The initial share sale of Victory Electric Vehicles commenced for public subscription today, January 7, marking a significant step for the electric mobility solutions provider. The company is aiming to raise a total of ₹34.56 crore entirely through a fresh issue of equity shares.
IPO Subscription Status: A Slow Start
As of the early afternoon on the first day, the public offering received a lukewarm response from investors. Data showed that bids were received for approximately 10.4 lakh shares against the total offer of 80.07 lakh shares. This translates to an overall subscription rate of just 0.13 times the offered size.
A closer look at the segment-wise subscription reveals a varied picture. The portion reserved for retail individual investors (RIIs) saw a subscription of 0.24 times. However, the category for non-institutional investors (NIIs), which includes high-net-worth individuals, was subscribed a mere 0.02 times, indicating very limited interest from this investor class on day one.
Key Details of the Victory Electric Vehicles IPO
The public offering is open for subscription and will close on Friday, January 9. Investors considering participation should note the following critical details:
The company has set a price band of ₹41 per equity share. For retail investors, the minimum investment is substantial due to the lot size. The IPO lot size is fixed at 6,000 shares, which means a retail applicant needs to invest at least ₹2.46 lakh to apply for one lot.
The allocation is structured with 40 lakh shares each reserved for retail investors and non-institutional buyers. The net proceeds from the IPO are earmarked to meet the company's working capital requirements and for general corporate purposes.
Allotment, Listing, and Company Profile
The basis of allotment for the IPO is scheduled to be finalized by Monday, January 12. Successful applicants can expect the shares to be credited to their demat accounts by Tuesday, January 13. Refunds for unsuccessful bids will also be initiated on the same day. The shares of Victory Electric Vehicles are proposed to be listed on the NSE SME platform on Wednesday, January 14.
Market sentiment prior to the listing, as indicated by the grey market premium (GMP), was neutral. Sources reported that the GMP for the IPO was nil, suggesting the stock could list at or around its issue price.
Victory Electric Vehicles is engaged in the design, manufacturing, and distribution of a range of electric vehicles. Its product portfolio includes electric two-wheelers, three-wheelers, and commercial vehicles. Notably, the company also offers customised E-three-wheelers for specific commercial uses like food vending and ice cream sales, as per its draft red herring prospectus (DRHP).
Corpwis Advisors Pvt. Ltd. is acting as the book-running lead manager for the issue, while Maashitla Securities Pvt. Ltd. is the registrar. The market maker for the company is Alacrity Securities Ltd.
Disclaimer: This article is for informational purposes only. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
