Voler Car Limited made its debut on the NSE SME platform on February 19, 2025, at ₹90 per share, matching its IPO price. However, the stock soon faced selling pressure, falling 5% to ₹85.50, triggering the lower circuit limit. Despite a strong 12.38x subscription rate, the stock's performance post-listing indicated limited investor enthusiasm.

The Voler Car IPO opened for subscription between February 12 and February 14, 2025, raising ₹27 crore through a fresh issue of 30 lakh shares. The company, which specializes in employee transportation services (ETS) for large multinational corporations (MNCs) and corporate clients, had set an IPO price band of ₹85 to ₹90 per share.

Voler Car’s IPO Performance and Subscription Data

The IPO garnered significant investor interest, with an overall subscription of 12.38 times on its final day, indicating strong demand. The company also raised ₹7.50 crore from anchor investors, issuing 8,33,600 equity shares at ₹90 each.

Despite this demand, grey market premium (GMP) data suggested a lack of listing gains, with the GMP staying at ₹0 leading up to the listing. This indicated that investors were cautious about short-term price movements.

Here’s how different investor categories subscribed to the IPO:

• Retail Investors: 8.15x
• Non-Institutional Investors (NIIs): 19.42x
• Qualified Institutional Buyers (QIBs): 4.92x

Objectives of the IPO

Voler Car plans to utilize the IPO proceeds for:

1. Working capital requirements – ₹20.38 crore
2. General corporate purposes
3. Covering IPO issue expenses

Voler Car’s Business Model and Market Position

Voler Car operates in the corporate transportation sector, offering home-to-office-to-home employee transportation solutions. The company has a strong presence across major Indian cities, providing 24/7 customer support, a verified fleet, and professional chauffeur-driven services for corporate clients.

With the growing demand for corporate mobility solutions, Voler Car has positioned itself as a key player in the industry. However, competition from app-based ride-hailing services and traditional corporate transport providers could impact its growth.

Voler Car’s Financial Performance

Voler Car’s financial data suggests consistent revenue growth:

• Revenue (FY24, till Sep 30, 2024): ₹2,157.67 lakh
• Revenue (FY23): ₹3,145.15 lakh
• Revenue (FY22): ₹2,662.97 lakh
• Revenue (FY21): ₹2,482.84 lakh

The company’s profit after tax (PAT) has also shown improvement:

• FY24 (till Sep 30, 2024): ₹248.57 lakh
• FY23: ₹356.29 lakh
• FY22: ₹199.23 lakh
• FY21: ₹78.81 lakh

While revenue and profits have grown, the IPO's price-to-earnings (P/E) ratio of 28.15x post-issue suggests that the stock may be fully valued, compared to the industry average P/E of 15x.

Post-Listing Performance and Investor Sentiment

The stock's 5% decline post-listing indicates profit-booking by early investors or a lack of confidence in immediate upside potential. Market analysts believe the stock is fairly valued, limiting short-term price appreciation.

Despite this, Voler Car’s strong financials, high subscription rate, and increasing demand for corporate transportation suggest long-term growth potential. However, given the current market sentiment and the stock's full valuation, analysts advise investors to avoid the stock for immediate listing gains but consider long-term holding based on business growth.

Conclusion

Voler Car’s flat listing at ₹90 and 5% drop to ₹85.50 highlight mixed investor sentiment. While the company operates in a growing sector and has strong financials, its IPO valuation and competition risks could impact future price movements. Investors should evaluate long-term business growth potential rather than focusing solely on listing gains.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments.

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