The IPO of Popular Vehicles & Services is a book-built offering valued at Rs 601.55 crores. It comprises a fresh issue of 0.85 crore shares totaling Rs 250.00 crores and an offer for sale of 1.19 crore shares amounting to Rs 351.55 crores.
The subscription for the Popular Vehicles & Services IPO commenced on March 12, 2024, and concluded on March 14, 2024. Allotment of shares for the IPO is anticipated to be completed by Friday, March 15, 2024. The Popular Vehicles & Services IPO is scheduled to be listed on both BSE and NSE, with a tentative listing date set for Tuesday, March 19, 2024.
The price range for the Popular Vehicles & Services IPO is established between ₹280 to ₹295 per share. Retail investors must apply for a minimum of 50 shares, requiring an investment of at least ₹14,750. sNII investors are required to invest in a minimum of 14 lots (700 shares), totaling ₹206,500. For bNII investors, the minimum investment is set at 68 lots (3,400 shares), amounting to ₹1,003,000.
The Offer comprises a Fresh Issue of up to ~ 8474576 Equity Shares, aggregating up to ₹ 250 crore by Company and an Offer for Sale of up to 11917075 Equity Shares aggregating up to ~₹ 351.55 Crore by the Selling Shareholders.
The company will not receive any proceeds from the Offer for Sale.
Objects of the Fresh Issue Our Company proposes to utilize the Net Proceeds towards funding the following objects:
Popular Vehicle & Services IPO Details |
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IPO Date | March 12, 2024 to March 14, 2024 | ||||||||||
Listing Date | March 19, 2024 | ||||||||||
Face Value | Rs. 2 | ||||||||||
Price | ₹280 to ₹295 per share | ||||||||||
Lot Size | 50 shares | ||||||||||
Total Issue Size | Rs. 601.55 crore | ||||||||||
Fresh Issue | 8,474,576 shares (aggregating up to ₹250.00 Cr) | ||||||||||
Offer for Sale | 11,917,075 shares of ₹2 (aggregating up to ₹351.55 Cr) | ||||||||||
Issue Type | Book Built Issue IPO | ||||||||||
Listing At | NSE, BSE | ||||||||||
Share holding pre issue | 62,721,445 | ||||||||||
Share holding post issue | 71,196,021 |
Popular Vehicle & Services IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 50 | ₹14,750 | ||||||||
Retail (Max) | 13 | 650 | ₹191,750 | ||||||||
S-HNI (Min) | 14 | 700 | ₹206,500 | ||||||||
S-HNI (Max) | 67 | 3,350 | ₹988,250 | ||||||||
B-HNI (Min) | 68 | 3,400 | ₹1,003,000 |
Popular Vehicle & Services IPO Timeline (Tentative Schedule) |
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IPO Open Date | Tuesday, March 12, 2024 | ||||||||||
IPO Close Date | Thursday, March 14, 2024 | ||||||||||
Basis of Allotment | Friday, March 15, 2024 | ||||||||||
Initiation of Refunds | Monday, March 18, 2024 | ||||||||||
Credit of Shares to Demat | Monday, March 18, 2024 | ||||||||||
Listing Date | Tuesday, March 19, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on March 14, 2024 |
Popular Vehicle & Services IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
QIB Shares Offered | Not more than 50% of the Net Issue | ||||||||||
Retail Shares Offered | Not less than 35% of the Net Issue | ||||||||||
NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Popular Vehicle & Services IPO Promoter Holding |
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Share Holding Pre Issue | 65.79% | ||||||||||
Share Holding Post Issue | 57.95% |
Popular Vehicle & Services IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
Popular vehicle and services are a diversified automobile dealership in India. It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.
Automobile dealership business is divided into three key segments:
(c) Electric two-wheeler and three-wheeler vehicles:
In Fiscal 2023, passenger vehicle sales in India were concentrated in a few major states. The top 5 states are Maharashtra, Uttar Pradesh, Gujarat, Karnataka, and Tamil Nadu cumulatively contributed to more than 40.00% of national sales.
As of 31st Dec’23, company has a network of 61 showrooms, 133 sales outlets and booking offices, 32 pre-owned vehicle showrooms and outlets, 139 authorized service centers, 43 retail outlets, and 24 warehouses located across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu and 9 districts in Maharashtra.
The company has acquired 11 service centers and 2 showrooms from a dealer of Maruti Suzuki in Kerala in 2021. Further, it acquired 8 showrooms, 17 service centers and 3 sales outlets and booking offices of Bharat Benz in Tamil Nadu and Maharashtra.
Services and Repairs: Services, repairs, and maintenance under each of dealerships include work undertaken during warranty period, outside warranty period paid by the customer, running repair and collision repair services.
Pre-Owned Vehicles: It deals in the exchange, acquisition and sale of pre-owned passenger vehicles across vehicle dealerships.
Spare Parts and Accessories Distribution: Spare parts and accessories distribution business was operated through 69 touch points comprising of 2 multi-brand pre-owned vehicle retail outlet under the brand name ‘Kartrenz’, 43 retail outlets and 24 warehouses across Kerala and Karnataka.
Facilitating the Sale of Third-party Financial and Insurance Products: Sale of various third-party finance and insurance products in relation to the vehicles sold by them, extended warranty and maintenance contracts, as well as replacement and aftermarket services for automobile products.
Driving Schools: Setting up the first driving school in Ernakulam in the year 2006. Over the years, they expanded their network of driving schools by setting up a total of 7 driving schools across Kerala.
The automobile industry is one of the primary contributors to the Indian economy. Its contribution to India’s GDP has increased from 2.80% in Fiscal 1993 to approximately 7.10% in Fiscal 2023. India’s domestic automobile market is one of the largest automobile markets in the world, with annual domestic sales of over 20 million vehicles in Fiscal 2023.
In Fiscal 2023, domestic automobile industry was dominated by the two-wheeler vehicle sub-segment which contributed more than 70.00% to the overall automobile industry, followed by passenger vehicles contributing 18.00% of automobile sales volume in Fiscal 2023.
Tractors, commercial vehicles, and three-wheeler vehicles contributed the rest 10.00%. With the growth of the automobile industry, we have achieved significant organic growth in our revenue from sales over the past three Fiscals.
Risk:-
Period Ended | 30th Sep 2023 | 31st Mar 2023 | 31st Mar 2022 | 31st Mar 2021 |
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Reserve of Surplus | 371.667 | 330.5 | 267.342 | 233.458 |
Total Assets | 1941.776 | 1503.78 | 1263.288 | 1118.936 |
Total Borrowings | 764.613 | 505.006 | 371.91 | 353.042 |
Fixed Assets | 311.388 | 301.261 | 258.733 | 241.729 |
Cash | 34.715 | 28.16 | 20.352 | 59.4 |
Net Borrowing | 729.898 | 476.846 | 351.558 | 293.642 |
Revenue | 2834.997 | 4875.002 q | 3465.879 | 2893.525 |
EBITDA | 145.909 | 234.846 | 178.663 | 174.853 |
PAT | 40.044 | 64.074 | 33.669 | 32.455 |
EPS | 6.38 | 10.22 | 5.37 | 5.17 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 10.22 | ||||||||||
EPS Post IPO (Rs.) | 11.25 | ||||||||||
P/E Pre IPO | 28.88 | ||||||||||
P/E Post IPO | 26.22 | ||||||||||
ROE | 18.68 | ||||||||||
ROCE | 18.32% | ||||||||||
P/BV | 4.82 | ||||||||||
Debt/Equity | 1.47 | ||||||||||
RoNW | 18.32% |
Popular Vehicle & Services Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Landmark Cars Ltd | 17.3 | 20.1% | 25.2% | 41.0 | 5.97 | 1.16 | 20.1% | ||||
Popular Vehicle & Services Limited | 10.22 | 18.32% | 18.68% | 28.88 | 4.82 | 1.47 | 18.32% |
POPULAR VEHICLES AND SERVICES LIMITED
Kuttukaran Centre, Mamangalam, Cochin, Ernakulam 682 025, Kerala, India
Email: cs@popularv.com
Tel: +91 484 2341 134
Website: www.popularmaruti.com
Link Intime India Pvt. Ltd.
Address: C - 101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West,
Mumbai 400 083, Maharashtra, India
Phone: +91-22-4918 6270
Email: popularvehicles.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Popular Vehicles & Services Ltd. (PVSL), a leading Indian automobile dealership, offers a complete range of services from vehicle sales to maintenance, spare parts distribution, and pre-owned vehicle sales. With consistent revenue growth over the past three fiscal years, PVSL recorded a net profit of Rs. 64.07 cr. in FY23. Notably, H1 of FY24 saw further growth with a net profit of Rs. 40.04 cr. The IPO is priced at a P/BV of 4.82 based on NAV of Rs. 61.26 and 3.54 post-IPO NAV of Rs. 83.30. PVSL operates across four states with 400 touch points, positioning it as a diversified leader in the industry. Considering its solid financial performance, the IPO seems reasonably valued based on FY24 earnings.
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