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.
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 |
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 |
KPI | Values |
---|---|
ROE | 10.42% |
ROCE | 8.83% |
Debt/Equity | 1.99 |
RoNW | 10.42% |
P/BV | 4.82 |
PAT Margin (%) | 1.41 |
The company proposes to utilise the Net Proceeds towards funding the following objects:
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’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 |
₹ 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 |