Schedule of Tunwal E-Motors
| Issue open date | 15 Jul 2024 |
| Issue close date | 18 Jul 2024 |
| UPI mandate deadline | 18 Jul 2024 (5 PM) |
| Allotment finalization | 19 Jul 2024 |
| Refund initiation | 22 Jul 2024 |
| Share credit | 22 Jul 2024 |
| Listing date | 23 Jul 2024 |
| Mandate end date | 02 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 19 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 19 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Tunwal E-Motors
Incorporated in 2018, Tunwal E-Motors is rapidly growing in the electric two-wheeler market, offering 23 models with various battery types and ranges. Notable variants include Mini Sports 63 – 48V, Mini Lithino, Storm Zx, Lithino Li, TZ, ROMA, and ALFA PRO. Over 75% of their sales are low-speed bikes that require no registration, while high-speed models account for 25% and need registration. Six key products—three each in low and high-speed categories—constitute 91% of current sales.
Their facility in Palsana, Rajasthan, can annually produce 41,000 units with space for expansion. Tunwal E-Motors has achieved an impressive 346% CAGR in revenue and established a presence in 19 states with a dealership network of 256 dealers. Dealers are mandated to provide comprehensive after-sales services, including routine maintenance, battery management, inspections, diagnostics, safety checks, and component replacements.
Financials of Tunwal E-Motors
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹115.64 crores |
| Fresh issue | ₹81.72 crores |
| Offer for sale | ₹33.93 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 35 (53.51%) |
| R&D | 5 (7.64%) |
| Pursuing inorganic growth | 5 (7.64%) |
| General corporate purposes | 20.41 (31.21%) |
*All figures except EPS are in ₹ crores
Strengths
- Wide product portfolio: With over 23 models including 7 variants developed and available for distribution, The company has positioned itself as an emerging player in the industry.
- Consistent financial performance: The company has demonstrated financial performance with a consistent track record of profitability, even amidst the challenges posed by the COVID-19 pandemic.
Risks
- Dependence on international suppliers: The Company relies on a few international suppliers for the purchase of raw materials. Out of the top ten suppliers, over 80% contribution comes from a few international suppliers. Losing any of these major suppliers could negatively impact revenue and profitability.
- Potential pricing pressures: As the company operates in a capital-intensive sector with requirements to maintain a large inventory base, Pricing pressure from the customers may adversely affect the gross margin and profitability. The inability to increase the prices could adversely impact revenue and profitability.
- Highly competitive and fast-evolving automotive market: The Indian automotive market is highly competitive with many established and new-age EV companies in the foray. Developments in alternative technologies in ICE vehicles such as advanced diesel, hydrogen, ethanol, fuel cells, or CNG, or improvements in the fuel economy or other features of ICE or the cost of gasoline may materially and adversely affect the business and prospects.
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 20, 2024, on the registrar’s website and the NSE website.