Popular Vehicles & Services Limited, a leading automobile dealership in India, launched its initial public offering (IPO) today, March 12, 2024. Here are all the key details you should before investing in Popular Vehicles & Services IPO:
About Popular Vehicles & Services
Popular Vehicles & Services Limited is a major automobile dealership group in India. They operate under the Kuttukaran Group and deal in both passenger and commercial vehicles.
Here is a quick overview of their business:
- Services:Â They sell new cars and also provide after-sales services and possibly used car sales through Popular Used Cars.
- Dealerships:Â Popular Vehicles has a presence across Kerala, Tamil Nadu and Karnataka with dealerships in major cities like Kochi and Chennai.
- Brand Partnerships:Â Their focus seems to be on Maruti Suzuki dealerships, with recognition from Maruti Suzuki for their performance.
Overall, Popular Vehicles & Services operates as a full-fledged auto dealership group, catering to car sales, service, and potentially used car segments.
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Objective of IPO
- Repayment/Prepayment of Debt: A significant portion of the funds will be directed towards repaying or prepaying loans availed by the company and some of its subsidiaries. This will help improve their financial health by reducing their debt burden and interest expenses.
- General Corporate Purposes: The remaining funds will be used for various general corporate purposes. This might include investments in:
Expansion: Opening new dealerships or service centers in existing or new markets.
Brand Building: Marketing initiatives to strengthen their brand presence and attract new customers.
Technology Upgradation: Investing in IT infrastructure or digital platforms to enhance their customer service and operational efficiency.
Popular Vehicles & Services IPO Details
- Issue Size: ₹601.55 crore
- Price Band: ₹280 – ₹295 per share
- Offer Type:Â Book Building
- Fresh Issue: ₹250 crore
- Offer for Sale (OFS): ₹351.55 crore
- Lot Size:Â 50 Shares
- Listing Exchange:Â BSE and NSE
Popular Vehicles & Services IPO Important Dates:
- Open Date:Â March 12, 2024
- Close Date:Â March 14, 2024
- Allotment of Shares: March 15, 2024
- Refunds Initiated: March 18, 2024
- Demat Account Credit & Listing: March 19, 2024
Popular Vehicles & Services IPO Market Lot
The Popular Vehicles & Services IPO has a minimum lot size of 50 shares with a total application amount of ₹14,750. The retail investors can apply up-to 13 lots with 650 shares or ₹191,750.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 50 | ₹14,750 |
| Retail Maximum | 13 | 650 | ₹191,750 |
| S-HNI Minimum | 14 | 700 | ₹206,500 |
| B-HNI Minimum | 68 | 3400 | ₹1,003,000 |
Popular Vehicles IPO: Good or bad for investors?
Financial Performance
| Period Ended (Amount in ₹ Crore) | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,941.78 | 1,503.78 | 1,263.29 | 1,118.94 |
| Revenue | 2,848.21 | 4,892.63 | 3,484.20 | 2,919.25 |
| Profit After Tax | 40.04 | 64.07 | 33.67 | 32.46 |
| Net Worth | 384.21 | 343.04 | 279.89 | 246.00 |
| Reserves and Surplus | 371.67 | 330.50 | 267.34 | 233.46 |
| Total Borrowing | 764.61 | 505.01 | 371.91 | 353.04 |
| Particulars | FY23 | FY22 | FY21 |
| Total Assets | 150.38 | 126.33 | 111.89 |
| Share Capital | 12.54 | 12.54 | 12.54 |
| Total Borrowings | 505.01 | 371.91 | 353.04 |
Popular Vehicles & Services IPO Experts Review
1. BP Equities said about Popular Vehicles’ IPO:
- Financials are growing well:Â Popular Vehicles’ revenue, profitability (EBITDA), and net profit (PAT) have all been increasing at a healthy rate over the past 3 years.
- Price seems fair:Â Based on their earnings, BP Equities thinks the price of the IPO is reasonable (valued at a P/E of 28.9).
- Recommendation:Â Because of the good financials and fair price, BP Equities recommends subscribing to the IPO (which means buying).
2. Ventura Securities likes this IPO! Here’s why:
- Popular Vehicles isn’t just about selling regular cars. They deal in a variety of vehicles, including luxury cars, commercial vehicles, and even electric two-wheeler and three-wheeler options!
- They have a huge network across India with showrooms, sales outlets, service centers, and warehouses. This means they can easily reach and serve a lot of customers in different regions.
- In total, they have a whopping 59 showrooms, 126 sales points, and over 130 service centers! That’s a lot of places to get your car serviced or browse for a new one.
- Because of the above reasons, Ventura Securities thinks Popular Vehicles is a good investment opportunity and recommends subscribing to the IPO (buying shares).
Important to remember: This is just one analyst’s opinion. It’s always a good idea to do your own research before investing in any IPO.
Source: livemint
Disclaimer: Investors can consider consulting financial advisors for personalized recommendations before investing in the IPO. Additionally, in-depth research of the company’s prospectus and news articles about Popular Vehicles & Services IPO will provide valuable insights for informed decision-making.
