Victory Electric IPO Opens: GMP Steady at ₹0

Victory Electric IPO Opens at ₹72; GMP Remains Neutral at ₹0

Victory Electric Vehicles Limited, one of India’s emerging electric vehicle companies, has launched its Initial Public Offering (IPO) on 20th May 2025. The IPO is a fixed price issue offering 56.47 lakh equity shares, aiming to raise ₹40.66 crore. With an issue price of ₹72 per share, the IPO is open for bidding from 20th May to 23rd May 2025. Despite growing interest in the electric vehicle sector, the grey market premium (GMP) for Victory Electric IPO stands at ₹0 as of the opening day, indicating a flat sentiment in early trading.

Victory Electric IPO: Basic Information

• IPO Open Date: 20th May 2025

• IPO Close Date: 23rd May 2025

• Issue Size: ₹40.66 crore (56.47 lakh shares)

• Face Value: ₹5 per share

• Issue Price: ₹72 per share

• Lot Size: 1,600 shares

• Minimum Retail Investment: ₹1,15,200

• Listing Platform: NSE SME

• Tentative Listing Date: 28th May 2025

• IPO Type: Fixed price issue

• Market Makers’ Allocation: 2.83 lakh shares

• Registrar: Maashitla Securities Private Limited

Grey Market Premium (GMP) Trend

As of 20th May 2025, the Victory Electric IPO GMP is ₹0. This means there is no expected listing gain based on current grey market indications. GMP reflects the unofficial market sentiment and is not regulated, but it often gives early insights into demand and potential premium post listing.

GMP History Table:

Company Overview

Victory Electric Vehicles Limited manufactures and sells electric two-wheelers and three-wheelers, focusing on sustainable mobility solutions. The company aims to capture a growing market share in India’s rapidly evolving EV ecosystem. Its vehicle models focus on affordability, low maintenance, and user-friendly features that cater to both urban and semi-urban consumers.

Use of IPO Proceeds

The company plans to utilize the net proceeds from the IPO for the following purposes:

1. Working Capital Requirements:
   To ensure liquidity for operational needs and inventory management.

2. Capital Expenditure:
   For setting up and upgrading manufacturing infrastructure.

3. General Corporate Purposes:
   For business expansion, marketing, administrative costs, and other strategic needs.

Victory Electric IPO Review

Financial Overview

Victory Electric Vehicles Limited posted a moderate growth in revenues and a substantial jump in profitability in FY24, indicating operational improvement.

• FY24 Revenue: ₹33.94 crore (up from ₹29.53 crore in FY23)

• FY24 PAT: ₹3.88 crore (up from ₹0.10 crore in FY23)

This reflects a 14.93% rise in revenue and a staggering 3,780% growth in profit after tax (PAT), showing sharp margin improvements and better cost control.

Technical and Financial Metrics

The high RoNW and ROE figures indicate strong profitability metrics and efficient capital usage. However, the PE ratio is relatively elevated, suggesting the IPO might be fully priced or slightly expensive based on earnings visibility.

Expert Opinion and Ratings

Most analysts have issued a neutral to cautious outlook for this IPO. While the sectoral outlook for electric vehicles remains optimistic, the GMP being flat is interpreted as a sign of muted short-term listing enthusiasm.

Experts suggest this IPO may be more suitable for long-term investors who believe in the growth potential of India’s EV market rather than for those looking for listing gains.

Competitive Advantage

Victory Electric Vehicles Limited competes in a dynamic and fast-evolving industry. Some of its competitive advantages include:

• Product Design and Innovation: EVs designed for Indian road conditions

• Growing Market Opportunity: Rising demand in Tier-2 and Tier-3 cities

• Brand Recall: Gradually building trust and recognition through targeted marketing

• Government Push for EVs: FAME II and other state-level incentives create growth tailwinds

Risks and Concerns

Despite the promising growth story, investors must weigh the associated risks:

1. No Listing Premium: GMP at ₹0 suggests flat listing.

2. High Minimum Investment: ₹1.15 lakh may deter small retail investors.

3. EV Competition: Established players in the two-wheeler EV space pose a threat.

4. Supply Chain Dependencies: Any disruption in lithium battery sourcing can impact production.

5. New Listing on SME Platform: Less liquidity and higher volatility compared to main board stocks.

Allotment and Refund Timeline

• Allotment Date: 27th May 2025

• Refund Initiation: 27th May 2025

• Listing Date: 28th May 2025

Retail investors will be able to check their allotment status via Maashitla Securities Private Limited. Refunds and credit to demat accounts are expected to happen on the same day.

Market Sentiment and Investor Strategy

The subdued GMP indicates that investors may be adopting a wait-and-watch strategy. While retail interest in electric vehicle IPOs remains, the current market mood favors businesses with proven scalability and market leadership.

Given the high valuations and GMP trends, those applying should have a long-term horizon, especially considering the high post-IPO PE ratio of 29.57.

Victory Electric’s financial turnaround, backed by a profitable FY24, may serve as a foundation for future growth if the company manages to scale operations, improve distribution, and capitalize on the booming EV adoption in India.

Final Verdict

Victory Electric Vehicles Limited’s IPO offers exposure to India’s fast-growing EV segment. With a fixed price of ₹72 per share and a high RoNW of over 70%, the company showcases strong profitability. However, the flat GMP and premium valuations suggest investors should tread cautiously.

Those investing should focus on fundamentals and future scalability rather than short-term listing gains. For investors with a risk appetite and a belief in EV sector growth, Victory Electric IPO could offer promising returns in the long run.

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