Popular Vehicles & Services Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Popular Vehicles & Services Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹295
Per ShareLot Size
50 Shares
Minimum Investment
₹14,750
Issue Size
₹601.55 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Popular Vehicles & Services Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
69.45%
Issue Type
Book Building
ISIN
INE772T01024
About the Company
Popular Vehicles & Services Limited is a diversified automobile dealership in India in terms of revenue for Fiscal 2023, having a fully integrated business model. We 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.
Industry Overview
The automobile industry is one of the primary contributors to the Indian economy. Its contribution to India's GDP has increased from 2.80% in fiscal 1993 to approximately 7.10% currently. India is one of the largest auto markets in the world, with annual domestic sales of over 20 million vehicles. Currently, there are only a handful of very large dealerships in India with more than 100 outlets and a presence across 4-5 states. Compared with global dealership giants, Indian dealerships are still in the development stages with significant room for expansion.
Company History
Popular Vehicles and Services Limited was originally incorporated as Popular Vehicles and Services Limited on July 5, 1983 at Kochi, Ernakulam, Kerala, India as a public limited company under the Companies Act, 1956 and received its certificate for commencement of business on July 14, 1983. The Company was converted to a private limited company pursuant to a special resolution passed by its Shareholders at the Extraordinary General Meeting ("EGM") held on December 29, 2014 and the name of the Company was changed to Popular Vehicles and Services Private Limited. A fresh certificate of incorporation consequent upon conversion of the Company to a private limited company was issued on March 24, 2015 by the Registrar of Companies, Kerala at Ernakulam ("RoC"). The Company was subsequently converted into a public limited company pursuant to a special resolution passed by its Shareholders at the EGM held on June 11, 2018 and the name of the Company was changed to Popular Vehicles and Services Limited. A fresh certificate of incorporation consequent upon conversion of the Company to a public limited company was issued on July 10, 2018 by the RoC.
Products & Services
- Popular Vehicles & Services Limited is a diversified automobile dealership company.
Growth Strategy
- Sustained growth of its higher margin services and repair business, sale of pre-owned passenger vehicles and facilitation of sale of third-party financial products.
- Continue to increase sales at its existing dealerships.
- Expansion of its network and diversification of its product portfolio.
- Grow through strategic acquisitions.
- Invest in technology and increase its digital presence.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 20,393,828 equity shares of face value of Rs. 2 each ("Equity Shares") of Popular Vehicles and Services Limited ("Company") for cash at a price of Rs. 295 per equity share (including a share premium of Rs. 293 per equity share) ("Offer Price") aggregating to Rs. 601.55 crores comprising a fresh issue of 8,476,753 equity shares aggregating to Rs. 250.00 crores by the company ("Fresh Issue") and an offer for sale of 11,917,075 equity shares aggregating to Rs. 351.55 crores by Banyantree Growth Capital ii, llc (the "Selling Shareholder") and such equity shares offered by the selling shareholder ("Offer for Sale", and together with the fresh issue, the "Offer"). The offer included a reservation of 37,453 equity shares*, aggregating up to Rs. 1.00 crores (constituting 0.05% of the post-offer paid-up equity share capital*), for subscription by eligible employees ("Employee Reservation Portion"). Pursuant to finalization of basis allotment 22,950 equity shares allotted to eligible employees under the employess reservation portion. The company, in consultation with the brlms, offred a discount of 9.49% of the offer price 9Equivalent to Rs. 28 per equity share) to eligible employees bidding in the employee reservation portion ("Employee Discont"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 28.64% and 28.61 respectively, of the post-offred paid-up equity share capital of the company. Anchor investor offer Price is Rs. 295 per equity share of face value of Rs. 2 each. Offer Price: Rs. 295^ per equity share of the face value of Rs. 2 each. The offer price is 147.50 times the face value of the equity shares. ^A discount of Rs. 28 per equity share was offered to eligible employees bidding in the employee reservation portion
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Long standing presence in the automobile industry and well-established relationships with leading OEMs.
- Penetration in markets in which the company operates complemented by innovative marketing strategies.
- Fully integrated business model leading to business stability and higher margin.
- Proven ability to identify and capture inorganic as well as organic growth opportunities.
- Consistent track record of profitable financial performance and increasing growth.
- The automotive industry is sensitive to changing economic conditions and various other factors. Any decline in demand for vehicles by individuals or entities may adversely impact its business prospects and results of operations.
- The company is subject to the significant influence of its OEMs. The company's top two OEMs i.e., Maruti Suzuki and Tata Motors (commercial), account for more than 80% of the Company's consolidated revenue in the six months period ended September 30, 2023 and each of Fiscal 2023, 2022 and 2021. Such significant influence of its OEMs and restrictions imposed by them pursuant to the terms of its dealership agreements may adversely impact the company's business, results of operations, financial condition and prospects, including our ability to expand into new territories and acquire additional dealerships.
- Non-renewal, termination or any adverse material modifications made by its OEMs to the dealership agreements, will have a material and adverse impact on its business prospects and results of operations.
- The Company has not received the required approval from the Central Government for appointment of John K. Paul as a Whole-time Director of the Company. The company cannot assure you that such approval will be received in a timely manner.
- The company has had negative cash flows in the past including negative cash flows from operating activities in the six months period ended September 30, 2023, and it is possible that the company may experience negative cash flows in the future which could adversely affect its cash flow requirements, its ability to operate the company's business and implement its growth plans, thereby affecting its financial performance.