BikeWo GreenTech makes disappointing debut, lists at 27% discount but stock hits upper circuit after listing

Marking another disappointing trading debut by a small and medium enterprise (SME), shares of BikeWo GreenTech Ltd. were listed at an over 27% discount on the NSE Emerge platform on Friday, September 27.

The BikeWo GreenTech stock opened the session at ₹45 apiece, down 27.4% compared to its initial public offering (IPO) price of ₹62. However, within minutes of the opening of the trading session, the share price rose 5% to hit ₹47.25 levels on the NSE.

As the minimum bid quantity to apply for the BikeWo GreenTech IPO was 2,000 shares, bidders who were successfully allotted shares in the primary issue would have been sitting on listing losses of at least ₹34,000 (₹17 x 2,000) as soon as trading began in the stock on exchanges.

₹24.09-crore BikeWo GreenTech IPO was open for subscription from September 20 to September 24. The issue was subscribed almost 42 times during the three-day bidding period, with the company receiving bids for over 15.45 crore shares as against 36.9 lakh shares on offer.

The IPO had seen the highest participation from the retail segment, with the portion reserved for small retail investors being oversubscribed by 61 times.

The non-institutional investors’ (NIIs) quota was overbid by almost 22.5 times, while the qualified institutional buyers’ (QIBs) portion was overbooked by 43 times.

The BikeWo GreenTech IPO was a 100% book-built issue consisting entirely of fresh issuance of 38.86 lakh shares.

Price band of this IPO was fixed at ₹59 to ₹62 per share. The lot size, or the minimum bid quantity, for an application was 2,000 shares and in multiples of 2,000 thereafter.

BikeWo GreenTech had proposed using the net proceeds from the fresh issue to fund the purchase of electric two-wheeler vehicles for selling and supplying to its new and existing dealers. A portion of the funds was also proposed to be used to fund capital expenditures to be incurred to set up 11 dealership stores in various states in India. BikeWo GreenTech also planned to use the funds to prepay or repay all or a portion of certain outstanding borrowings availed by the company and for general corporate purposes.

Incorporated in December 2006, Bikewo GreenTech is India’s largest multi-brand electric two-wheeler retailer. The company offers its customers a 360-degree solution for all EV needs through a network of stores, dealer outlets, service centres, and charging points.

The company operates its business activities through dealership models. The brand is currently visible in Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, and Gujarat.

Going ahead, Bikewo GreenTech plans to open new stores in Raipur, Indore, Delhi, Chandigarh, Lucknow, Prayagraj, Patna, Bhubaneshwar, Nagpur, Bengaluru and Trivandrum.