Victory Electric Vehicles International
- Victory Electric Vehicles International is coming out with an initial public offering (IPO) of 84,30,000 equity shares of face value of Rs 5 each for cash at a fixed price of Rs 41 per equity share.
- The issue will open on January 07, 2026 and will close on January 09, 2026.
- The shares will be listed on SME Platform of NSE.
- The share is priced at 8.20 times higher to its face value of Rs 5.
- Book running lead manager to the issue is Corpwis Advisors.
- Compliance Officer for the issue is Bharti Rajput.
Profile of the company
Victory Electric Vehicles International manufactures electric vehicles ranging from E-rickshaws, E-Cargo/Loader E -Rickshaws, Scooters etc. Its portfolio extends beyond conventional offerings to include customized E-Three Wheelers, catering to specific needs such as Food Three Wheelers and Ice Cream Three Wheelers etc. Its business focuses on capturing the opportunity arising out of electrification of mobility in India and it also seeks opportunities to export its EVs in select international markets in the future.
The company’s products consist of L3 Electric Vehicles, L5 Electric Vehicles and Electric Scooty. L3 electric vehicles are technically classified as electric rickshaws or E-Rickshaws or E-Carts. They have a maximum speed of up to 25 kmph and a motor power of 1200 Watt or less. These are primarily used for passenger transportation over short distances and carrying less load & weight and are widely visible on Indian roads. These E-Rickshaws (L3 category) are operational across India, offering affordable and eco-friendly transport solutions.
L5 electric vehicles are three-wheeled motor vehicles designed to carry people or goods. They have a maximum speed of up to 55 kmph vehicles and a motor power of 3000 Watt or less. The Gross Vehicle Weight (GVW) is up to 1,500 kilograms, excluding the weight of traction batteries. These vehicles are the electric equivalent of CNG and petrol autos seen on roads. Further, Electric scooty is a two-wheeled, motorized vehicle powered by electric motors and rechargeable batteries, providing a sustainable, cost effective and eco-friendly solution to traditional gasoline-powered vehicles. They have maximum speed of 25 kmph.
Proceed is being used for:
- Capital expenditure
- Working capital requirements
- General corporate expenses
Industry Overview
India's electric vehicle (EV) sector is experiencing rapid growth, fuelled by government incentives, rising environmental concerns, and technological advancements. With initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, India aims to significantly increase EV adoption, revolutionizing its transportation landscape towards sustainability and innovation. In the past two years, sales of E2Ws have surged from around 143,000 in 2021 to over 859,376 in 2023, representing a tremendous growth. This increase is attributed to the growing demand for personal mobility, heightened environmental awareness, and the escalation in gasoline prices by 46% between 2019 and 2022. In January 2024, the total registrations of two-wheeler EVs surged to 81,344 units. Ola Electric led the market with 32,000 units, while TVS Motor secured the second position with a notable increase in EV registrations to 15,181 units. As of February 2024, there are 12,146 operational public EV charging stations nationwide, Maharashtra has the highest number of EV charging stations, followed by Delhi and other states.
The mounting concern over climate change and the ecological impact of traditional ICE vehicles is driving consumer preference toward electric mobility. This environmental consciousness has fueled increased EV adoption, as EVs are renowned for their eco-friendly attributes, zero tailpipe emissions, and compatibility with renewable energy sources. Government incentives and corporate sustainability initiatives further boost their demand. Simultaneously, women, attracted by the convenience, safety, and advanced features of EVs, are making one in every four EV purchases. EVs offer serene, quiet driving experiences due to their engine less design, reduced vibrations, and low maintenance. The EV market's significant growth, competition, and innovation result from the entry of numerous manufacturers, enhancing battery efficiency and driving range, making EVs more accessible, aided by global incentives.
The EV Landscape in India is maturing at a rapid pace due to evolving consumer preferences and strong government support. EVs are not the future anymore, they are the present. It’s the right time to embrace them for sustainability, cost efficiency and advanced technology. This trend is set to further grow and position India’s EV market as one of the largest in the world, propelled by the growing demand for eco-friendly transport and the government’s efforts to promote EVs through incentives and infrastructure investments. However, expanding charging networks and improving accessibility is vital. Furthermore, advancements in battery tech are crucial for improved performance, range, and charging speed. Affordability will continue to attract a broader consumer base. Collaborative efforts among the government, industry stakeholders, and research institutions need to continue to overcome these challenges and drive sustainable EV adoption.
Pros and strengths
Geographical presence in 12 states with dealers in all 12 states: The company has widespread geographical reach, showcasing their commitment to sustainable mobility across India. It has strategically established a strong presence in states including Uttar Pradesh, Rajasthan, Haryana, Bihar, Madhya Pradesh, Jharkhand, Delhi, Chandigarh, Uttarakhand, Jammu & Kashmir, Gujarat and Maharashtra. These regions reflect its focus on E-Rickshaws, which continue to be important in urban and rural transportation.
Robust financial performance: The company has demonstrated robust financial performance with a consistent track record of profitability, even amidst the challenges posed by the COVID-19 pandemic. For the Stub period ended September 30, 2025 and Financial Years 2025, 2024 and 2023, its profit after tax stood at Rs 162.42 lakh, Rs 517.37 lakh, Rs 489.22 lakh and Rs 78.80 lakh respectively. Additionally, the company maintained a strong EBITDA of Rs 260.38 lakh, Rs 779.30 lakh, Rs 699.49 lakh and Rs 180.36 lakh respectively, for the corresponding periods. To enhance profitability, the company has implemented measures such as optimizing production facility utilization, undertaking process improvement initiatives, and refining planning and execution strategies. Moreover, this strategy facilitates comprehensive customer service, boosting revenue per customer while maintaining cost-effectiveness and profitability.
Experienced leadership backed by a skilled professional team: The company’s sustained business growth can be attributed to the extensive industry knowledge and expertise of its senior management, who collectively possess hands-on experience of more than a decade. Their rich experience has played a pivotal role in shaping and executing its business strategies and operational processes. By leveraging the profound market acumen of its promoters and senior management, it adeptly identifies market opportunities and tailor products and services to cater to specific customer segments. This collective wealth of market experience has significantly contributed to its business's remarkable growth trajectory and sustained profitability.
Risks and concerns
Product concentration risk in EV Rickshaws and Scooters: For the foreseeable future, the company will be dependent on revenue generated from the sale of its EV rickshaws and scooters, which it currently produces in a limited number of models. Automobile customers have come to expect manufacturers to offer a variety of vehicle models and introduce new and improved vehicle models on a regular basis. Given its sales dependence on few models of its EV rickshaws and scooters for the foreseeable future, if a particular rickshaw or scooter model is not well received by the market, its sales volume, business, prospects, financial condition, results of operations, and cash flows could be materially and adversely affected.
Regional concentration risk and exposure to state regulations: The company earns majority of revenue from few states i.e. Uttar Pradesh, Haryana, Bihar, Delhi and Madhya Pradesh. While it typically has long term relationships with its dealers in these states, it has not entered into long term agreements with its dealers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its dealers. Any adverse regulations from the state authorities may have a major impact on its presence in these states. The loss of one or more revenue from any of the states from which it has major revenue or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.
Risk of disruption in imported raw material supplies: The company’s imports accounts for nearly 15.53%, 9.40%, 11.10% and 7.17% for stub period ended September 30, 2025 and Fiscal 2025, 2024 and 2023 of its total purchase of raw materials. It cannot assure that it will be able to get the same quantum and quality of supplies, regularly or any supplies at all, and the loss of supplies from one or more of them may adversely affect its production and ultimately its revenue and results of operations. There can be no assurance that its existing suppliers will be able to provide adequate materials in a timely manner as it scales up its operations. If it is unable to successfully retain these suppliers on commercially favourable terms, it may have to seek alternative suppliers as replacement which may result in increased cost, delays in production, component/product replacement and servicing and ultimately reduce its sales, which in turn could adversely affect its results of operations and brand image.
Outlook
Victory Electric Vehicles International designs, manufactures, and distributes electric vehicles. The company provides sustainable and eco-friendly mobility solutions by offering a wide range of electric two-wheelers, three-wheelers, and commercial vehicles. The company has Geographical presence in 12 states with dealers in all 12 states. On the concern side, the company depends on third parties for the supply of raw materials and does not have firm commitments for supply or exclusive arrangements with any of its suppliers. Loss of suppliers may have an adverse effect on its business, results of operations and financial condition. Moreover, the company earns majority of revenue from few states like Uttar Pradesh, Haryana, Bihar, Delhi and Madhya Pradesh. Change in customer preference or any adverse regulation from the state governments in these states will have a major impact on its revenue from operations.
The company is coming out with an IPO of 84,30,000 equity shares of face value of Rs 5 each for cash at a fixed price of Rs 41 per equity share to mobilize Rs 34.56 crore. On performance front, the company’s revenue from operations has increased by 5% to Rs 5,086.18 lakh in FY25 from Rs 4,844.28 lakh in FY24 mainly due to sale of L5 E-rickshaw. Moreover, the profit after tax has increased by 5.75% from Rs 489.22 lakh for FY24 to Rs 517.37 lakh for FY25.
The company intends to increase and strengthen its manufacturing capacity which can meet the increasing demand of its products in future. And it can do so without any extra capital expenditure of purchasing land, by expanding one more floor on the existing floor which will approximately double its manufacturing capacity. Going forward, considering the significant growth potential in the EV industry, the company aims to expand its product base. It currently has a product portfolio of different products which includes Passenger Electric 3-wheeler vehicles, Loading Electric 3 Wheeler vehicles, 2 wheelers and customizable products from L3 series and 5 different products in L5 series. It is further planning to add new products in all three categories and expand the customer base.
