NSE SME Stock Secures 2 Major Service Contracts After Flat Listing On D-Street

Voler Car Limited, an incorporation in the Indian sphere of construction and engineering, has secured two landmark deals which will boost the purchasing power of the company and further bolster its growth plans. These strategic deals are expected to unlock substantial revenue inflows on a monthly basis which will allow the company to widen its operational reach in important regions.

As part of a recent filing with the exchange, Voler Car reported a new contract with Motherson Air Travel Agencies Ltd for employment in the Bihar region which is expected to generate revenue worth ₹3 crores per month. As part of this deal, the company shall mobilise a minimum of 500 vehicles to this region with the plans to scale the fleet in line with performance and changing business requirements. This initiative is anticipated to support the company's efforts in servicing the emerging need for dependable employee transportation in the region.

In addition to the Bihar contract, Voler Car has won a new service contract with Teleperformance Global Business Pvt Ltd for the Noida region. The expected revenue of this agreement is over ₹25 lakhs every month. The contract also has room for expansion depending on the performance of the contract and the operational needs. This venture propels Voler Car further into the Delhi-NCR market, which is a big milestone for the company.

"Such changes are part of our expansion plans, which include sharp growth in other important markets and increased service availability for major business customers. The company continues to provide the highest quality employee shuttle services and supports sustainable development with best-in-class asset-light solutions," Voler Car commented in the exchange filing.

After this announcement, Voler Car's stock showed some volatility in Thursday trading. The share price opened at an intraday high of ₹93 a piece on the NSE before sinking to a low of ₹88 a share.

The IPO of Voler Car was opened on Feb 12 and closed on Feb 14, with the price range set at ₹85 to ₹90 for every equity share. The IPO received high participation from investors and recorded an oversubscription of 13.62 times on the last day of bidding. The offering did not comprise any Offer for Sale and was solely a fresh issue of 30,00,000 equity shares for ₹27 crore. In the case of IPO, 50 percent was reserved for Qualified Institutional Buyers (QIB), 35 percent for retail participants, and 15 per cent for Non-Institutional Investors (NII).

Founded in 2010, Voler Car Limited concentrates on offering reliable and effective employee transport services to multinational companies as well as large corporate clients. Their services include full transportation from home to office and back, supported by personal managers and operational teams available round the clock. Voler Car has a fleet of over 2500 vehicles comprising cars, SUVs, electric vehicles, buses, and tempo travellers.

The company's service achievements in the fiscal year 2023-24 were roughly 3,23,550 trips, which breaks down to over 884 visits a day on average. Voler Car services the metropolitan areas of Kolkata, Mumbai, Pune, Bhubaneswar, Delhi-NCR, and Ahmedabad using a mix of vendor-owned and leased vehicles for timely pick-ups and drop-offs which is mandated by strict Service Level Agreements (SLA).

The company combines GPS technology with other systems, which allows the company to effectively manage travel activities like booking, monitoring, responding to incidents, and even meeting client service level agreements within one system.

The latest contracts highlight Voler Car's effort towards increasing penetration in key markets without putting significant resources into the business as they tries to grow sustainably. Wise Travel India Ltd, whose P/E ratio is 14.07, and Shree OSFM E-Mobility Ltd, whose P/E ratio is 16.77, are among specific competitors noted by the company within their Red Herring Prospectus (RHP).

By maintaining operational and technology integration and further developing strategic alliances, Voler Car is positioned to retain its market leadership in employee transportation services and continue creating customer and stakeholder value.