Victory Electric Vehicles International Limited is a manufacturer of electric vehicles, including E-rickshaws, E-Cargo/Loader E-Rickshaws, and scooters. Their product portfolio also includes customized E-Three Wheelers designed to cater to specific commercial needs such as Food Three Wheelers and Ice Cream Three Wheelers, differentiating them in the expanding electric vehicle market.

The company has announced a Fixed Price IPO amounting to ₹ 40.66 Crores, consisting entirely of a fresh issue of 56.47 Lakh shares. The subscription window opens on May 20, 2025, and closes on May 23, 2025. The allotment is expected on or about May 27, 2025, with the shares slated to list on the NSE SME platform on or about May 28, 2025.

The IPO price is fixed at ₹ 72 per equity share, making the company's market capitalization ₹ 153.41 Crores at the issue price. The IPO lot size is 1,600 shares, meaning retail investors must invest a minimum of ₹ 1,15,200, while High-Net-Worth Individuals (HNIs) must apply for at least 2 lots (3,200 shares), amounting to ₹ 2,30,400.

The book running lead manager for the issue is Corpwis Advisors Private Limited, while Maashitla Securities Private Limited serves as the registrar. Alacrity Securities Limited is appointed as the market maker for the IPO, responsible for maintaining liquidity in the stock post-listing.

Grey Market Premium and Subscription Status

The Grey Market Premium (GMP) for Victory Electric Vehicles International IPO is currently at ₹ 0, reflecting no expected listing gains. This indicates subdued market demand and suggests that investors should not expect quick profits on listing. It is important to understand that GMP is unofficial, unregulated, and based on informal demand and supply, so it is not a reliable indicator of final market performance.

The IPO opens for subscription on May 20, 2025, and real-time subscription updates can be tracked on financial platforms during the subscription window.

Management Team

The company is led by Mr. Sanjay Kumar Popli, Managing Director, who brings 3 years of experience in marketing and communications through his partnership firm, with demonstrated expertise in strategic marketing and communications. Alongside, Seema, with 3 years of operational and administrative experience and 4 years as a commerce lecturer, supports operational efficiency and educational insights. Their combined expertise positions the leadership team well to navigate the challenges of the fast-growing electric vehicle sector.

Financial Performance

Victory Electric Vehicles International Limited has shown steady growth over recent years. The revenues from operations were:

• ₹ 48.14 Crores in FY22

• ₹ 52.14 Crores in FY23

• ₹ 48.76 Crores in FY24 (annualized as of Dec 31, 2024)

• ₹ 39.68 Crores for the period ended Dec 31, 2024

EBITDA figures also show improvement:

• ₹ 1.95 Crores in FY22

• ₹ 2.06 Crores in FY23

• ₹ 7.35 Crores in FY24

• ₹ 6.23 Crores for the period ended Dec 31, 2024

Profit after tax rose from ₹ 64.55 Lakhs in FY22 to ₹ 4.89 Crores in FY24, showing profitability gains and operational efficiency improvements.

Key Financial Metrics

• Pre-issue Earnings Per Share (EPS) for FY24 is ₹ 18.95

• Post-issue EPS is ₹ 2.30

• Pre-issue Price to Earnings (P/E) ratio is 3.80x

• Post-issue P/E ratio is 31.36x, compared to the industry average P/E of 24x

• Return on Capital Employed (ROCE) is 44.78%

• Return on Equity (ROE) and Return on Net Worth (RoNW) are both at 70.19%

• Annualized EPS based on the latest data is ₹ 4.41, with a P/E ratio of 16.31x

While financial performance indicates strong profitability and returns, the high post-issue P/E ratio suggests the IPO is fully priced with limited margin for immediate listing gains.

Investment Recommendation

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

The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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