Popular Vehicles & Services IPO is a book-built issue of Rs 601.55 crores. The issue is a combination of a fresh issue of 0.85 crore shares aggregating to Rs 250.00 crores and an offer for sale of 1.19 crore shares aggregating to Rs 351.55 crores.
The IPO opens for subscription on March 12, 2024, and closes on March 14, 2024. The price band for the IPO is set at ₹280 to ₹295 per share and the minimum lot size for an application is 50 Shares
Company Summary
They are a diversified automobile dealership company in India. They cater to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools, and facilitating the sale of third-party financial and insurance products
They categorize their automobile dealership business into three key segments, namely,
- passenger vehicles including luxury vehicles
- commercial vehicles
- electric two-wheeler and three-wheeler vehicles
They operate under dealerships for various Original equipment manufacturers, namely, Maruti Suzuki, Honda, Jaguar Landrover India, Tata Motors, Daimler India commercial vehicles, BharatBenz, and many more.
As of December 31, 2023, they operated through their network of 61 showrooms, 133 sales outlets and booking offices, 32 preowned vehicle showrooms and outlets, 139 authorized service centers, 43 retail outlets, and 24 warehouses located across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu and 9 districts in Maharashtra
Company Strengths
Their revenue from servicing passenger vehicles and commercial vehicles has seen a significant increase, from ₹3,651.64 million and ₹675.06 million in Fiscal 2021 to ₹5,716.13 million and ₹1,418.65 million in Fiscal 2023,
In Fiscal 2023, they were ranked ‘All India Highest in the Bodyshop Load’ for Maruti Suzuki. Further, the number of electric two-wheeler and three-wheeler vehicles sold by them has also increased from 252 in Fiscal 2022 to 3,381 in Fiscal 2023.
They believe that their long-term association with their OEMs and their strong business capabilities have resulted in them becoming a valued partner of those OEMs.
They have been categorized within the “Royal Platinum Band” by Maruti Suzuki for their Arena dealership in Kerala, “Gold Band” by Maruti Suzuki for their Arena dealership in Chennai, and “Alpha Band” by Maruti Suzuki for their Nexa dealership in Fiscal 2023.
Their expansive network of touch points, coupled with innovative marketing strategies, has helped them expand their reach in the markets in which they operate and tap into underserved geographies.
Company Financials
| 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 | ||||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds towards funding the following objects:
- Repayment and/or pre-payment, in full or part, of certain borrowings, availed by the Company and certain of their Subsidiaries, namely, PAWL, PMMIL, KGPL, KCPL, and PMPL.
- General corporate purposes
Promoters of the company
John K. Paul, Francis K. Paul, and Naveen Philip are the Promoters of the Company. The Promoters currently hold an aggregate of 43,558,086 Equity Shares, aggregating to 69.45% of the pre-offer issued, subscribed, and paid-up Equity Share capital of the Company.
IPO details
| IPO Date | March 12, 2024 to March 14, 2024 |
| Listing Date | Tuesday, March 19, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹280 to ₹295 per share |
| Lot Size | 50 Shares |
| Total Issue Size | 20,391,651 shares (aggregating up to ₹601.55 Cr) |
| Fresh Issue | 8,474,576 shares (aggregating up to ₹250.00 Cr) |
| Offer for Sale | 11,917,075 shares of ₹2 (aggregating up to ₹351.55 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 50 | ₹14,750 |
| Retail (Max) | 13 | 650 | ₹191,750 |
| Small-HNI(Min) | 14 | 700 | ₹206,500 |
| small-HNI(Max) | 67 | 3350 | ₹988,250 |
| Large-HNI (Min) | 68 | 3400 | ₹1,003,000 |
Allotment Schedule
| Basis of Allotment | Friday, March 15, 2024 |
| Initiation of Refunds | Monday, March 18, 2024 |
| The 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 |
Ipo reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
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