Victory Electric Vehicles International IPO listing: Shares make weak debut, list at 19% discount

Victory Electric Vehicles International IPO listing: Victory Electric Vehicles International's share price made a weak debut on the Indian stock market on Wednesday, January 14. Victory Electric Vehicles International shares got listed at a 19% discount to the IPO price of ₹41 per share.

Victory Electric Vehicles International shares opened at ₹34.45 apiece on NSE SME. The SME stock immediately fell by over 5% to ₹32.75 on NSE after making a weak debut.

The listing was lower than expectations, as signalled by the grey market premium (GMP). Ahead of the listing, the shares were trading at a ₹0 premium in the grey market, as per Investorgain, suggesting a debut at par to the offer price.

Victory Electric Vehicles International IPO details

The ₹35 crore fixed-price IPO, which was open for subscription from January 7 to January 9, received a muted response from investors, garnering an overall subscription of 0.95 times. The retail portion was subscribed 0.99 times, while the non-institutional investor category saw a subscription of 0.91 times.

The issue did not include a QIB segment. A total of 698 applications were received, indicating measured investor participation amid increased selectivity in the SME IPO market.

The offering consisted entirely of a fresh issue of 84.30 lakh equity shares, amounting to ₹34.56 crore, with shares priced at ₹41 apiece.

Proceeds from the issue are proposed to be utilised mainly towards capital expenditure worth ₹5 crore, working capital needs of ₹18 crore, and general corporate purposes amounting to ₹6.78 crore.

Corpwis Advisors Pvt. Ltd. acted as the book-running lead manager for the issue, while Maashitla Securities Pvt. Ltd. served as the registrar. Alacrity Securities Ltd. is the market maker.

Victory Electric Vehicles International, incorporated in 2018, operates in the electric vehicle space, specialising in the design, manufacturing, and distribution of electric two-wheelers, three-wheelers, and commercial EVs.

Its product range includes e-rickshaws, cargo and loader e-rickshaws, electric scooters, and customised electric three-wheelers tailored for niche applications such as food vending and ice cream carts. The company states that it has a dealer network spread across 12 states and positions itself as a provider of affordable and eco-friendly mobility solutions.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.