Victory Electric Vehicles International Limited IPO

The Indian electric vehicle industry is in a high-growth phase driven by rising fuel prices, environmental concerns, and government initiatives such as FAME and PLI schemes.

Two-wheelers and three-wheelers form the largest segment of EV adoption due to their affordability and suitability for commercial and personal use.

The sector remains competitive with many new entrants, startups, and traditional automobile manufacturers launching EV models.

Growth prospects remain strong due to urbanization, rising logistics demand, and increasing awareness of sustainable transport solutions.

The promoters of the company are:

Sanjay Kumar Popli

Seema Popli

Palak Popli

They bring entrepreneurial experience and operational involvement in the electric vehicle and automotive segment. The promoter group is responsible for strategic decision-making, business development, and financial planning.

Their leadership has been central to establishing the company’s manufacturing base, brand presence, and dealer network.

The company is led by:

• Managing Director – Sanjay Kumar Popli: Oversees overall business strategy and operations.

• Whole-Time Director – Palak Popli: Handles execution, product development, and operational growth.

• Chief Financial Officer – Sanjay Kumar Popli: Responsible for financial management and reporting.

• Company Secretary & Compliance Officer – Bharti Rajput: Ensures legal and regulatory compliance.

The management team is supported by experienced professionals in production, sales, and administration.

The company and its promoters are involved in certain routine legal and tax-related proceedings. These mainly relate to statutory dues, regulatory filings, and minor commercial disputes.

Management believes that these cases do not pose a material threat to business continuity. However, any unfavorable rulings could result in financial liabilities or reputational impact.

The company has shown improvement in revenue and profitability over recent years, reflecting growing demand for its EV products.

Sales growth has been driven by increased production volumes and wider market penetration.

Net worth has strengthened due to retained earnings and capital infusion prior to the IPO.

Operating cash flows are largely generated from core business activities but fluctuate based on working capital needs.

Investing cash flows mainly reflect capital expenditure on machinery, tooling, and infrastructure.

Financing cash flows include borrowings, repayments, and funds raised from equity issuance.

Overall cash management is closely linked to inventory levels and receivables.

Key financial indicators show:

• Improving profitability margins

• Reasonable return on equity

• Stable earnings per share

• Gradual strengthening of net asset value

These ratios indicate operational stability with scope for further efficiency improvements as scale increases

The proceeds from the IPO will be used for:

Funding capital expenditure for expansion of operations

Meeting working capital requirements

General corporate purposes

These objectives aim to strengthen production capacity and support future growth.

The IPO is a 100% fresh issue of equity shares with no offer for sale by existing shareholders.

A portion of the issue is reserved for market makers, while the remaining shares are allocated to retail and other investor categories as per SME regulations.

The issue follows a fixed price mechanism and is proposed to be listed on NSE Emerge.

The issue price has been determined based on:

Company’s financial performance

Growth prospects of the EV sector

Comparison with similar businesses

Future expansion plans

Since SME EV companies have limited listed peers, valuation is largely based on internal fundamentals and market expectations.

Before the issue, shareholding was primarily with promoters and existing shareholders.

Post issue, equity capital will increase and promoter shareholding will dilute accordingly.

The company does not have complex convertible instruments in its capital structure.

The company has entered into transactions with promoters and related entities in the normal course of business.

These include purchases, services, and expense reimbursements.

Management states that all such transactions are conducted on an arm’s length basis and comply with legal requirements.

Key contracts include:

Issue management agreement with the lead manager

Registrar agreement

Underwriting agreement

Market making agreement

Banker to the issue agreement

These contracts govern the IPO process and listing obligations.

The company has constituted statutory committees such as:

Audit Committee

Nomination & Remuneration Committee

Stakeholders Relationship Committee

It follows governance practices under the Companies Act and SEBI regulations applicable to SME-listed companies, with emphasis on transparency and accountability.

Management reports growth driven by rising adoption of electric two-wheelers and three-wheelers.

Raw material costs and supply chain efficiency remain key operational challenges.

The company plans to expand capacity, introduce new models, and strengthen its dealer network.

Future performance will depend on EV policy support, customer acceptance, and execution of expansion plans