BikeWo Greentech IPO: 42 times subscription on closing day

BikeWo GreenTech Limited witnessed a remarkable surge in demand for its IPO on the last day of bidding, Tuesday, September 24, 2024. The offer was significantly oversubscribed, reflecting strong interest from retail investors. The public offering was booked nearly 42 times the shares available, driven by the growing demand to invest in IPO opportunities.

Substantial oversubscription in multiple categories

Retail investors led the demand for BikeWo GreenTech IPO, subscribing 61.04 times more than the allotted shares. In comparison, the Non-Institutional Investors (NII) category recorded a 22.58 times oversubscription, while the Qualified Institutional Buyers (QIB) placed bids exceeding 43.03 times the available shares for their category. In total, bids for over 15.45 crore shares were placed against the 36.9 lakh shares on offer.

IPO size and pricing details

The ₹24.09 crore IPO included a fresh issue of 38.86 lakh shares. The price band for the shares was set between ₹59 and ₹62. For retail investors, the minimum investment lot size was set at 2000 shares, requiring an investment of ₹1,24,000. The BikeWo GreenTech IPO has captured the attention of various investor groups looking to invest in IPO offerings that promise substantial returns.

Key timelines: Share allotment and listing date

The IPO opened for bidding on Friday, September 20, and closed on Tuesday, September 24. The share allotment status is expected to be finalised by Wednesday, September 25, after which refunds will be issued to unsuccessful bidders on Thursday, September 26. Those who are successfully allotted shares will see them credited to their Demat accounts the same day. The shares will be listed on the NSE SME platform, Emerge on Friday, September 27.

Registrar and lead management

Bigshare Services Pvt Ltd has been appointed as the IPO registrar, with Khandwala Securities Limited acting as the book-running lead manager. After the trade, Broking will serve as the market maker for the issue.

Purpose of the IPO

BikeWo GreenTech intends to use the proceeds from the IPO to expand its business. Specifically, the funds will be used to purchase electric two-wheelers for new and existing dealerships, set up eleven new dealership stores across India, and repay outstanding borrowings. The company also plans to use a portion of the funds for general corporate purposes, further strengthening its market position.

Key takeaways

• The BikeWo GreenTech IPO was oversubscribed nearly 42 times.
• Retail investor demand drove the IPO, with a subscription rate of 61.04 times.
• The IPO price was set between ₹59 and ₹62, with a minimum investment of ₹1,24,000.
• Share allotment is expected by September 25, with a listing on September 27.

BikeWo GreenTech's strong IPO response highlights the growing interest in electric vehicle companies, making it an attractive opportunity to invest in IPO offerings in India.