Tunwal E-Motors share price makes a positive debut, stock opens with 8.5% premium at ₹64 apiece on NSE SME

Tunwal E-Motors share price made a positive debut on NSE SME today. Tunwal E-Motors share price today opened at ₹64, which is 8.5% higher than the issue price of ₹59.

Monday, July 15, marked the opening of the Tunwal E-Motors IPO subscription period, which closed Thursday, July 18. Tunwal E-Motors' initial public offering (IPO) had a face value of ₹2 per share and was priced at ₹59. A minimum of 2000 shares, as well as multiples of them, wereavailable for bidding. Tunwal E-Motors IPO subscription status was 12.31 times on the last bidding date.

As one of the emerging companies in the electric vehicle (EV) 2-wheeler sector, it is committed to encouraging innovation in the EV two-wheeler manufacturing process. Over the years, the company has expanded its presence to 19 states, over 225 dealers countrywide, over 23 models (including seven two-wheeler versions), and achieved a 346% compound annual growth rate in revenue. Previously, its promoter, Jhumarmal Pannaram Tunwal, operated in a similar business, making and marketing electric vehicles under the name Tunwal Electrionics, a private corporation.

The company's listed peers are Wardwizard Innovations & Mobility Ltd (P/E of 117.96) and TVS Motors Ltd (P/E of 66.33).

In fiscal year 24, the company generated ₹10,460.07 lakhs in sales, ₹1,783.15 lakhs in EBITDA, and ₹1,181.17 lakhs in PAT.

Tunwal E-Motors IPO details

Tunwal E-Motors' IPO consists of a fresh issue of equity shares worth ₹81.72 crore and an Offer For Sale (OFS) of 5,750,000 equity shares worth ₹33.93 crore by existing shareholders at the high end of the price range. This is equivalent to a public offering of ₹115.64 crore.

The company expects to use the net proceeds of the offering to fund its working capital needs, research and development, inorganic expansion, and general corporate expenditures.

Horizon Management Private Ltd is the issue's lead manager. Skyline Financial Services Private Ltd is the registrar to the Issue.

Tunwal E-Motors IPO GMP today

Tunwal E-Motors IPO GMP is +5. This indicates Tunwal E-Motors share price were trading at a premium of ₹5 in the grey market, according to investorgain.com.

Given the top end of the IPO price band and the existing grey market premium, the expected listing price of Tunwal E-Motors shares was ₹64 per, 8.47% more than the IPO price of ₹59.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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