Insights into Popular Vehicles & Services IPO

The Banyantree-backed Popular Vehicles & Services Ltd is coming up with an IPO of ₹601.55 crore. The book-built IPO is a mix of fresh issue of 0.85 crore shares aggregating to ₹250.00 crore and an offer for sale of 1.19 crore shares aggregating to ₹351.55 crore.

Popular Vehicles & Services’ IPO will open for subscription on March 12, 2024, and close on March 14, 2024. The basis of allotment for the IPO is to be finalized on March 15, 2024. The company will be listed on BSE and NSE with a listing date of March 19, 2024.

Popular Vehicles & Services IPO price band has been decided at ₹280 to ₹295 per share. The investors are required to subscribe for a minimum of one lot having a size of 50 Shares. The minimum amount of investment for the IPO is ₹14,750.

The book-running lead managers of the IPO are ICICI Securities Limited, Nuvama Wealth Management Limited and Centrum Capital Limited, while Link Intime India Private Ltd is the registrar for the issue.

Fundamental and Operational Aspects

Popular Vehicles & Services Ltd is a diversified automobile dealership in India. The company 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, facilitating the sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products. During FY 2023, Popular Vehicles & Services Limited’s revenue rose by ~40.42% and profit after tax (PAT) rose by ~90.31%.

The company’s network included 30 showrooms, 84 sales outlets, and booking offices for the sale of new passenger cars; 21 showrooms, 44 sales outlets, and booking offices for the sale of commercial vehicles; 85 authorized service centers for the maintenance and repair of passenger cars; 44 authorized service centers for the maintenance and repair of commercial vehicles; and 10 dedicated showrooms, 22 sales outlets, and booking offices for the sale of pre-owned passenger cars as of December 31, 2023.

Why Invest in Popular Vehicles & Services IPO?

• The company holds a long-standing presence in the automobile industry and well-established relationships with leading OEMs.
• Intense penetration in markets in which it operates, complemented by innovative marketing strategies
• The company operates a fully integrated business model, leading to business stability and higher margins.
• Consistent track record of profitable financial performance and increasing growth

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.