Voler Car Ltd, a prominent provider of employee transportation services (ETS) in India, has announced its Initial Public Offering (IPO) to raise funds for expansion and operational needs. The IPO is scheduled to open on February 12, 2025, and close on February 14, 2025.

Company Overview

Established in 2010, Voler Car Ltd specializes in offering comprehensive home-to-office-to-home transportation solutions for IT/ITeS companies, large corporations, and multinational clients across major Indian cities, including Kolkata, Mumbai, Pune, Bhubaneshwar, Delhi-NCR, and Ahmedabad. The company operates an asset-light model, managing a fleet of over 2,500 vehicles—ranging from small cars and sedans to SUVs, electric vehicles, buses, and tempo travelers—primarily sourced from vendors. This approach allows Voler Car to optimize revenue by enhancing seat utilization and overall employee mobility.

IPO Timeline

• Issue Opening Date: February 12, 2025
• Issue Closing Date: February 14, 2025
• Basis of Allotment: February 17, 2025
• Initiation of Refunds: February 18, 2025
• Credit of Shares to Demat Accounts: February 18, 2025
• Listing Date: February 19, 2025

Price Band and Lot Size

The IPO is priced between ₹85 and ₹90 per equity share, with a face value of ₹10 each. Investors can bid for a minimum of 1,600 shares per lot, translating to a minimum investment of ₹1,44,000. Bids can be made in multiples of 1,600 shares thereafter.

Issue Size

Voler Car Ltd aims to raise approximately ₹27 crore through the issuance of 30,00,000 equity shares. The proceeds are intended to fund the company’s working capital requirements, general corporate purposes, and cover IPO-related expenses.

Financials

For the fiscal year ending March 31, 2024, Voler Car Ltd reported total revenue of ₹30.90 crore, up from ₹23.96 crore in the previous year. Profit after tax (PAT) for the same period was ₹3.56 crore, an increase from ₹1.99 crore in FY23. The company’s PAT margin improved to 11.53% in FY24 from 8.31% in FY23.

Strengths

• Asset-Light Business Model: By sourcing the majority of its fleet from vendors, Voler Car minimizes capital expenditure and maximizes operational flexibility.
• Comprehensive Service Offering: The company provides end-to-end transportation solutions, ensuring timely pick-ups and drop-offs through strict adherence to service level agreements (SLAs).
• Technological Integration: Utilization of GPS-integrated systems allows for real-time tracking, incident response, and SLA compliance, enhancing service reliability.
• Experienced Management Team: Led by Managing Director Mr. Pawan Parasrampuria, the company benefits from a seasoned leadership team with extensive industry experience.

Risks

• Dependence on Vendor-Sourced Fleet: Reliance on third-party vendors for vehicles may pose operational risks if vendor relationships or supply chains face disruptions.
• Competitive Market: The employee transportation sector is highly competitive, which could impact the company’s market share and profitability.
• Regulatory Challenges: Changes in government regulations or compliance requirements could affect business operations and financial performance.

IPO Anchor Investors Details

As of now, specific details regarding anchor investors for the Voler Car Ltd IPO have not been disclosed.

IPO Promoter Holding

The promoters of Voler Car Ltd are Vikas Parsrampuria, Pawan Parasrampuria, and Shreya Parasrampuria. The pre-issue shareholding of the promoters is 73.93%, which will reduce to 54.03% post-issue.

IPO Grey Market Premium (GMP)

As of February 11, 2025, the Grey Market Premium for Voler Car Ltd’s IPO is ₹11, indicating a premium of approximately 12% over the upper end of the issue price.

Final Thoughts

Voler Car Ltd’s IPO presents an opportunity to invest in a company with a strong presence in the corporate transportation sector. The company’s asset-light model, technological integration, and experienced management team are notable strengths. However, potential investors should carefully consider the associated risks, including dependence on vendor-sourced fleets and market competition, before making an investment decision.