• Fund utilization plan: From the ₹600 crore fresh issue, ₹190 crore will be used to repay part of the ₹400 crore outstanding debt, ₹200 crore for capital expenditure over the next three years, and ₹200 crore for general corporate purposes and M&A. The ₹400 crore offer-for-sale proceeds will be redeployed into other Munjal family businesses.
• Electric vehicle transition: Electric vehicles account for around 23% of two-wheeler revenue, and 70% to 80% of new projects across transmissions, electronic drive units, aviation, and ATVs are focused on EV and hybrid segments.
• Margin expansion drivers: EBITDA margins rose from 6% to over 10% despite 6% annual revenue growth, driven by a higher volume mix of powertrain and transmission products generating 20% to 22% EBITDA margins compared to 6% to 7% in the alloy and metallics business.
• Valuation and ROE: Management attributed the 8.6% ROE and 73 P/E multiple to upfront investments in new joint ventures and subsidiaries—including HYM, E-Sync, and STTP—which are expected to deliver financial returns over the next two to three years.