Voler Car shares hit 5% lower circuit after making a flat debut at ₹90 on NSE SME

Car transportation services provider Voler Car Ltd shares listed flat on the NSE SME platform on Wednesday, February 19, marking a lacklustre trading debut.

Shares of the company opened at ₹90 per piece on the NSE Emerge platform, the same as the issue price. However, soon after listing, the stock plunged 5% to hit the lower circuit of ₹85.5 apiece after touching an intraday high of ₹92.9 apiece.

More than 11.34 lakh equity shares changed hands on the bourse. The total turnover was ₹10.2 crore. The market valuation of the company stood at ₹95.28 crore.

At the listing price of ₹90 per share, the investors did not make any listing gain. However, after the stock plunged to the 5% lower circuit the Voler Car IPO investors would have faced a loss of ₹7,200 per lot as their investment reduced to ₹1,36,800 (₹85.5 x 1,600). The minimum investment in the IPO per lot at the upper price band was ₹1,44,000 (₹90 x 1,600).

Voler Car Ltd raised ₹27 crore from investors through its initial public offering last week. The IPO comprised a fresh issue of 30 lakh shares priced at ₹ 90 per share. The lost size was 1,600 shares. The issue was open for bidding on the NSE SME platform from February 12 to February 14.

Voler Car IPO received applications for around 2.66 crore shares against 19.53 lakh shares on offer. The IPO was subscribed 13.6 times.

The retail quota was booked 14 times with bids for around 1.36 crore shares compared to 9.77 lakh shares on offer. The non-institutional investors’ (NIIs) segment was booked 18.5 times as NIIs submitted bids for 77.79 lakh shares against 4.19 lakh shares allocated to them.

The qualified institutional buyers (QIBs) placed bids for 52 lakh shares against 5.56 lakh shares on offer. The QIB portion was booked 9.34 times.

Voler Car Ltd provides employee transportation services to multi-national companies, large corporates, IT and IT-enabled Services firms.

The company has a strong presence in major cities such as Ludhiana, Mumbai, Pune, Kolkata, Lucknow, Ahmedabad, Delhi-NCR, Bhubaneshwar and Jaipur. It operates a fleet of more than 2,500 vehicles which include electric cars, SUVs, sedans, tempo travellers and buses. The company manages around 1,183 trips per day.

The company offers home-to-office-to-home transportation, supported by 24/7 customer service, and a fleet of verified vehicles and chauffeur drivers. The company operates on an asset-light model where a majority of the vehicles are sourced from vendors rather than owned.

Voler Car has proposed to utilise the IPO proceeds of ₹20.38 crore to fund working capital requirements and the rest for general corporate purposes.

Voler Car financials

Voler Car posted a profit after tax of ₹2.48 crore for the April-September period of FY 2024-25. Its revenue during the first six months of the current financial year was ₹21.49 crore.

Voler Car’s revenue from operations stood at ₹30.9 crore in the year ended on March 31, 2024, compared to ₹23.96 crore in the year ended on March 31, 2023. Its profit after tax stood at ₹3.56 crore in FY 2023-24 compared to ₹1.99 crore in FY 2022-23.