This indicated a likely listing premium of 11%, compared with an issue price of INR 69 at the upper end.
However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
The company intends to utilise the total proceeds from the issue for funding purchase of electric two wheeler sales, capital expenditure proposed to be incurred towards setting up of eleven dealership stores in various states in India, repayment of debt and general corporate purposes.
BikeWo GreenTech since its incorporation has been engaged in the business of buying and selling used four wheelers from authorised dealers of reputed automobile brands.
As part of the pre-owned vehicle sale business, the 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.
The company acts as an intermediate channel between the new car dealers and its designated park and sell used car lots, by supplying the used cars for sale and earning a margin during the sale of such cars.
BikeWo 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, the company diversified its business operations by venturing into marketing and selling of electric vehicles and sold franchise of our brand to ten dealers during the first quarter of FY 2022.
The 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 1 and 2 cities.
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