Tunwal E-Motors, a rising star in the electric vehicle (EV) industry, launched its initial public offering (IPO) today, marking a significant step towards its growth ambitions. The IPO, open for subscription from July 15th to 18th, 2024, seeks to raise ₹115.64 crore and will be listed on the NSE SME platform.
Tunwal E-Motors, established in December 2018, has carved a niche for itself in the burgeoning Indian EV market. The company focuses on designing, developing, producing, and distributing high-performance electric two-wheelers. This IPO signifies their commitment to expanding their operations and capitalizing on the increasing demand for sustainable transportation solutions.
The public offering comprises a fresh issue of 13.85 million shares worth ₹81.72 crore and an offer for sale of 5.75 million shares aggregating to ₹33.93 crore. The issue price is fixed at ₹59 per share, with a minimum lot size of 2,000 shares.
Experts believe this IPO presents an attractive opportunity for investors keen on tapping into the potential of the Indian EV sector. The government’s push for electric mobility, coupled with rising fuel prices and growing environmental concerns, has significantly boosted the demand for EVs. Tunwal E-Motors, with its focus on innovation and quality, is well-positioned to benefit from this positive momentum.
The proceeds from the IPO will be strategically utilized to fuel the company’s growth initiatives. A significant portion will be directed towards enhancing operational capabilities, including investments in research and development to introduce new and advanced electric two-wheeler models. Additionally, the funds will be used to meet working capital requirements, pursue inorganic growth opportunities, and cover general corporate expenses.
Commenting on the IPO launch, a company spokesperson expressed optimism about the future. “We are thrilled to embark on this exciting journey through the IPO. The raised capital will empower us to accelerate our growth strategy, expand our product portfolio, and solidify our position as a leading player in the Indian EV landscape. We are confident that this IPO will not only benefit our investors but also contribute significantly to the nation’s transition towards a cleaner and more sustainable future.”
The allotment of shares is expected to be finalized on July 19th, 2024, with a tentative listing date on the NSE SME platform set for July 23rd, 2024. As Tunwal E-Motors speeds towards its public listing, all eyes are on this promising EV manufacturer poised to make a lasting impact on the Indian transportation sector.