,419.35 | 1,239.26 |
| Return on Equity (%) | 13.94% | 1.36% |
| Return on Capital Employed (RoCE) (%) | 10.87% | 2.64% |
| Earnings Per Share (in ₹) | 2.51 | 0.19 |
Know before investing
Strengths
7EV dealership network for major OEMs across 5 states.
Sold 10 franchises in Andhra Pradesh and Telangana in FY2022.
Exclusive marketing partner agreement with Enigma Automobiles in 2024.
Established dealer network with 3 dealership categories: State, Diamond, and Platinum.
Growing after-sales services with dedicated workshops and area managers.
Expanding presence with plans to open 11 new dealerships.
Risks
7Expansion into new geographies without proven operational history.
Reliance on EV sales contributed 42.17% revenue in FY2024.
High dependence on dealers for significant revenue generation.
Limited brand partnerships and losing brands affect revenue significantly.
Dependence on external suppliers may affect business profitability.
Competition from local and national EV retailers is increasing.
Majority of revenue is concentrated from Telangana and Andhra Pradesh stores.
