Supertech EV Lists 20% Lower in Weak Debut Amid Sustained Selling Pressure

The electric vehicle manufacturing specialist, Supertech EV Limited, made a disappointing debut on the BSE SME platform on July 2, 2025. After closing its IPO bidding between June 25 - June 27, 2025, the company commenced trading with a sharp 20% discount to its issue price before sliding further to ₹69.92, reflecting severe market scepticism towards the electric vehicle sector despite India's EV adoption initiatives. This book-building IPO raised ₹29.90 crore with a modest subscription of 4.40 times, indicating restrained investor interest in the EV manufacturing sector as concerns over sustainability of recent financial improvements and competitive market dynamics overshadowed the company's distribution network expansion.

Supertech EV Listing Details

Supertech EV Limited launched its IPO at ₹92 per share with minimum investment of 1,200 shares costing ₹1,10,400. The IPO received moderate response with subscription of 4.40 times - retail segment leading at 7.06 times, NII at 2.09 times, and QIB at minimal 1.01 times, demonstrating mixed investor sentiment with particularly weak institutional participation. The share price listed at ₹73.60 on BSE SME, delivering a disappointing 20% discount from the issue price of ₹92, subsequently declining further to ₹69.92 representing additional 5% fall from listing price.

Listing Price: The Supertech EV share price opened at ₹73.60 on BSE SME on July 2, 2025, representing a discount of 20% from the issue price of ₹92, before sliding further to ₹69.92 as selling pressure intensified.

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First-Day Trading Performance Outlook

Supertech EV experienced weak debut performance with significant discount to issue price followed by further decline, reflecting investor concerns about the company's business sustainability and competitive positioning. The company, incorporated in 2022, manufactures electric vehicles including 8 variants of two-wheelers and 4 variants of e-rickshaws, operating through 445 distributors across 19 states with presence in Delhi, Punjab, Haryana, Gujarat, Maharashtra, and other key markets, employing 115 people as of June 2024.

Growth Drivers

Growth Drivers:

• Extensive Distribution Network: Comprehensive network of 445 distributors across 19 states providing wide market reach for electric vehicle sales
• Diversified Product Portfolio: 12 models comprising 8 electric two-wheeler variants and 4 e-rickshaw variants catering to different customer segments
• EV Market Opportunity: Positioned to benefit from India's electric vehicle adoption drive and government incentives for sustainable transportation
• Financial Growth: Revenue growth of 15% and PAT growth of 23% in FY25 demonstrating business expansion despite competitive pressures

Utilisation of IPO Proceeds

• Working Capital: ₹16.50 crore for working capital requirements to support manufacturing operations and business expansion
• Debt Repayment: ₹3.00 crore for repayment of certain borrowings to improve capital structure
• General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements
• Issue Expenses: Allocation for IPO-related expenses and regulatory compliance

Financial Performance of Supertech EV

Revenue: ₹75.19 crore for FY25, showing 15% growth from ₹65.14 crore in FY24, reflecting business expansion despite competitive challenges

Net Profit: ₹6.19 crore in FY25, demonstrating 23% growth from ₹5.02 crore in FY24, though sudden improvement patterns questioned by market response

Financial Metrics: Strong ROE of 36.66%, healthy ROCE of 30.86%, moderate debt-to-equity of 0.73, PAT margin of 8.25%, and EBITDA margin of 12.62%, though small scale operations limit growth potential

Supertech EV's catastrophic listing performance with a 20% discount followed by further decline reflects significant market concerns about the sustainability of recent financial improvements and competitive challenges in the electric vehicle manufacturing sector.