The shares of RattanIndia Enterprises Ltd zoomed 18.56 percent on Monday’s early trades to reach an intraday high of ₹ 50.45 apiece after the company announced that it has acquired a 100 percent stake in Revolt Intellicorp Private Limited (“Revolt”) which is the market leader in making electric motorcycles. The company’s shares closed at ₹ 48.85 apiece, up 14.81 percent.
RattanIndia Enterprises is a diversified commercial services company with a presence in a wide range of business activities including software, legal, financial, human resources, and consultancy, to supply manpower (skilled, semi-skilled and unskilled), software designing and development, design development, and implementation of payment systems and gateways and so on.
Revolt Motors is the highest-selling electric bike in the country with its manufacturing facility in Manesar, Haryana. It has expanded its footprint pan-India with 30 dealerships spread across the country.
With this 100 percent acquisition of Revolt Motors, RattanIndia Enterprises seeks to significantly scale up Revolt’s growth and make it the largest EV two-wheeler company in the country. Revolt Motors is now a subsidiary of RattanIndia Enterprises.
“The country needs environmentally sustainable mobility solutions and Revolt will surely be a leader in this transformation. We are very excited and fully geared up to make Revolt the largest EV motorcycle company in the country,” said Anjali Rattan, Business Chairperson, RattanIndia Enterprises.
Revolt Motors’ flagship model RV400 has been witnessing a robust demand and is by far the most technologically advanced bike in the world. These AI-enabled electric motorcycles capture millions of data points per second over the air to deliver a great driving experience to the riders. Revolt bikes are also known for their superior build quality and have already completed over 20 crore km on Indian roads.
Currently, Electric Vehicles make up about 2 percent of the total automobile sales. However, the Indian government has set an ambitious target to increase the adoption of electric vehicles over the next decade, with a focus on two-wheelers vehicles.
According to Bain & Company’s projections released in December, sales in India are expected to rise between 40 percent and 45 percent by 2030.
RattanIndia Enterprises is a small-cap company with a market capitalization of ₹ 5,882 crores. It has a return on equity of 141.41% and an ideal debt-to-equity ratio of 1.00. Its shares were trading at a price-to-earnings ratio of 13.05, which is significantly higher than the industry average of 8.44, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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