Popular Vehicles & Services IPO to open on March 12; check price band and other details.


The initial public offering (IPO) of Popular Vehicles & Services is set to open for subscription on Tuesday, March 12. The issue will b sold in the price band of Rs 280-295 per share.

Investors can bid for a minimum of 50 equity shares and its multiples thereafter. The three-day bidding for the issue will conclude on Thursday, March 14.

Popular Vehicles and Services is engaged in the business of automobile dealerships in India. Incorporated in 1983, it provides complete services throughout the life cycle of vehicle ownership, including sales of new and preowned vehicles, servicing, spare parts distribution, driving schools, and third-party financial and insurance product sales.

The IPO includes a sale of fresh equity shares worth Rs 250 and an offer-for-sale (OFS) of up to 1,19,17,075 equity shares by BanyanTree Growth Capital LLC. At the upper end of the price band, the company is looking to raise a total of Rs 601.55 crore. Anchor book for the issue will open on Monday, March 11.

The net proceeds from the issue would be utilised towards repayment and/or pre-payment, in full or part, of certain borrowings, availed by the company and certain of the subsidiaries and general corporate purposes. However, the proceeds from the issue would go to the selling shareholders.

Popular Vehicles operates through a vast network consisting of 59 showrooms, 126 sales outlets, and booking offices, 31 pre-owned vehicle showrooms and outlets, 134 authorised service centers, 40 retail outlets, and 24 warehouses across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu, and 7 districts in Maharashtra.

In FY23, Popular Vehicles serviced 791,360 vehicles - 5,212 luxury, 163,013 commercial, 1,918 electric two-wheeler, and 857 electric three-wheeler vehicles - through 130 authorised service centers across dealerships. The sales outlets and booking offices also facilitate its sales. The retail outlets are responsible for selling and distributing spare parts and accessories.

For the six months ended on September 30, 2023, Popular Vehicles reported a net profit of 40.04 crore and a revenue of Rs 2,848.21 crore. The company clocked a profit of Rs 64.07 crore and a revenue from operations at Rs 4,892.63 crore for the financial year ended on March 31, 2023.

Popular Vehicles & Services has reserved shares worth Rs 1 crore for its eligible employees, who will get a discount of Rs 28 per share. It has reserved 50 per cent of the net offer for qualified institutional investors (QIBs), 15 per cent for non-institutional investors (NIIs) and per cent of the net issue reserved for retail investors.

ICICI Securities, Nuvama Wealth Managementand Centrum Capital are the book running lead managers of the Popular Vehicles & Services IPO, while Link Intime India is the registrar for the issue. Shares of the company are likely to be listed on both BSE and NSE on Tuesday, March 19.

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