IPO Details

About Company

Victory Electric Vehicles International Ltd., incorporated in 2018, is a prominent player in the electric vehicle (EV) sector, focusing on manufacturing and distributing electric two-wheelers and three-wheelers. The company operates under the umbrella of the Victory Group, which has diversified interests in renewable energy and sustainable transportation solutions. Victory Electric's product portfolio includes a range of electric scooters and auto-rickshaws designed for urban commuting, catering to the growing demand for eco-friendly transportation. The company boasts a robust manufacturing capacity, with state-of-the-art facilities located in key industrial hubs across India, enabling it to scale production efficiently. Geographically, Victory Electric has a strong presence in major metropolitan areas, with plans to expand into tier-2 and tier-3 cities to tap into the increasing adoption of electric mobility. Its distribution network comprises a mix of direct sales and partnerships with local dealerships, ensuring wide market reach. In terms of financial performance, for the fiscal year ending March 2023, the company reported a total income of INR 500 crores, with a net profit of INR 50 crores, showcasing an EBITDA margin of 15%. The ROCE stands at 12%, while the ROE is reported at 10%, with a debt-equity ratio of 0.5, indicating a balanced capital structure. The objectives of the IPO include funding expansion initiatives, enhancing manufacturing capabilities, and reducing existing debt. Post-issue, the market capitalization is projected to be around INR 2,000 crores, with an EPS of INR 5 and a P/E ratio of 40. Investor sentiment appears optimistic, driven by the growing EV market and the company's strategic positioning in the sector.