Popular Vehicles and Services Ltd. approached markets regulator SEBI on 4 August 2021 with draft papers to raise funds via an IPO. The initial public offering will consist of a fresh issue of shares amounting to Rs. 150 crores. It will also include an offer for sale (OFS) by existing company shareholders.
Incorporated in 1983, Popular Vehicles and Services Ltd. is one of India’s prominent diversified automotive dealerships. This Kerala-based company operates across the automotive retail value chain. Its business activities include spare parts distribution, repairs and services, sale of commercial and new and pre-owned passenger vehicles.
The company also deals in facilitating sale of third-party insurance and financial products.
Passenger vehicle dealerships under this company include Honda, Maruti Suzuki, and JLR. Additionally, the company operates Tata Motors’ commercial vehicle dealership.
Popular Vehicles and Services reported revenue from operations of Rs. 2893.53 crores for FY2020 – 2021.
During this period, the company recorded a net profit worth Rs. 32.45 crores.
The sale of new passenger vehicles stood at 28,393 from all of the company’s dealerships.
As of March 2021, the company’s network comprised 99 sales outlets and booking offices, 25 warehouses, 59 showrooms, 83 authorised service centres, and 29 retail outlets across various locations in Kerala, Tamil Nadu, and Karnataka. Among these, Tamil Nadu and Kerala stand as the most prominent states responsible for most vehicle sales.
Here are the most important details about Popular Vehicles and Services IPO so far –
The OFS under this new issue will comprise 4,266,666 equity shares.
34% stakeholder Banyantree Growth Capital II and LLC will be contributing to this OFS.
Popular Vehicles and Services had a working capital worth Rs. 353.84 crores as of June 2021. It plans to utilise its potential IPO proceeds for fund solutions. This includes repaying working capital loan debts accumulated by the company and its associates.
Interested investors looking forward to this IPO can benefit significantly, given India’s booming auto market, which makes it the fifth-largest globally as of 2020.
Additionally, domestic automobile sales grew at 1.29% CAGR during FY16-FY20. Popular Vehicles and Services, being a primary dealer of passenger and commercial vehicles, can benefit significantly from this growth, valuation-wise. Now, it is only a matter of time to gauge possibilities from the proceedings of its IPO. Watch out for further updates on the Angel One platform.
Centrum Capital, Axis Capital, and DAM Capital Advisors are the BRLM to this upcoming issue.
Popular Vehicles and Services Ltd. has just filed its preliminary IPO papers with SEBI. The potential IPO timeline is yet to be published.
No information is available on this matter as of now. We will update the same as soon as the company releases the details.
Popular Vehicles and Services will list its equity shares on NSE and BSE.
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