Popular Vehicle & Services IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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:

    • Repayment and/or pre-payment, in full or part, of certain borrowings, availed by Company and certain Subsidiaries, namely, PAWL, PMMIL, KGPL, KCPL and PMPL.
    • General corporate purposes.

Popular Vehicle & Services IPO Details

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

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)

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

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

Share Holding Pre Issue 65.79%
Share Holding Post Issue 57.95%

Popular Vehicle & Services IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About Popular Vehicle & Services Limited

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:

  1. Passenger Vehicles including Luxury Vehicles: -
  1. Maruti Suzuki
  • Arena
  • Nexa
  1. Honda
  2. Jaguar Land Rover India Limited
  1. Commercial Vehicles:
  1. Tata Motors Limited
  2.  Daimler India Commercial Vehicles Private Limited (“BharatBenz”)

(c) Electric two-wheeler and three-wheeler vehicles:

  1. Piaggio Vehicles Private Limited,
  2. Ather Energy Private Limited

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:-

  1. Popular Vehicles and Services has listed the introduction of modern technologies for new vehicles, such as autonomous driving systems, changes in emission norms and ban on diesel vehicles in major cities in India as key risk factors.
  2. The automotive industry is sensitive to changing economic conditions and various other factors. Any decline in demand for vehicles by individuals or entities may adversely impact its business prospects and results of operations.
  3. The company is subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of dealership agreements. Non-renewal or termination or to require adverse material modifications of dealership agreements with its OEMs or any adverse material modifications made by its OEMs thereto, will have a material and adverse impact on its business prospects and results of operations.
  4. A large portion of its business operations are concentrated in the states of Kerala, Tamil Nadu and Karnataka. Any adverse developments in these states could have an adverse effect on its business, results of operations and financial condition.
  5. A large portion of our business revenue is derived from our dealership of Maruti and Tata Motors (Commercial). Any adverse developments in the growth, demand or sales for these OEMs could have an adverse effect on its business, results of operations and financial condition.
  6. Increasing competition among automotive dealerships through online and offline marketing reduces its profit margins on vehicle sales and related businesses.
  7. Its vehicle sales are impacted by the incentive, marketing, and other programs of the OEMs. Further, any adverse impact on its sales directly impacts on its profit margins and adversely affects our financial conditions and results of operations.
  8. Margins earned from its services and repair vertically, and its spare parts and accessories distribution vertical may be impacted by pricing guidelines set by our OEMs which may adversely affect its financial condition and results of operations.

Popular Vehicle & Services Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore.)

Period Ended 30th Sep 2023 31st Mar 2023 31st Mar 2022 31st Mar 2021
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

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

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 Vehicle & Services Limited Contact Details

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

Popular Vehicle & Services IPO Registrar and Lead Manager(s)

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
Websitehttps://linkintime.co.in/initial_offer/public-issues.html

Popular Vehicle & Services IPO Review

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.

Services

Option Trading with CA Abhay

FNO Stocks with CA Abhay

Equity Investment with CA Abhay

Stock Market Masterclass

Equity Trading with CA Abhay

onlyfans leakedonlyfan leaksonlyfans leaked videos