About the Company:
BikeWo Green Tech Ltd is a electric two wheeler retailer in India. Company’s electric vehicle business focuses on capturing the opportunity arising out of electrification of mobility in India by creating a multi-brand channel for EV two wheelers.
Company’s electric vehicle business focuses on capturing the opportunity arising out of electrification of mobility in India by creating a multi-brand channel for EV two wheelers by offering franchise under our brand in the Tier – I, Tier-II and Tier-III cities.
Company’s business model focuses on creating a dealership chain across Tier-II and Tier-III cities for setting up retail spaces which ensures high visibility and easy accessibility to customers.
Company focusses on deepening presence in the regions we operate in before venturing into new markets which has led us to establish brand presence in Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra and Gujarat markets.
Company plans to continue to deepen the store network in Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra and Gujarat; and also gradually plan to expand our network in Rajasthan, Kerala, Karnataka and West Bengal in pursuing our defined cluster-focused expansion strategy.
Company’s History:
Company commenced business operations in 2016 and revenue from operations have been steady since then.
Company since its incorporation had been engaged in the business of buying and selling of used four wheelers from authorised dealers of reputed automobile brands (“New Car Dealers”).
As part of pre-owned vehicle sale business, company procures used cars from New Car Dealers, who are approached by prospective customers, who wish to sell or exchange their existing vehicles for a new vehicle.
Post procuring used cars through such channels, company further display them for sale at various sites/ park and sell outlets of our designated used car dealers.
Company acts as an intermediate channel between the New Car Dealers and our designated park and sell used car lots, by supplying the used cars for sale and earning a margin during the sale of such cars.
Company has created a small network which undertakes every element of automobile buying from searching for a vehicle, creating buying requirements, price discovery, booking, certification to purchase and financing and doorstep delivery.
In the year 2022, with the advent of electrical vehicles in India, in order to capitalise the opportunities and potential offered by the industry segment, company diversified the business operations by venturing into marketing and selling of electric vehicles
Types of Electric Vehicles Sold by the Company:
Company’s Electric Vehicle Business:
With the kind of quality of service and efficiency, the Company is managing and operating the EV retail business have enabled us to maintain business relationships with our brand partners.
Company is currently associated with many OEMs most of whom are reputed brands and has a long-standing relationship with a certain number of brands which operate in product categories such as scooters, motorcycles, delivery two wheelers and electric bicycles.
Company believes that its core competencies lie in efficient inventory management which complements our logistics network.
In order to manage and track the inventory, Company periodically monitors the stock levels at central warehouse located at Hyderabad.
Company’s warehouse enables us to maintain optimal levels of inventory and ensures smooth functioning of dealership models and retail stores. We have a long-term relationship with various major brands, supplying two wheeler EVs.
How does the Company Procures Electric Vehicles?
Company purchases the Electric Vehicles directly from the Original Equipment Manufacturers (OEMs) on either advance payment terms or cash on delivery terms, which puts Company on a strong platform that enables better price and delivery terms.
Company’s procurement function is centralized at our central warehouse in Hyderabad, where the market demand for various products and customer responses to the new products launched by brands is closely monitored.
Based on a critical analysis of the customers, Company places orders for various products from time to time.
Company’s sales and inventory levels are captured in the dealer management software, which assists the management’s decisions on the procurement planning.
Company has tie ups with renowned OEMs, some of which have been provided below:
Warranty & Financing Options provided by the Company:
In order to make the products affordable and to expand the market reach, Company offers a number of financing solutions to customers.
Company’s dealers have entered into arrangements with financing partners which allows them to offer financing solutions in the form of low cost or zero cost EMIs to their customers. Further, all OEMs give 3 years warranty on Battery & 6 months to 2 years on other parts.
For this basic warranty given by the OEMs, Company acts as a facilitator. Company also provides an extended warranty to its customers, in addition to the warranty provided by the OEMs, at an affordable cost.
Company’s Business Segments:
- Pre-Owned Vehicle Sales.
- Sale of EV Vehicles.
Company’s Revenue Breakup from Business Segments: (in Lakhs)
Company operates the business activities through dealership models. Company offers three types of dealerships to dealers:
- State Dealership.
- Diamond Dealership.
- Platinum Dealership.
State Dealership: A state dealer engaged by our Company oversees the distribution, marketing and selling of our products in a particular state. A state dealer also supervises the work of subordinate diamond dealers, thereby acting as a single point of contact for our Company for a particular state.
As part of company’s state dealership model, dealers are required to invest an amount of around Rs.100-Rs.200 Lakhs. The Size of showroom along with the Service Centre is between 1,000-1,500 sft. In addition to the showroom, they are also required to maintain a stockyard for stocking around 200 vehicles.
(Franchise Fee) In consideration for appointment as the state dealer, a non-refundable franchise fee of ₹ 15.00 lakhs exclusive of all taxes is required to be paid by the state dealer to our Company.
Diamond Dealership: A diamond dealer is appointed for a specific district or a territory, generally ranging between 80 k.m. to 100 k.m. and is generally a person residing in that territory. A diamond dealer is responsible for supplying the adequate stock to the platinum dealers in his territory of operation, i.e., within a range of 80 k.m. to 100 k.m.
A diamond dealer is also responsible for appointing new dealers in his territory, for which he is entitled to a pecuniary commission, in addition to the 2% commission payable to such dealer for undertaking sale of our products.
(Franchise Fee) In consideration for appointment as a diamond dealer, a non-refundable franchise fee of ₹ 4.25 lakhs exclusive of all taxes is required to be paid by the diamond dealer to our Company.
Platinum Dealership: A platinum dealer is appointed for a specific territory, generally ranging between 5 k.m. to 10 k.m. and is generally a person residing in that territory.
(Franchise Fee) In consideration for appointment as a platinum dealer, a non-refundable franchise fee of ₹ 3.25 lakhs exclusive of all taxes is required to be paid by the platinum dealer to our Company.
Management Team:
- Katepalli Manideep (Designation: Chairman and Managing Director)
- Rama Mohan Thammineni (Designation: Whole-time Director)
Objectives of the Issue:
Offer For Sale: (Will be Updated)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding purchase of electric two wheeler vehicles for selling and supplying the same to our new and existing dealers | 6.0 cr |
| Funding capital expenditure proposed to be incurred towards setting up of eleven dealership stores in various states in India | 6.23 cr |
| Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company | 3.5 cr |
Company’s Strengths:
- Leading EV dealership for major OEMs with a strong focus on high growth segments.
- Dealership network and presence across various states.
- Growing presence in after-sales segment leading predictable growth in revenues and superior margins.
- Experienced Promoter and professional management team with technical expertise.
Positives for the Company:
Expand reach across select geographies and deepen the footprint in our existing markets.
- Company intends to open stores and build store network in Raipur, Indore, Delhi, Chandigarh, Lucknow, Prayagraj, Patna, Bhubaneshwar, Nagpur, Bangalore and Trivandrum.
- Company is at various stages of negotiations to enter into arrangements for locking such retail property for future requirements to open stores.
- Increasing company’s penetration in existing cities with a greater number of stores will enable us to penetrate into new catchment areas within these cities and optimize our infrastructure.
Penetration into domestic markets.
- Company is looking forward to further penetrate into markets and plans to continue to deepen our store network in Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra and Gujarat; and also gradually plan to expand our network in Rajasthan, Kerala, Karnataka and West Bengal in pursuing our defined cluster-focused expansion strategy.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 22.72 | 13.80 | 20.56 | 18.00 |
| Net Profit | 0.47 | 0.15 | 0.098 | 1.30 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.19 | TBA | 1.35% | 35.44 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| BikeWo Green Tech Ltd is positioning itself as a premier electric two-wheeler retailer in India, capitalizing on the burgeoning trend of electrification in the country’s mobility sector. With a strategic focus on establishing a multi-brand channel for EV two-wheelers, the company has secured partnerships with renowned electric vehicle manufacturers.
Expanding its footprint, BikeWo plans to establish stores across key cities including Raipur, Indore, Delhi, Chandigarh, Lucknow, Prayagraj, Patna, Bhubaneshwar, Nagpur, Bangalore, and Trivandrum. Negotiations are underway to secure retail properties in these locations, ensuring readiness for future store openings. As the automotive landscape shifts towards electric vehicles, BikeWo’s diverse brand offerings under one roof provide customers with convenience and choice, simplifying the decision-making process. This unique retail model positions the company for success in a market poised for significant growth. Investing in BikeWo’s IPO presents an opportunity to align with a forward-thinking player in India’s electric mobility revolution, poised to capitalize on the accelerating adoption of electric vehicles in the years ahead. |
| Company Contact Info: |
|---|
| BikeWo Green Tech Ltd Plot No. 502B, Amara Jyothi, Road No. 31, Jubilee Hills, Hyderabad – 500 033, Telangana, India. Telephone: +91 812 100 7731; E-mail: info@bikewo.in Website: www.bikewo.in |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India Telephone: +91 226 263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| Khandwala Securities Limited Vikas Building, Ground Floor, Green Street, Fort, Mumbai – 400 023, Maharashtra, India. Telephone : +91 224 076 7373; Facsimile: +91 224 076 7377 / 78; Email: ipo@kslindia.com, rinav@kslindia.com Website: www.kslindia.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
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Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
