IPO Details
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About Raft Motors Ltd IPO
The IPO of Raft Motors Ltd comprises a fresh issue and an offer for sale. The fresh issue is up to 53,00,000 equity shares while the offer for sale is up to 4,10,000 equity shares. It’s a 100% fixed price issue.
Objectives of Raft Motors Ltd IPO
- Funding the capital expenditure towards land with proposed structure of 2,00,000 sq.ft. of shed area and 15,000 sq ft. for admin building for setting up a new manufacturing unit at Howrah, West Bengal.
- Funding the capital expenditure toward plant and machineries for setting up a of new manufacturing unit at Howrah, West Bengal
- Prepayment or repayment of all or a portion of certain unsecured loans availed by the company
- Funding working capital requirements of the company
- General corporate purposes
Raft Motors Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 53,00,000 equity shares |
Offer for Sale | Up to 4,10,000 equity shares |
EPS in ₹ for FY 24 | 7.06 |
Industry Outlook
India is rapidly establishing itself as one of the fastest-growing markets for Electric Two-Wheelers (E2Ws). The two-wheeler segment dominates the Indian automobile industry, accounting for over 70% of all registered vehicles.
The adoption of Electric Two-Wheelers (E2Ws) in India has experienced remarkable growth. Between FY 2021 and FY 2022, E2W penetration increased over six fold, followed by a two-fold rise from FY 2022 to FY 2023, reaching approximately 4.5% of total two-wheeler registrations as recorded on the Vahan Dashboard (MoRTH) in FY 2023.
With E2W penetration in India crossing 5% and a strong foundation set by advancements in technology, manufacturing, and policy incentives, the country is poised for rapid growth in E2W adoption over the next five years, mirroring the explosive growth seen in other mature EV markets.
Company Information
Raft Motors Ltd manufactures a comprehensive range of electric two-wheelers. Committed to addressing the urgent need for electric mobility solutions in India, Raft Motors focuses on delivering user friendly, technologically advanced and affordable electric two wheelers.
Its mission extends beyond product excellence, aiming to contribute to a cleaner and more sustainable future for the nation and also develop further electric based mobility solutions.
Raft Motors Ltd Strengths
Product Portfolio with Strong Market Response
With 10 models developed and available for distribution, Raft Motor sets itself apart in the electric vehicle (EV) market. The sales of its 3 models are growing rapidly. Its focus on high-quality and innovative designs in electric two-wheelers has led to varied and constant addition to the product portfolio, positioning the company as an emerging company in the mobility industry.
Quality Assurance and Quality Control of Its Products
At the core of its operations is an unwavering commitment to quality assurance and control. It ensures that its products undergo quality checks at various stages before delivery to the customers, and it has established dedicated quality assurance and control teams to ensure each electric two-wheeler meets defined quality parameters. Led by experienced technicians, production teams ensure that its electric two-wheelers undergo meticulous inspections to prevent rejections and maintain the highest quality standard.
Post-Sale Service Support System
Our post service network comprises Service through dealerships, Service at Deployment centre of channel partners, service at experience centre for annual maintenance and roadside assistance. The turnaround time for routine service is generally 4 hours. For small adjustments and check- ups, it ensures immediate service.
In case parts replacement is required, the turnaround time is 2 to 5 hours depending on the nature of replacements and for roadside assistance it's 1 to 2 hours depending upon location of the spot.
Risks of Raft Motors Ltd IPO
- Dependence on Timely and Scalable Development of New EV Models
The company’s growth depends on its ability to successfully develop, introduce, manufacture, market and deliver new variants of EV scooters, EV motorcycles, etc., in the medium-to-long term. This development of new EVs requires significant capital expenditure, including investments in engineers and other human capital, optimisation of its supply chain, R&D costs and other intangibles, which may result in cost overruns, particularly given that they have no prior experience manufacturing such EVs.
- Reliance on Few Customers for Revenues
The company is dependent upon its relationship with its channel partners and dealers. As part of its business model, the company has institutional sales through channel partners as well as direct sale to individuals through its distributor/dealer network. The company’s business operations are highly dependent on sales through channel partners. Its marketing team gets its products tested and approved with various corporates which are in the last mile delivery businesses.
In case of loss of any of its channel partners through whom it caters to last mile delivery businesses and/or distributor/dealer may adversely affect its sales and consequently on its business and results of operations.
- Dependence on Chinese Imports
The company imports a part of the CKD Materials from China from various suppliers, therefore are dependent upon smooth trade relations between India and China. In view of the ongoing clashes between both the countries, if any of the countries decide to restrict or all together halt the trade, its products would be adversely impacted.
Further, in the event any policy is adopted which increases the import duty on the goods purchased from China, its raw materials may become costlier and less economic for us.
All Financial Information about Raft Motors
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
Raft Motors Ltd | 43.0429 | 7.06 | 22.86 | 23.07 |
Ola Electric Mobility Ltd | 81.57 | 4.62 | 21.92% | 11.55 |
Wardwizard Innovations & Mobility Ltd | 317.31 | 57.23 | 39.37% | 3.90 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: MAS Services Ltd
- Book Running Lead Manager: Horizon Management Pvt Ltd
Business Model
Operating in the electric vehicle (EV) manufacturing sector, Raft Motors Ltd manufactures a comprehensive range of electric two-wheelers. The company has both B2B and B2C business models. Its electric two-wheeler models are:
- Warrior Electric
- Soldier Electric
- Jispa Electric
- Nubra Electric
- Indus Electric
- Jispa Nx
- Teesta Electric
- Indrajeet
- Magnetic Electric
- Zanskar
The company focuses on delivering user friendly, technologically advanced and affordable electric two wheelers.
Company Growth Trajectory
The EBITDA margin of Raft Motors Ltd grew from 5.87% in FY 22 to 61.63% in FY 24. Its PAT margin rose from 4.14% in FY 22 to 37.26% in FY 24. The company has been able to forge agreements with 9 new dealers in West Bengal, Madhya Pradesh and other states and, going forward, it intends to partner with 100 plus dealers PAN India. An experienced management team coupled with a strong marketing and distribution network has helped the company grow over the years.
Market Position
Raft Motor’s comprehensive business model and commitment to excellence position it as an emerging player in India’s electric vehicle landscape, poised for sustained growth and success. The company has set up an exclusive showroom with experience centres in Kolkata, West Bengal and Satna, Madhya Pradesh. The company has a diversified marketing network that serves as a robust channel for the promotion and sale of its products.
With former Indian Cricket Team captain and BCCI’s ex-president Sourav Ganguly as its brand ambassador, channel partners selling its electric two wheelers to last mile delivery businesses like Zomato, Swiggy, Amazon, Blue Dart and Flipkart, to name a few, and exclusive showroom with experience centres solidifies the market presence of Raft Motors Ltd.
Raft Motors Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Revenue (in ₹ crores) | 2.0773 | 7.8520 | 11.7469 |
Profit Before Tax (in ₹ crores) | 0.9439 | 0.4685 | 0.6512 |
Profit After Tax (in ₹ crores) | 0.7135 | 0.3468 | 0.4866 |
EPS in ₹ | 7.06 | 4.62 | 57.23 |
Raft Motors Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 0.9439 | 0.4685 | 0.6512 |
Net Cash from Operating Activities (in ₹ crores) | (0.6303) | (0.0827) | (1.2731) |
Net Cash from Investing Activities (in ₹ crores) | NA | (0.0303) | (0.0630) |
Net Cash from Financing Activities (in ₹ crores) | 0.7026 | 0.1389 | 1.3541 |
Cash and Cash Equivalents - Closing Balance (in ₹ crores) | 0.1281 | 0.0558 | 0.0299 |
How to Check Allotment Status of Raft Motors Ltd IPO?
1. Visit the Registrar’s Website
- Visit the website of MAS Services Ltd
- Click on ‘IPO Allotment Status’
- Choose the IPO name and search either using your PAN no or DP_ID/Client ID
- Click on ‘Search’ to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Raft Motors Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Raft Motors IPO FAQs
What is the Raft Motors Ltd IPO?
The Raft Motors Ltd IPO consists of a fresh issue and an offer for sale. There are up to 57,10,000 equity shares of ₹10 each.
When will the IPO of Raft Motors Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about the IPO of Raft Motors Ltd?
You can read more about the IPO of Raft Motors Ltd from the company’s draft red herring prospectus here.
