DBT Bureau
Bengaluru, 30 July
IPO Details:
Date: 2nd August – 6th August, 2024
Price Band: Rs 72 – Rs 76
Total Size of the Issue: Rs 6,150 crore
Fresh Issue: Rs 5,500 crore
OFS: Rs 650 crore
How the IPO proceeds will be utilized?
-️ The company aims to utilize around Rs 1,2oo crore towards the expansion of its Gigafactory capacity. Currently, the facility is in the testing phase of 1.5GwH, by April 2025. It aims to commission phase-2 with a capacity of 5GwH and further scale it up to 20GwH capacity in the next few years.
-️ As a part of its consistent development of products, it will be investing Rs 1,600 crore towards Research and Development.
– It will utilize Rs 800 crore towards debt repayment and Rs 350 crore towards organic business expansion mainly for its scooters’ business.
Operations & Margin outlook:
- As battery accounts for 30-40% of its material cost, it is in the process of developing its own battery cell which it aims to integrate in its scooters by FY26.
- With the integration of its own battery cells, it will focus on improving the margin profile along with operating leverage.
- Currently, the penetration of EV scooters in scooters stands at ~15% which it believes can increase up to 35-40% by FY30.
- It foresees healthy addressable for its products in regions like Asia, LATAM, and Africa which it could look to cater to in the long term.
(Source: Prabhudas Lilladher’s report)
