Victory Electric Vehicles IPO - Details

Victory Electric Vehicles is gearing up for its initial public offering (IPO), which will be open for subscription from May 20 to May 23, 2025. The company has fixed the share price at ₹72 each and aims to raise ₹40.66 crores entirely through fresh issuance of shares, meaning all funds will go directly to the company for business growth and expansion. Unlike many other IPOs, there is no offer-for-sale component in this issue, indicating that existing shareholders are not selling any of their stakes at this stage.

The allocation structure of this IPO presents an interesting mix, with 50% of shares reserved for retail investors and the remaining 50% allocated to high net-worth individuals (HNIs). Notably absent is any quota for qualified institutional buyers (QIBs), which is somewhat unusual and suggests the company may be focusing more on domestic individual investors. This allocation pattern could influence the subscription dynamics and post-listing performance of the shares.

Investors should mark their calendars for key dates in the IPO process. The share allotment will be finalized on May 27, followed by listing on the National Stock Exchange (NSE) the very next day, May 28. This tight schedule indicates the company and its bankers are aiming for a quick transition from subscription to listing, which could mean less time for investors to evaluate their decisions between allotment and trading commencement.

A closer examination of the company’s financial performance reveals a mixed picture. While revenues declined from ₹52.14 crores in 2023 to ₹48.76 crores in 2024, the company managed to significantly improve its profitability during the same period. Profits jumped dramatically from ₹0.79 crores to ₹4.89 crores, suggesting improved operational efficiency or perhaps favorable changes in cost structures. However, potential investors should carefully analyze whether this profit growth is sustainable and what factors contributed to the revenue decline.

The electric vehicle sector in India continues to show promising growth potential, supported by government incentives and increasing environmental awareness among consumers. Victory Electric Vehicles’ IPO comes at a time when investor interest in EV companies remains strong. However, as with any public offering, investors should thoroughly review the company’s prospectus, understand its business model, evaluate its competitive position in the market, and assess its growth plans before making investment decisions. The absence of institutional participation might be seen as either a red flag or an opportunity, depending on one’s investment perspective.