Victory Electric Vehicles International Limited Makes Weak Debut with 15.98% Decline, Lists at ₹34.45 Against Poor Subscription

Victory Electric Vehicles International Limited, incorporated in 2018 designing, manufacturing, and distributing electric vehicles providing sustainable and eco-friendly mobility solutions offering wide range of electric two-wheelers, three-wheelers, and commercial vehicles including E-rickshaws, E-Cargo/Loader E-rickshaws, scooters, and customized E-Three Wheelers including Food Three Wheelers and Ice Cream Three Wheelers integrating advanced technologies including lithium-ion battery systems, efficient electric drivetrains, and smart connectivity features catering to domestic and international markets, made a weak debut on NSE SME on January 14, 2026. After closing its IPO bidding between January 7-9, 2026, the company commenced trading with a severe decline of 15.98% opening at ₹34.45 and hit lower circuit at ₹32.75 (down 20.12%).

Victory Electric Vehicles International Limited Listing Details

Victory Electric Vehicles launched its IPO at ₹41 per share with minimum investment of 6,000 shares costing ₹2,46,000. The IPO received poor response with subscription of 0.95 times (undersubscribed) - individual investors at 0.99 times (undersubscribed), NII at 0.91 times (undersubscribed).

First-Day Trading Performance

Listing Price: Victory Electric Vehicles opened at ₹34.45 representing severe decline of 15.98% from issue price of ₹41.00, quickly hit lower circuit at ₹32.75 (down 20.12%), with VWAP at ₹34.15.

Growth Drivers and Challenges

Growth Drivers:

Financial Performance: Revenue increased from ₹48.76 crore to ₹51.06 crore between FY24 and FY25, PAT rose from ₹4.89 crore to ₹5.17 crore, exceptional ROE of 42.10%, ROCE of 31.27%, RoNW of 42.11%, healthy PAT margin of 10.17%, strong EBITDA margin of 15.32%.

Product Portfolio: Comprehensive offering of electric two-wheelers, three-wheelers, and commercial vehicles including E-rickshaws, E-Cargo/Loader E-rickshaws, scooters, customized Food Three Wheelers and Ice Cream Three Wheelers.

Technology Integration: Advanced lithium-ion battery systems, efficient electric drivetrains, smart connectivity features, geographical presence across 12 states with dealers in all 12 states.

Challenges:

Severe Market Rejection: IPO undersubscribed at 0.95 times with both retail (0.99x) and NII (0.91x) undersubscribed demonstrating complete investor rejection, opening decline of 15.98% followed by immediate lower circuit hit at 20.12% down creating massive losses.

Valuation Concerns: Extreme EPS dilution from ₹3.30 to ₹1.35 post-issue, post-issue P/E of 30.41x appears extremely elevated versus pre-issue 12.41x, significant promoter dilution from 97.41% to 63.33%.

Operational Risks: Operating in highly competitive and fragmented electric vehicles segment facing intense competition from established players, debt-to-equity of 0.62, total borrowings of ₹9.29 crore decreasing to ₹4.85 crore.

Utilisation of IPO Proceeds

Capital Expenditure: ₹5.00 crore for capital expenditure requirements enhancing manufacturing capabilities.
Working Capital: ₹18.00 crore for working capital requirement representing majority of proceeds supporting electric vehicle manufacturing operations.

General Corporate Purposes: ₹6.78 crore for general corporate purposes supporting operational needs.
Financial Performance

Revenue: ₹51.06 crore for FY25, modest growth from ₹48.76 crore in FY24, reflecting limited scale expansion in electric vehicles manufacturing despite growing market.

Net Profit: ₹5.17 crore in FY25, growth from ₹4.89 crore in FY24, though analyst questions sustainability calling surge in bottom lines window dressing.

Financial Metrics: Exceptional ROE of 42.10%, debt-to-equity of 0.62, ROCE of 31.27%, PAT margin of 10.17%, EBITDA margin of 15.32%, price-to-book of 4.32x, post-issue EPS of ₹1.35 (versus pre-issue ₹3.30), extreme P/E of 30.41x, borrowings of ₹9.29 crore, and market capitalisation of ₹78.89 crore representing severe listing decline with 15.98% opening loss followed by lower circuit creating 20.12% maximum losses with IPO undersubscribed at 0.95 times demonstrating complete market rejection despite electric vehicles growth narrative.