Popular Vehicles and Services is into Automobile Auto-Dealer and is looking raise funds through Fresh Issue and Offer For Sale
Popular Vehicles and Services IPO is a public offering of shares by John K. Paul, Francis K. Paul and Naveen Philip. The IPO will open on March 12 and will close on March 14. The price band is ₹280 to ₹295 per share and the lot size is 50 shares. The issue size is ₹601.55 crore. The shares are expected to be listed on NSE, BSE on March 19 (^). Some additional information that you may find useful are: Company operate (a) passenger vehicle dealerships covering economy, premium and luxury vehicles across dealerships for the following OEMs: (i) Maruti Suzuki India Limited (“Maruti Suzuki”) for both Arena and Nexa, through the Company,(ii) Honda Cars India Limited (“Honda”)through Subsidiary, VMPL, and (iii) Jaguar Land Rover India Limited (“JLR”)through Subsidiary, PAWL; (b) commercial vehicle dealerships of (i) Tata Motors Limited (“Tata Motors (Commercial)”), through Subsidiary, PMMIL and (ii) Daimler India Commercial Vehicles Private Limited (“BharatBenz”), through Subsidiary, PMPL; and (c) electric three-wheeler vehicle dealership of Piaggio Vehicles Private Limited, including commercial and cargo vehicles (“Piaggio”), through Subsidiary, KGPL and electric two-wheeler vehicle dealership of Ather Energy Private Limited (“Ather”), through Subsidiary, KCPL.: (**) - based on higher price band (^) indicative date
Key Pointers of Popular Vehicles and Services IPO:
Promoters of the company are John K. Paul, Francis K. Paul and Naveen Philip Currently promoters hold 69.45% stake in the company. While post-equity promoters stake will be 61.18%
Company has not undertaken Pre-IPO placement.
- Company aims to raise between Rs 584 to 602 crs through this IPO.
- The net proceeds of the issue will be utilized to 1) Repayment and/or pre-payment, in full or part of borrowings by the company and its subsidiaries - Rs. 192 cr. and 2) General Corporate Purpose
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 11-Mar-24.
- Price band for the IPO has been fixed at Rs 280 to 295 per share and bid lot are in multiple of 50 shares. The implied market cap post-issue at Rs 2,006 to 2,100 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on March 15 and share are expected to be listed on NSE, BSE on March 19.
- Company has direct peer competition in India'a Automobile dealership segment. In Listed space peer include Landmark Cars.
- ICICI Securities, Nuvama Wealth Management, Centrum Capital has been appointed as Merchant Banker to the issue. Link Intime (India) Pvt. Ltd. has been appointed as official registrar of the issue.
About Popular Vehicles and Services Limited
Popular Vehicles and Services LimitedIncorporated in 1983, Popular Vehicles and Services is diversified automobile dealership group in South and West India. It cater to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories. Company is also facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitatingthe sale of third-party financial and insurance products.
Company's automobile dealership business is divided into three key segments, (a) Passenger Vehicles including Luxury Vehicles, (b) Commercial Vehicles and (c) Electric two-wheeler and three-wheeler Vehicles. As on July 2023, company and its subsidiaries operate through network of 59 showrooms, 126 sales outlets and booking offices, 31 pre-owned vehicle showrooms and outlets, 134 authorised service centres, 40 retail outlets, and 24 warehouses located across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu and 7 districts in Maharashtra.
Company operate (a) passenger vehicle dealerships covering economy, premium and luxury vehicles across dealerships for the following OEMs: (i) Maruti Suzuki India Limited (“Maruti Suzuki”) for both Arena and Nexa, through the Company,(ii) Honda Cars India Limited (“Honda”)through Subsidiary, VMPL, and (iii) Jaguar Land Rover India Limited (“JLR”)through Subsidiary, PAWL; (b) commercial vehicle dealerships of (i) Tata Motors Limited (“Tata Motors (Commercial)”), through Subsidiary, PMMIL and (ii) Daimler India Commercial Vehicles Private Limited (“BharatBenz”), through Subsidiary, PMPL; and (c) electric three-wheeler vehicle dealership of Piaggio Vehicles Private Limited, including commercial and cargo vehicles (“Piaggio”), through Subsidiary, KGPL and electric two-wheeler vehicle dealership of Ather Energy Private Limited (“Ather”), through Subsidiary, KCPL.
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About Industry
The automobile industry is one of the primary contributors to the Indian economy. It has grown by leaps and bounds over the years. Its contribution to India’s GDP has increased from 2.8% in fiscal 1993 to approximately 7.10% currently. The sector employs over 19 million people directly and indirectly. India is one of the largest auto markets in the world, with annual domestic sales of over 20 million vehicles. Domestic automobileindustry is dominated by the two-wheeler segment which contributes more than 70% to the automobileindustry, followed by passenger vehicles and other vehicles.
| Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data |
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Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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