Victory Electric Vehicles International Limited, a manufacturer of electric vehicles, is set to open its Initial Public Offering (IPO) subscription from May 20 to May 23, 2025. The company specializes in producing a wide range of electric vehicles including E-rickshaws, E-Cargo/Loader E-Rickshaws, and Scooters. Its product portfolio further extends to customized electric three-wheelers, designed for specific commercial uses like Food Three Wheelers and Ice Cream Three Wheelers, addressing niche demands in the electric mobility market.

This IPO is a Fixed Price Issue amounting to ₹ 40.66 Crores and comprises entirely a fresh issue of 56.47 lakh shares. The IPO share price is fixed at ₹ 72 per equity share, with a lot size of 1,600 shares. For retail investors, the minimum investment amounts to ₹ 1,15,200, while High-Net-Worth Individuals (HNIs) must apply for a minimum of two lots, costing ₹ 2,30,400. Upon subscription, the allotment is expected on or about May 27, 2025, with the tentative listing date on the NSE SME platform around May 28, 2025. This listing will mark a significant milestone in the company’s journey as it aims to strengthen its market presence in the rapidly growing electric vehicle sector.

The company is led by Mr. Sanjay Kumar Popli, Managing Director, who brings in three years of marketing and communication expertise alongside Seema, an operations and administration head with a combined background in partnership business and academics. Their leadership positions the company well to navigate the competitive electric vehicle industry while catering to evolving customer needs.

From a financial standpoint, Victory Electric Vehicles International Limited shows steady growth. Revenues for the period ending December 31, 2024, stood at ₹ 3,967.68 lakh, while fiscal years 2024, 2023, and 2022 recorded ₹ 4,876.36 lakh, ₹ 5,213.63 lakh, and ₹ 4,813.55 lakh respectively. EBITDA demonstrated strong improvement, with ₹ 623.24 lakh for the recent period and ₹ 735.04 lakh for FY24. Profit After Tax (PAT) also reflects steady growth, standing at ₹ 389.12 lakh for the recent period, and ₹ 489.22 lakh for FY24, underscoring operational efficiency and profitability.

Key valuation metrics reveal the company’s pre-issue EPS (Earnings Per Share) at ₹ 18.95 and post-issue EPS at ₹ 2.30 for FY24. The pre-issue Price to Earnings (P/E) ratio is 3.80x, rising to a post-issue P/E ratio of 31.36x, which is slightly above the industry average P/E of 24x. This elevated post-issue P/E indicates that the IPO pricing factors in future growth potential. The company’s return ratios are strong, with a Return on Capital Employed (ROCE) of 44.78%, and both Return on Equity (ROE) and Return on Net Worth (RoNW) standing at 70.19% for FY24, reflecting efficient capital management and value creation for shareholders.

Regarding market sentiment, the Grey Market Premium (GMP) is reported at ₹ 0, suggesting that no premium or discount is expected on listing day. This implies investors should not anticipate significant listing gains. It’s important to note that GMPs operate in an unorganized market and depend heavily on demand-supply dynamics outside official channels; hence, they should be viewed for informational purposes only.

The funds raised through this IPO will be utilized primarily for capital expenditure (₹ 500 lakh), working capital requirements (₹ 2,200 lakh), and general corporate expenses (₹ 754.29 lakh). This allocation reflects the company’s strategy to expand production capacity, meet operational demands, and maintain corporate flexibility in a competitive industry.

The IPO is managed by Corpwis Advisors Private Limited as the book running lead manager, with Maashitla Securities Private Limited acting as the registrar, and Alacrity Securities Limited appointed as the Market Maker, ensuring smooth subscription and post-listing market operations.

Investors interested in subscribing to the Victory Electric Vehicles International IPO can monitor the allotment status on or after May 27, 2025, by visiting the registrar’s website, where details can be accessed using application number, PAN, or DP Client ID.

In summary, Victory Electric Vehicles International Limited offers investors exposure to the growing electric vehicle segment, especially in the customized electric three-wheeler space. The IPO’s fixed price and zero GMP indicate a fully priced issue with limited upside on listing day. While the company’s steady financial growth and strong return ratios are positive, the elevated post-issue P/E ratio suggests investors should carefully evaluate growth prospects against valuation. Given these factors, the IPO may appeal to investors with a long-term outlook on electric mobility but may not suit those seeking immediate listing gains.

This IPO is a significant opportunity to invest in an emerging player within India’s electric vehicle industry that offers innovative products tailored to diverse commercial uses. The scheduled subscription period from May 20 to May 23, 2025, followed by allotment and listing in late May, sets the stage for Victory Electric Vehicles International Limited to advance its market footprint in the evolving green mobility landscape.

The Upcoming IPOs in this week and coming weeks are Blue Water Logistics, Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Current active IPO are Victory Electric Vehicles International, Borana Weaves.

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