Popular Vehicles and Services Limited are India’s largest diversified automotive dealership In terms of revenue, with an existence throughout the automotive retail value chain. Popular Vehicles and Services IPO will hit the market in October 2021.
Table of Contents
About
Popular Vehicles and Services Limited serve in segments such as new passenger and commercial vehicle sales, assistance and repairs, spare parts delivery, pre-owned passenger vehicle sales, and the coordination of third-party financial and insurance product sales.
They run Maruti Suzuki India Limited (“Maruti Suzuki”), Honda Cars India Limited (“Honda”), and Jaguar Land Rover India Limited (“JLR”) passenger car dealerships, as well as Tata Motors Limited’s commercial vehicle dealership (“Tata Motors (Commercial)”).
Footprints
As of March 31, 2021, They were the sixth biggest passenger vehicle dealership organisation for Maruti Suzuki, the fifth biggest passenger vehicle dealership organisation for JLR, the sixth biggest passenger vehicle dealership organisation for Honda, and the third biggest commercial vehicle dealership organisation for Tata Motors (Commercial).
They serve the entire life-cycle of vehicle ownership as a diversified and completely integrated automotive dealership firm, from running driving schools to selling new vehicles, maintenance and repairing automobiles, supplying spare parts, and supporting the sale or exchange of pre-owned vehicles, as well as the sale of third-party financial and insurance products.
Operation
As of March 31, 2021, we have 59 showrooms, 99 sales outlets and booking offices, 83 authorised service facilities, 29 retail outlets, and 25 warehouses.
These are spread throughout all 14 districts of Kerala, as well as Bengaluru, Mysuru, Mangaluru, Hubballi, Hosapete, Vijayapur, and Shivamoga in Karnataka, and Chennai, Chengalpet, Dharmapuri, Krishnagiri, and Thiruvallur in Tamil Nadu.
Kerala and Tamil Nadu are two of the most important states in terms of passenger car sales in the country.
Kerala and Tamil Nadu contributed 11.50 percent of total passenger car sales and 13.00 percent of domestic commercial vehicle sales in India during the first nine months (9M) of FY 2021.
Subsidiaries
List of subsidiaries of Popular Vehicles and Services Limited:
- Popular Mega Motors (India) Private Limited – (Subsidiary)
- Popular Auto Dealers Private Limited (Subsidiary)
- Popular Auto Works Private Limited (Subsidiary)
- Kuttukaran Cars Private Limited (Subsidiary)
- Vision Motors Private Limited (Step – Down Subsidiary)
- Avita Insurance Broking LLP (Step – Down Subsidiary)
- Kuttukaran Green Private Limited (Step – Down Subsidiary)
Popular Vehicles and Services IPO
Popular Vehicles and Services Limited, headquartered in Cochin has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 150 Crore of Fresh issue and OFS 4,266,666 Equity shares on 05 August 2021.
The Offer includes fresh equity shares of 150 crores and an offer for sell(OFS) of 4,266,666 Equity shares by the promoters.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 1,118.94 | 1,131.16 | 1,211.64 | ||
| Total Revenue | 2,919.25 | 3,180.46 | 3,916.34 | ||
| Profit After Tax | 32.46 | 12.49 | 21.37 | ||
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 25.88 | 25.88 | 3 |
| Financial Year 2020 | 9.96 | 9.96 | 2 |
| Financial Year 2019 | 17.42 | 17.42 | 1 |
| Weighted Average | 19.16 | 19.16 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the Issue
- Excellent expertise in high-volume, high-margin services and repair solutions, resulting in long-term company stability.
- Established ties with top OEMs and a long history in the automobile sector.
- They have deep penetration in the markets they operate in, which is matched with creative marketing concepts.
- Significant presence in the pre-owned passenger car sales market helps to boost margins.
- Client retention and income streams are increased by having a presence throughout the whole life cycle of vehicle ownership.
- Consistent financial performance and increased profitability.
- Excellent capability to spot inorganic and organic development opportunities and seize them.
- Promoters and management team with a lot of expertise.
Popular Vehicles and Services IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to ours. As a result, providing an industry comparison in respect to our Company is not feasible.
Popular Vehicles and Services IPO Details
| IPO Opening Date | October 2021 |
| IPO Closing Date | October 2021 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | 0 |
| Min Order Quantity | 0 |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 150.00 Crore |
| Offer for Sale | 4,266,666 Equity shares |
Popular Vehicles and Services IPO Tentative Date
The Popular Vehicles and Services IPO opening date is October 2021, and the closing date is October 2021. The issue may list in October 2021.
| IPO Open Date | October 2021 |
| IPO Close Date | October 2021 |
| Basis of Allotment Date | October 2021 |
| Initiation of Refunds | October 2021 |
| Credit of Shares to Demat Account | October 2021 |
| IPO Listing Date | October 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimal level of 1 lot, based on availability, for every shareholder. |
Popular Vehicles and Services IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Popular Vehicles and Services IPO.
Popular Vehicles and Services IPO GMP
Popular Vehicles and Services IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 |
Popular Vehicles and Services IPO Review
Popular Vehicles and Services IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of this IPO is good or bad.
Popular Vehicles and Services IPO Risk
- The performance and financial health of the OEMs with whom they have dealership relationships are important to their business operations.
- Shifting economic conditions and a variety of other variables can have a significant negative impact on their operations in the automobile retail industry.
- The impact of the COVID-19 epidemic on their business is unknown and impossible to predict.
- Their profit margins on car sales and related companies are shrinking as a result of increased competition among automobile dealerships through online and offline marketing.
- Pricing regulations issued by their OEMs may have an influence on the margins they generate from their services and repair segment.
Other Threats
- Their capacity to attract, develop, and retain skilled labour while simultaneously minimizing labour expenses is critical to their success.
- Some of their Directors (who are also their Promoters) work in the same industry as theirs, which may put them in direct rivalry with them.
- They may face labour unrest, slowdowns, and higher pay expenses, all of which might harm their firm.
- Their incapacity or failure to maintain optimal inventory levels, as well as any inventory theft, may have a negative impact on their business.
- The value, perception, and marketing of their brands determine their success.
- Their company, subsidiaries, promoters, and directors are all involved in ongoing legal procedures.
Popular Vehicles and Services IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Popular Vehicles and Services IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| October 2021 | 1 | |||||
| October 2021 | 2 | |||||
| October 2021 | 3 |
Promoters
- John K. Paul
- Francis K. Paul
- Naveen Philip
Promoters Holding
| Pre Issue Share Holding | 65.79% |
| Post Issue Share Holding |
Popular Vehicles and Services IPO Prospectus
Contact Details
Popular Vehicles and Services Limited
Kuttukaran Centre, Mamangalam, Cochin,
Ernakulam 682 025, Kerala, India
Tel: +91 484 2341 134
E-mail: [email protected]
Website: www.popularmaruti.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai 400 083 Maharashtra
Tel: (+91 22) 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Axis Capital Limited
- DAM Capital Advisors Limited
- Centrum Capital Limited
We hope we are able to answer all your questions about this IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Cartrade IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Cartrade IPO of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Popular Vehicles and Services IPO Opening Date?
Popular Vehicles and Services IPO will open in October 2021.
Popular Vehicles and Services IPO Allotment Date?
Popular Vehicles and Services IPO Allotment Date is October 2021.
Popular Vehicles and Services IPO Listing Date?
Popular Vehicles and Services IPO Listing date is October 2021
Popular Vehicles and Services IPO GMP Today?
Popular Vehicles and Services IPO Grey Market Premium is INR 0.
Popular Vehicles and Services IPO Price Band?
Popular Vehicles and Services IPO price Band is 0 to 0.
