Victory Electric Vehicles to Defer its IPO

Mumbai, 20 May 2025 – Victory Electric Vehicles International has opted to defer its much-anticipated initial public offering (IPO) for the time being.

The New Delhi-based electric vehicle manufacturer was scheduled to open its Rs 40.66-crore public issue for subscription on May 20, with a closing date set for May 23. Structured as a fixed price issue, the offering had set its share price at Rs 72, targeting the sale of 56.47 lakh equity shares.

According to sources familiar with the matter, the postponement decision was made last week, though no official explanation has been provided by the company or its appointed merchant banker, Corpwis Advisors. The IPO proceeds were earmarked for capital expenditure, working capital needs, and general corporate purposes.

The move comes at a time when broader market conditions appear stable and investor interest in public issues has shown signs of recovery. This unexpected delay has raised speculation about underlying concerns, ranging from tepid demand during pre-market engagement to apprehensions about valuation or competitive landscape pressures.

Victory Electric Vehicles is not alone in its decision. Earlier this month, Wagons Learning withdrew its Rs 38.38-crore public issue mid-way through its subscription window, following a muted investor response. As of May 5, just a day before closure, the Victory Electric Vehicles IPO had garnered a mere 8% subscription. The company had priced its shares between Rs 78 and Rs 82.

The latest development also mirrors a similar episode in November 2024, when Rosmerta Digital Services postponed its Rs 206-crore IPO, despite planning what could have been the largest public issue in the SME segment. That offering, too, was entirely a fresh issue and faced delays reportedly due to adverse market sentiment.

The repeated postponement of IPOs—irrespective of broader market health—indicates an evolving trend. Companies appear increasingly cautious, perhaps reflecting a more discerning retail and institutional investor base that is no longer swayed merely by sector trends or superficial financial projections.

As it stands, Victory Electric Vehicles International has not provided a revised timeline for its IPO. For now, the deferment adds another name to a growing list of companies that are struggling to translate IPO ambitions into market reality, underscoring a mismatch between company expectations and investor confidence.

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