IPO Launch Date, Evaluation, Pricing, and Allocation Particulars of Popular Vehicles & Services

Details of the IPO for Popular Vehicles & Services have been confirmed, with the IPO scheduled to debut on March 12 and conclude on March 14. Popular Vehicles & Services aims to raise approximately ₹601.55 crores through the IPO, consisting of a fresh issue of ₹250 crores and an offer for sale of up to 11,917,075 equity shares priced at ₹2 each. The allocation breakdown is as follows: 35% for retail investors, 50% for qualified institutional buyers (QIB), and 15% for high net worth individuals (HNI).

Popular Vehicles & Services stands as a prominent diversified automobile dealership in India, boasting substantial revenue as of Fiscal 2023, according to the CRISIL Report. Operating on a fully integrated business model, they cover the entire spectrum of vehicle ownership, from new vehicle sales, servicing, and repairs, to spare parts and accessories distribution, preowned vehicle sales and exchanges, driving schools, and facilitating the sale of third-party financial and insurance products. Their automobile dealership business is segmented into three primary categories: (a) passenger vehicles, encompassing economy, premium, and luxury vehicles; (b) commercial vehicles; and (c) electric two-wheeler and three-wheeler vehicles. In Fiscal 2023, revenue from operations amounted to ₹30,143.51 million for passenger vehicles, ₹15,702.54 million for commercial vehicles, and ₹559.05 million for electric vehicles.

They manage passenger vehicle dealerships offering economy, premium, and luxury vehicles for Maruti Suzuki India Limited (both Arena and Nexa), Honda Cars India Limited (through their subsidiary, VMPL), and Jaguar Land Rover India Limited (through their subsidiary, PAWL). Additionally, they operate commercial vehicle dealerships for Tata Motors Limited (through their subsidiary, PMMIL) and Daimler India Commercial Vehicles Private Limited (BharatBenz, through their subsidiary, PMPL). Moreover, their portfolio includes electric vehicle dealerships for Piaggio Vehicles Private Limited (including commercial and cargo vehicles, through their subsidiary, KGPL) and Ather Energy Private Limited (electric two-wheelers, through their subsidiary, KCPL). Their extensive presence across vehicle categories, spanning passenger vehicles, commercial vehicles, and electric two-wheelers and three-wheelers, enhances the diversification of their revenue streams.

Popular Vehicles & Services IPO Details

IPO Date March 12, 2024 to March 14, 2024
Listing Date March 19, 2024
Face Value ₹2 per share
Price Band ₹280 to ₹295 per share
Lot Size 50 Shares
Total Issue Size 20,395,205 shares (aggregating up to ₹601.55 Cr)
Fresh Issue 8,478,130 shares (aggregating up to ₹250.00 Cr)
Offer for Sale 11,917,075 shares of ₹2 (aggregating up to ₹351.55 Cr)
Employee Discount Rs 28 per share
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue 62,721,445
Share holding post issue 71,199,575

Popular Vehicles & 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

Key Performance Indicator

KPI Values
ROE 10.42%
ROCE 8.83%
Debt/Equity 1.99
RoNW 10.42%
P/BV 4.82
PAT Margin (%) 1.41

Objects of the Issue (Popular Vehicles & Services IPO Objectives)

The company proposes to utilise the Net Proceeds towards funding the following objects:

  1. Repayment and/or pre-payment, in full or part, of certain borrowings, availed by the company and certain of the subsidiaries, namely, VMPL, PAWL, PMMIL, KGPL, KCPL and PMPL and; 
  2. General corporate purposes.

Popular Vehicles & Services IPO Review (Apply)

Despite operating in four states, the company boasts an extensive network of over 400 touchpoints, positioning it as a leader in its segment, especially with its partnership with the prominent Indian player Maruti. The company remains committed to optimizing its product mix to enhance its profitability. While the valuation of the offering seems comprehensive based on FY24 annualized earnings, it merits consideration for potential medium to long-term benefits.

Popular Vehicles & Services Limited Financial Information (Restated Standalone)

Popular Vehicles & Services Limited’s revenue increased by 40.42% and profit after tax (PAT) rose by 90.31% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended 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
Amount in ₹ Crore

Popular Vehicles & Services Company Financial Report

₹ in Crores
Year Revenue Expense PAT
2021 ₹2,919.25 ₹2,872.00 ₹32.46
2022 ₹3,484.20 ₹3,435.65 ₹33.67
2023 ₹4,892.62 ₹4,807.76 ₹64.07
Sep 2023 ₹2,848.21 ₹2,795.94 ₹40.04

Company Promoters

  • John K. Paul
  • Francis K. Paul 
  • Naveen Philip