Popular Vehicles & Services Limited IPO: An Overview and Corporate Insight
Popular Vehicles and Services Limited was established in 1983 and is a car dealership company in India. Popular Vehicles offers full services for the duration of a vehicle’s ownership, including sales of new and used cars, maintenance, the provision of spare parts, driving instruction, and the selling of insurance and financial products to third parties.
The three business segments of the company are as follows:
- Passenger cars, including high-end models
- Cars used for business
- Electric two and three wheeler cars
Currently, the company’s extensive network spans 14 districts in Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu, 7 districts in Maharashtra, and 59 showrooms, 126 sales outlets, booking offices, 31 pre-owned vehicle showrooms and outlets, 134 authorized service centres, 40 retail outlets, and 24 warehouses. The retail outlets are in charge of selling and distributing replacement parts and accessories, while the sales outlets and booking offices assist with sales in addition to the showrooms.
Through 130 authorised service centres spread throughout dealerships, the business serviced 791,360 vehicles in FY 2023, including 5,212 luxury, 163,013 commercial, 1,918 electric two-wheeler, and 857 electric three-wheeler vehicles.
Grey Market Premium Analysis and IPO Timelines – Popular Vehicles & Services Limited IPO
| Date | GMP |
| March 11 | ₹27 |
| March 10 | ₹27 |
| March 9 | ₹27 |
| March 8 | ₹27 |
At a price range of 295.00, the anticipated listing price for the Popular Vehicles & Services IPO is ₹322, which includes the cap price plus today’s Grey Market Premium (GMP). The projected percentage increase or decrease per share stands at 9.15%.
Pricing Details and Lot Size – Popular Vehicles & Services Limited IPO
The price band for Popular Vehicles & Services Limited IPO is ₹280 to ₹295 per share.
Book-Running Lead Managers and Registrar – Popular Vehicles & Services Limited IPO
The Popular Vehicles & Services IPO’s book running lead managers are ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, and the registrar is Link Intime India Private Ltd.
Offer for Sale and IPO Size Breakdown – Popular Vehicles & Services Limited IPO
The book-built IPO for Popular Vehicles & Services is valued at Rs 601.55 crores. The offering consists of 1.19 crore shares for sale, totaling Rs 351.55 crores, and a new issue of 0.85 crore shares, totaling Rs 250.00 crores.
IPO Timelines at a Glance – Popular Vehicles & Services Limited IPO
| Event | Date |
| IPO Opening Date | March 12, 2024 |
| IPO Closing Date | March 14, 2024 |
| IPO Allotment Date | March 15, 2024 |
| Initiation of Refunds | March 18, 2024 |
| Credit of Shares to Demat | March 18, 2024 |
| IPO Listing Date | March 19, 2024 |
View details of more upcoming IPOs here.
Utilisation of Fresh Issuance and Technological Advancements – Popular Vehicles & Services Limited IPO
The following goals are what the company plans to fund with the Net Proceeds:
1. Full or partial repayment and/or prepayment of some loans taken out by the business and a few of its subsidiaries, including VMPL, PAWL, PMMIL, KGPL, KCPL, and PMPL
2. General corporate purposes.
Conclusion
By volume, Popular Vehicles currently runs the Fifth (Fiscal 2023) largest selling Maruti Suzuki dealership under the Arena network in India, and as of March 31, 2023, the Eighth (Fiscal 2023) most-selling Maruti Suzuki dealership under the Nexa network in India. In terms of the volume of servicing for Maruti Suzuki (Arena and Nexa), the company was placed #1 (Fiscal 2023) in the all-India dealer ranking for the fiscal year 2023.
During the fiscal year 2022–2023, Popular Vehicles & Services Limited (Popular) received the “Royal Platinum Band” from Maruti Suzuki for its arena dealerships in Kerala, the “Gold Band” for its arena dealerships in Chennai, and the “Alpha Band” for its Nexa dealerships. Around-the-clock customer service is provided by a customer relationship centre. Also, the business uses social media platforms to actively engage with its clients.
Between Fiscal 2021 and Fiscal 2023, the company’s PAT climbed from ₹324.55 million to ₹640.74 million.The total income of the company for the Fiscal Years 2021, 2022, and 2023 was ₹29,192.52 million, ₹34,841.99 million, and ₹48,926.28 million, in that order. There were 10,275 workers overall in the company as of July 31, 2023.
Frequently Asked Questions (FAQ) – Popular Vehicles & Services Limited IPO
Q. What does Popular Vehicles & Services Limited specialise in?
Popular Vehicles offers full services for the duration of a vehicle’s ownership, including sales of new and used cars, maintenance, the provision of spare parts, driving instruction, and the selling of insurance and financial products to third parties. The three business segments of the company are passenger cars, including high-end models; cars used for business; and electric two and three wheeler cars.
Q. What is the primary purpose of Popular Vehicles & Services Limited’s IPO?
The goals that the company plans to fund with the Net Proceed are full or partial repayment and/or prepayment of some loans taken out by the business and a few of its subsidiaries, including VMPL, PAWL, PMMIL, KGPL, KCPL, and PMPL, and general corporate purposes.
Q. Who are the lead managers for Popular Vehicles & Services Limited’s IPO?
ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited are the Book Running Lead Managers (BRLM) to the issue.
Q. How is the IPO structured in terms of new issuance and offer for sale (OFS)?
The book-built IPO for Popular Vehicles & Services is valued at Rs 601.55 crores. The offering consists of 1.19 crore shares for sale, totaling Rs 351.55 crores, and a new issue of 0.85 crore shares, totaling Rs 250.00 crores.
Q. What is the lot size and minimum investment for retail investors in the Popular Vehicles & Services Limited IPO?
Popular Vehicles & Services Limited IPO lot size is 50 shares, and the minimum amount required is ₹14,750.
Q. What is the price band for the Popular Vehicles & Services Limited IPO?
The price band for Popular Vehicles & Services Limited IPO is ₹280 to ₹295 per share.
Q. How has the Grey Market Premium (GMP) trend for Popular Vehicles & Services Limited IPO?
The GMP for Popular Vehicles & Services Limited has not started yet.
Q. When does the IPO open and close for subscription?
Popular Vehicles & Services Limited IPO will open for subscription on March 12, 2024 and close on March 14, 2024.
Q. When is the allotment date for the Popular Vehicles & Services Limited IPO?
The allotment date is set for March 15, 2024.
Q. When is Popular Vehicles & Services Limited expected to be listed on the stock exchanges?
The anticipated listing date for Popular Vehicles & Services Limited IPO is March 19, 2024 on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
