NSE SME Tunwal E-Motors makes lackluster debut

Shares of Tunwal E-Motors were trading at Rs 60.80 on the NSE, a premium of 3.05% compared with the issue price of Rs 59.

The scrip was listed at Rs 64, a premium of 8.47% over the initial public offer (IPO) price. The stock is currently frozen in its lower limit of 5% over its listing price.

The counter hit a high of Rs 64 and a low of Rs 60.80. About 39.92 lakh shares of the company changed hands at the counter.

Tunwal E-Motors' IPO was subscribed 11.57 times. The issue opened for bidding on 15 July 2024 and it closed on 18 July 2024. The price of the IPO was fixed at Rs 59 per share.

The issue size comprised of fresh issue 1,38,50,000 and offer for sale 57,50,000 by existing shareholders. The promoter and promoter group shareholding diluted to 62.34% from 97.04% pre-IPO.

The company intends to utilize the net proceeds for funding working capital requirements of the company, research & development, pursuing inorganic growth and for general corporate expenses.

Tunwal E-Motors is one of the emerging companies in the EV 2-wheeler sector. It has specialized in the design, development, manufacturing, and distribution of high-quality electric two-wheelers. As on 31 March, the company has 64 permanent employees.

The company recorded revenue from operations of Rs 104.60 crore and net profit of Rs 11.81 crore for the period as on 31 March 2024.

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