Supertech EV

• Supertech EV is coming out with an initial public offering (IPO) of 32,49,600 equity shares in a price band Rs 87-92 per equity share.
• The issue will open on June 25, 2025 and will close on June 27, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.70 times of its face value on the lower side and 9.20 times on the higher side.
• Book running lead manager to the issue is Corporate Makers Capital.
• Compliance Officer for the issue is Pooja Jain.

Profile of the company

Supertech EV was incorporated to manufacture E-Rikshaw and to assemble 2 wheeler e-scooter including high speed and low speed products. With this acquisition, it has consolidated all operations in respect to the manufacturing of E-rickshaw and assembling of two wheelers scooters. To synergies the business activities of both the entities the company has acquired Supertech Inc effective from April 01, 2023. To manufacture the E-Rickshaw, the company procures the majority of raw materials including motors, controllers, brakes, differentials, axle, tyres etc. from the domestic suppliers and for 2 wheelers, since presently the company is engaged in assembling of two wheelers, therefore majority of products/ raw materials in CKD (Completely Knocked-Down) were imported products from China.

As a pioneering force in the Indian electric vehicle (EV) market. Since its inception, the company has been at the forefront of driving the electrification of mobility in India, leveraging its manufacturing facilities located in Haryana with an introduction of 12 models including 8 variants of EV 2 wheelers and 4 variants of E-Rickshaw, with a distributor base of 445 across India and presence in 19 states.

The company’s core focus lies in capitalizing on the burgeoning opportunities presented by the electrification of mobility, aligning its efforts with India's vision for a cleaner, greener future. With a diverse portfolio of electric vehicles, including E-Rickshaws and E-Scooters, the company caters to the evolving needs of the Indian automobile market. The company has rapidly evolved to become a significant player in the market, specializing in the design, development, manufacturing, and distribution of high-quality electric two-wheelers and E-rickshaws.

Proceed is being used for:

• Working capital requirement
• Repayment of portion of certain borrowings availed by the company
• General corporate purposes

Industry Overview

The growth of EV segment in India has been on an increasing trend. The domestic sales of ICE vehicles have witnessed decline over the past few years owing to slowdown in economy & consumption demand in FY20, impact of Covid-19 and economic degrowth in FY21. Moreover, slow rural demand, increase in vehicle prices, shortage of semi-conductors and increase in fuel prices are some of the factors which had adversely impacted the sales in FY22. However, in FY23 domestic automobile sales showed a growth of around 20% and in FY24, it further grew by 12.5% across segments which was supported by healthy demand in the urban areas, increasing replacement demand, growing demand for utility vehicles in the passenger vehicle segment, vehicle scrappage policy, and higher infrastructure spending. 

Electric two-wheelers and three-wheelers are good for micro-mobility services. Additionally, the growing interest in sustainable transportation alternatives among consumers, combined with the increasing availability of affordable E2Ws and E3Ws, is expected to drive further growth in the coming years. Advances in battery technology and the increasing availability and use of battery swapping stations have also contributed to the demand. Strategic agreements between manufacturers, service providers, and charging companies are building alliances which will accelerate the penetration of electric two-wheelers.

E2Ws and E3Ws could help realize these goals and play a pivotal role in India's green transition. Adequate investments must be made by the manufacturers and emphasis should be given to the Research and Development (R&D) so that innovative methods of E2W and E3W manufacture, battery disposal, battery use, and extraction of minerals required for EV batteries should be established to minimize any footprint left by EV adoption on the environment. The proactive measures taken by the Government, as well as the State Government to accelerate EV transition, development of local manufacturing of batteries, and increasing affordability of the vehicles, augur well for the sector which is anticipated to see long-term growth in the future. The overall outlook for E2W and E3W in India is positive, and the country is well on its way towards achieving a sustainable and eco-friendly transportation ecosystem. 

Pros and strengths

Range of product offering: The company’s commitment to innovation and excellence is reflected in its diverse range of electric vehicles, meticulously designed to meet the evolving needs of consumers across India. As of May 31, 2025, its product portfolio boasts an impressive array of 12 distinct offerings, comprising four variants of E-rickshaws and eight variants of E-scooters. Its E-rickshaw lineup includes the versatile E-LOADER, purpose-built for transporting goods, the GARBAGE model designed for waste management solutions, and the premium PILOT DLX and PILOT S DLX variants, offering enhanced comfort and performance for passengers. Each E-rickshaw variant embodies its commitment to durability, efficiency, and sustainability, catering to a wide range of commercial and personal transportation needs.

Strong client base: The company’s commitment to delivering exceptional electric vehicles extends beyond mere manufacturing excellence. It prides itself on fostering strong relationships with its clients, ensuring widespread accessibility to its innovative products across the nation. As of May 31, 2025, its extensive distribution network comprises 445 distributors strategically positioned throughout the country. These distributors serve as vital conduits, facilitating the seamless dissemination of its electric vehicles to diverse markets and regions. Through their dedicated efforts, it has been able to reach a wide audience, establishing a strong presence in the Indian automobile landscape.

Business model: At the heart of its business model at the company lies a commitment to flexibility, efficiency, and innovation. Its approach is grounded in two foundational pillars that underpin its operations and drive its success. First and foremost, it prides itself on its adaptable manufacturing capabilities. Within the walls of its manufacturing facility, it harnesses cutting-edge technology and expertise to produce the majority of parts and components for its E-rickshaw. This integrated approach allows it to maintain stringent quality control measures while ensuring timely production to meet market demands. However, recognizing the importance of specialization and efficiency, it also strategically leverage partnerships with trusted third-party vendors to outsource select components and attachments. This hybrid manufacturing model for electric two wheelers enable it to optimize resources, enhance agility, and uphold its commitment to delivering top-tier products to its customers.

Risks and concerns

Limited operating history: The company has generated only very limited revenues to date. Its ability to generate revenues on a more reliable and larger scale, and to achieve more profitability, will depend on its ability to execute its business plan, complete the development of its technology, and incorporate it into products that customers wish to buy, and to do so rapidly with appropriate financing if necessary. If it is unable to generate revenues of significant scale to cover its costs of doing business then it may not able to increase profitability, which could negatively impact the value of your investment in its securities.

Dependent on few numbers of suppliers for purchase of raw material: The company’s purchase of raw materials is dependent on its Top 10 Suppliers. It procured Rs 32,59,56.09 thousand of purchase, which is almost 51.27% to the Total Purchases as on March 31, 2025. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Stiff competition: It competes with several companies and entities, that include large infrastructure companies and organized and unorganized contractors in the infrastructure industry. Its competitors may have greater brand recognition, stronger manpower and greater financial resources and experience. It also faces competition from new entrants who may have more flexibility in responding to changing business and economic conditions. The basis of competition includes, among other things, pricing, innovation, perceived value and other criteria. It has experienced price competition in the past, and there can be no assurance that such price competition will not recur in the future.

Outlook

Supertech EV is engaged in the manufacturing of electric vehicles (EVs) in India. The company’s product portfolio includes 12 models, comprising 8 variants of electric two-wheelers and 4 variants of E-Rickshaws. The company has built a distribution network of 445 distributors and has a presence across 19 states in India. On the concern side, the company is dependent on few numbers of suppliers for purchase of raw material. Loss of any of this large suppliers may affect its business operations. Moreover, the company has a limited 2.10 years of operating history upon which investors may rely in evaluating its business and its prospects.

The company is coming out with a maiden IPO of 32,49,600 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 87-92 per equity share. The aggregate size of the offer is around Rs 28.27 crore to Rs 29.90 crore based on lower and upper price band respectively. On performance front, the company’s revenue of operations has increased significantly by 15.48% to Rs 7,50,966.68 thousand in Fiscal 2025 from Rs 6,50,287.48 thousand in Fiscal 2024. Moreover, the PAT of the company increased by 23.31% to Rs 61,935.77 thousand in FY 2025 from Rs 50,228.10 thousand in fiscal year 2024. 

Leveraging its market skills and relationships is a continuous process in its organization. The company enters into business arrangements with its distributors primarily through a competitive selection process. It has entrusted certain of its employees with the task of coordinating with different stakeholders in automobile and transportation industry across various states in India to identify opportunities. In addition, potential opportunities are brought to its attention through discussions with consultants and local contacts, existing clients and partners, as well as its existing distribution network. On receipt of any opportunity, it assesses the requirement and liaisons with the business development and operations team to prepare for onboarding new distributors.