Voler Car IPO Listing: Stock lists flat on NSE SME

Voler Car IPO Listing

Voler Car IPO Listing: Weak Debut as Shares Hit Lower Circuit, Leaving IPO Investors Disappointed

Voler Car’s much-awaited ₹27 crore Initial Public Offering (IPO), which was open for subscription from February 12 to 14, made its market debut today with an underwhelming performance on the NSE SME platform.

Despite receiving overwhelming interest during the subscription phase, the stock opened flat at ₹90 per share, and after a brief uptick, it hit the lower circuit limit.

This resulted in a sharp decline in the stock’s value, leaving IPO investors in shock. They had hoped for a profitable listing, but were instead faced with a loss.

Voler Car IPO: Subscription Details and Initial Performance:

Voler Car’s IPO received an exceptionally strong response from the investing community, with a total subscription of 13.62 times the number of shares on offer.

The subscription was well-diversified across the three categories—Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors.

The QIB portion was subscribed 9.34 times, the NII portion was subscribed 18.56 times, and the Retail Investors portion was subscribed 13.94 times, reflecting strong demand across investor segments.

The company issued 30 lakh new equity shares with a face value of ₹10 each, priced at ₹90 per share. However, the debut performance left much to be desired.

When trading began, the shares listed at ₹90, which meant IPO investors had no immediate gains on listing.

While the stock price did experience a brief upward movement, reaching ₹92.90, the shares soon hit the lower circuit limit, which is a 5% drop from the listing price, triggering a halt in further trading.

At the time of hitting the lower circuit, Voler Car’s stock price had dropped to ₹85.50, disappointing investors who were hoping for better returns.

A slight recovery followed, as the shares rose to ₹93.90, but this was short-lived. As the day progressed, profit-booking pressure weighed down on the stock, causing it to close at ₹89.35.

This represented a marginal loss of 0.72% from the IPO price of ₹90 per share. The weak debut raises questions about the company’s market outlook and investor sentiment, as IPO investors were hoping for listing gains but ended up facing a loss.

How Will the Money Raised from the Voler Car IPO Be Used?

The ₹27 crore raised through the Voler Car IPO is intended to be utilized in a variety of ways to support the company’s expansion and operations.

A significant portion of the funds will be directed towards meeting the company’s working capital requirements.

This will help Voler Car manage its cash flow and ensure smooth operations as it continues to grow its fleet and expand into new markets.

Additionally, a portion of the funds will be used to cover expenses related to the IPO itself, such as underwriting fees, legal and regulatory costs, and other related charges.

Lastly, the company intends to use the remaining funds for general corporate purposes, including the possible acquisition of additional vehicles or expanding its infrastructure.

The use of funds aligns with the company’s business objectives, as it looks to maintain and enhance its competitive position in the employee transportation sector.

Voler Car’s ability to effectively utilize the capital raised will be critical to its future growth and performance.

Voler Car: A Snapshot of the Company’s Business and Financial Health

Founded in 2010, Voler Car has steadily established itself as a key player in the corporate employee transportation service (ETS) industry.

The company specializes in providing reliable, safe, and efficient transportation services to large multinational corporations (MNCs) and corporate clients.

Voler Car operates a fleet of over 2,500 vehicles, including cars, SUVs, electric vehicles (EVs), buses, and tempo travelers.

The company operates in multiple cities across India, including Kolkata, Mumbai, Pune, Bhubaneswar, Delhi-NCR, and Ahmedabad.

This wide geographical reach positions Voler Car as a major service provider in the rapidly growing employee transportation sector.

With a focus on quality service, safety, and timely transportation, Voler Car has earned the trust of many top-tier corporate clients.

When it comes to its financial health, Voler Car has shown consistent improvement over the years. For the fiscal year 2022, the company posted a net profit of ₹79 lakh, which increased to ₹1.99 crore in FY 2023.

In FY 2024, this growth accelerated, with a net profit of ₹3.56 crore. Over the same period, the company’s revenue also grew at a compound annual growth rate (CAGR) of over 12%, reaching ₹31.45 crore in FY 2024.

For the first half of FY 2024-25 (April-September 2024), Voler Car has already posted a net profit of ₹2.49 crore and revenue of ₹21.58 crore, indicating a strong performance in the current fiscal year.

This upward trajectory suggests that Voler Car is on a solid growth path, which could bode well for its future prospects.

However, despite these positive financial indicators, the weak debut on the stock market has raised concerns about how the market views the company’s future.

What’s Next for Voler Car and IPO Investors?

Despite the disappointing performance on its first trading day, there remains optimism around Voler Car’s long-term potential.

The company operates in a promising sector with significant growth opportunities, particularly as the demand for employee transportation services increases in India’s corporate sector.

As a result, Voler Car may continue to benefit from the expansion of its fleet and its geographical footprint.

However, investors will be keeping a close eye on the company’s financial performance and stock price movement in the coming weeks.

The weak debut has led to questions about investor confidence, and it will be crucial for the company to deliver strong financial results in its upcoming quarterly reports to restore market confidence.

A solid earnings report could help boost the stock price and bring some stability to the shares.

For now, IPO investors who bought at ₹90 are faced with a small loss, and many will be wondering whether the stock will rebound or continue to struggle.

While the company’s growth prospects remain intact, the market’s reaction to the IPO suggests that there may be some challenges ahead in terms of investor sentiment.

Final Remarks:

Voler Car’s IPO debut has been disappointing for many investors who were hoping for a strong listing gain.

Despite the company’s consistent growth and a strong business model, the stock’s performance on its first day of trading raised concerns about market sentiment.

As the company moves forward, it will need to address these concerns, effectively use the funds raised from the IPO, and continue to build its business to deliver long-term value for investors.

For now, IPO investors will be watching closely to see whether the stock can recover from its early losses and return to positive territory in the near future.