Popular Vehicles & Services is set to launch its Initial Public Offering (IPO) on March 12, 2024, with the closing date on March 14, 2024. The company aims to raise approximately ₹601.55 crores through the IPO, consisting of a fresh issue of ₹250 crores and an offer for sale of up to 11,917,075 equity shares priced at ₹2 each. The IPO allocation includes a 35% retail quota, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI).
Popular Vehicles & Services is a prominent diversified automobile dealership in India, holding a leading position in terms of revenue as of Fiscal 2023, according to a CRISIL Report. The company operates in various segments, including passenger vehicles (economy, premium, and luxury), commercial vehicles, and electric two-wheeler and three-wheeler vehicles.
The company’s revenue streams are derived from the complete life cycle of vehicle ownership, spanning the sale of new vehicles, servicing, repairing, distributing spare parts, facilitating the sale and exchange of preowned vehicles, operating driving schools, and offering third-party financial and insurance products.
In recent years, Popular Vehicles has expanded its footprint through strategic acquisitions, such as acquiring service centers and showrooms from a Maruti Suzuki dealer in Kerala and showrooms, service centers, and sales outlets of BharatBenz in Tamil Nadu and Maharashtra.
The IPO proceeds will be utilized for the repayment or pre-payment of certain borrowings and for general corporate purposes.
**Key Details of the IPO:**
– **IPO Open:** March 12, 2024
– **IPO Close:** March 14, 2024
– **IPO Size:** Approximately ₹601.55 Crores
– **Fresh Issue:** Approximately ₹250 Crores
– **Offer for Sale:** Approximately 11,917,075 Equity Shares
– **Face Value:** ₹2 Per Equity Share
– **IPO Price Band:** ₹280 to ₹295 Per Share
– **Listing on:** BSE & NSE
– **Retail Quota:** 35%
– **QIB Quota:** 50%
– **NII Quota:** 15%
**Market Lot Details:**
– **Minimum Market Lot:** 50 shares with ₹14,750 application amount
– **Retail Investors:** Can apply up to 13 lots with 650 shares or ₹191,750 amount
**Allotment & Listing Dates:**
– **IPO Allotment Finalization:** March 15, 2024
– **Refunds:** March 18, 2024
– **Credit to Demat Account:** March 18, 2024
– **IPO Listing Date:** March 19, 2024
**Financial Performance (FY2023):**
– **Revenue:** ₹4892.62 Crores
– **Expense:** ₹4807.76 Crores
– **PAT (Profit After Tax):** ₹64.07 Crores
**Valuation (FY2023):**
– **Earning Per Share (EPS):** ₹10.22 per Equity Share
– **Price/Earning P/E Ratio:** N/A
– **Return on Net Worth (RoNW):** 18.68%
– **Net Asset Value (NAV):** ₹54.69 per Equity Share
**Peer Group:**
– **Landmark Cars Limited**
**Company Promoters:**
– John K. Paul
– Francis K. Paul
– Naveen Philip
Investors can apply for the Popular Vehicles & Services IPO via ASBA in their bank accounts or through IPO forms downloaded from NSE and BSE. The IPO subscription status and allotment status can be checked on the respective platforms.
Brokerage firms are yet to provide reviews on the IPO, and investors are advised to stay updated on this information before making investment decisions.
