BikeWo Green Tech Ltd

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:

  1. Pre-Owned Vehicle Sales.
  2. 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:

  1. State Dealership.
  2. Diamond Dealership.
  3. 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:

  1. Katepalli Manideep (Designation: Chairman and Managing Director)
  2. Rama Mohan Thammineni (Designation: Whole-time Director)

 

 

 

 

Objectives of the Issue:

Fresh Issue: (Rs.24 cr)

  • 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 FY 24
Revenue 22.72 13.80 20.56 25.14
Net Profit 0.47 0.15 0.098 1.67

 

 

 

IPO Details:

Details Info
Issue Opens on 20th September 2024
Issue Closes on 24th September 2024
Issue Price Rs.59 -62
Face Value Rs.10
Minimum Lot 2000 Shares
Minimum Investment Rs.1,24,000
Issue Constitutes 29.79%
Issue Size Rs.24 cr ($3 million)
Market Cap Rs.80 cr ($ 9.6 million)
Listing at NSE SME
Equity Shares Offered (Fresh) 38,86,000 (Rs.24 cr)
Equity Shares Prior to the Issue 91,57,,250
Equity Shares after the Issue 1,30,43,250

 

 

 

Important Dates:

Finalization of Basis of Allotment On or Before 25th Sept 2024
Initiation of Refunds On or Before 26th Sept 2024
Credit of Equity Shares: On or Before 26th Sept 2024
Listing Date: On or Before 27th Sept 2024

 

 

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
2.51 24.70 13.94% 18.31

Also Read:  Complete List of NSE/BSE Holidays List>>

 

 

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

 

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