Popular Vehicles Services Limited’s IPO consists of a fresh issue of shares worth INR 250 crores and an offer to sell 1.42 crores of existing equity shares. The company will use the funds raised to repay loans and subsidiaries’ borrowings and meet general corporate needs.
Popular Vehicles & Services Ltd IPO – Important Details
| Popular Vehicles Services IPO Date | March 12, 2024 to March 14, 2024 |
| Popular Vehicles Services IPO Listing Date | March 19, 2024 |
| Popular Vehicles Services IPO Price | INR 280 to 295 per share |
| Popular Vehicles Services IPO Lot Size | 50 Shares |
| Popular Vehicles Services IPO Total Issue Size | INR 601.55 crores |
| Popular Vehicles Services IPO Basis of Allotment | March 15, 2024 |
| Popular Vehicles Services IPO Initiation of Refunds | March 18, 2024 |
| Popular Vehicles Services IPO Credit of Shares to Demat | March 18, 2024 |
| Popular Vehicles Services IPO Issue Type | Book Built Issue IPO |
| Popular Vehicles Services IPO Listing At | BSE, NSE |
Popular Vehicles and Services Limited IPO – Company Profile
Popular Vehicles, a leading Indian auto dealership, operates with a fully integrated model, covering the entire vehicle ownership cycle. Segments include passenger vehicles (including luxury), commercial vehicles, and electric two/three-wheelers, contributing to diverse revenue streams.
They operate passenger vehicle dealerships for Maruti Suzuki, Honda, and Jaguar Land Rover, commercial vehicle dealerships for Tata Motors and Daimler India, and electric vehicle dealerships for Piaggio and Ather. They are diversified across vehicle categories, enhancing revenue streams.
They expanded through acquisitions, adding 11 service centers and two showrooms (Maruti Suzuki) in Kerala and acquiring eight showrooms, 17 service centers, and three sales outlets (BharatBenz) in Tamil Nadu and Maharashtra.
Popular Vehicles Service IPO – Fundamental Analysis
Popular Vehicles Service’s financials from 2021 to 2023 reveal robust revenue growth, doubled profits, and enhanced shareholder equity, positioning it strongly for its upcoming IPO. Key metrics like RoNW and EPS significantly improve, indicating a promising investment opportunity.
Revenue Growth:
The company has shown significant revenue growth, increasing from ₹28,935.25 million in 2021 to ₹48,750.02 million in 2023. This indicates strong market demand and business expansion.
Equity Growth:
Equity has steadily increased from ₹2,460.02 million in 2021 to ₹3,430.44 million in 2023, suggesting robust internal growth and possibly successful equity financing.
Expenses:
Expenses have increased proportionally with revenue, indicating effective cost management in line with business growth.
Profit After Tax:
Net profit has almost doubled from ₹324.55 million in 2021 to ₹640.74 million in 2023, reflecting increased profitability.
Return on Net Worth (RoNW):
RoNW has improved, rising from 13.19% in 2021 to 18.68% in 2023, indicating efficient use of shareholder equity.
Earnings Per Share (EPS):
There’s a significant increase in EPS from ₹5.17 in 2021 to ₹10.22 in 2023, suggesting increased profitability per share.
Net Asset Value (NAV) per Equity Share:
The NAV per share has consistently increased, a positive sign of growing intrinsic value.
Total Assets and Liabilities:
The company’s total assets have grown notably, with a corresponding increase in liabilities. The growth in assets outpaces the growth in liabilities, which is a healthy sign.
Popular Vehicles Service IPO Financial Information
| Particular | As of 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 28,935.25 | 34,658.79 | 48,750.02 |
| Equity (₹ in Million) | 2,460.02 | 2,798.86 | 3,430.44 |
| Expenses (₹ in Million) | 28,720.00 | 34,356.53 | 48,077.61 |
| Profit and Loss After Tax (₹ in Million) | 324.55 | 336.69 | 640.74 |
| RoNW (%) | 13.19 | 12.03 | 18.68 |
| NAV per Equity Share (₹) | 39.22 | 44.62 | 54.69 |
| Diluted EPS only (₹) | 5.17 | 5.37 | 10.22 |
| Total Assets (in millions) | 11,189.36 | 12,632.88 | 15,037.80 |
| Total Liabilities (in millions) | 8,729.34 | 9,384.02 | 11,607.36 |
Popular Vehicles Service IPO Peer Comparison
Popular Vehicles and Services Limited, with revenue of ₹48,750.02 million and RoNW of 18.68%, outperforms Landmark Cars Limited in revenue but has a lower EPS (₹10.22) compared to Landmark’s ₹22.56, indicating differing profit efficiencies between the companies.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Popular Vehicles and Services Limited | 48,750.02 | 2 | NA | 10.22 | 10.22 | 18.68 | 54.69 |
| Landmark Cars Limited | 33,823.51 | 5 | 36.41 | 22.56 | 21.74 | 18.04 | 118.55 |
Popular Vehicles & Services Ltd IPO Objective
The main objective of Popular Vehicles Limited’s IPO is to repay borrowings by the company and subsidiaries. Additionally, funds support general corporate goals, covering strategic initiatives, partnerships, acquisitions, subsidiary investments, and working capital needs.
1. Repayment and pre-payment, in whole or part, of certain borrowings availed by the Company and certain of the Subsidiaries, VMPL, PAWL, PMMIL, KGPL, KCPL, and PMPL: The company intends to utilize INR 192 crore of Net Proceeds towards full or partial repayment or pre-payment of certain borrowings, availed by their company and certain of their Subsidiaries. The company aims to guide borrowing choices, considering restrictions, consents, penalties, and legality.
2. General corporate purposes: The company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, partnerships, acquisitions, subsidiary investments, and meeting working capital needs and necessities.
Popular Vehicles & Services Ltd IPO Risks and Challenges
Popular Vehicles faces industry uncertainties, operates diverse dealerships under OEM agreements, and expands into Maharashtra, increasing exposure. Concentration in key states poses risks from economic fluctuations and natural disasters, impacting sales and operations.
- The company faces uncertainties in the automotive industry, with challenges such as economic fluctuations, technology shifts, changing credit conditions, and potential adverse impacts from tariffs and incentive withdrawals, especially in the electric vehicle segment.
- Operates Maruti, Honda, JLR, Tata Motors, BharatBenz, Ather, and Piaggio dealerships. OEM agreements influence operations, capital expenditure, and service levels. Conflicts may arise, impacting expansion, termination rights, pricing changes, and margins.
- Expansion into Maharashtra increases exposure. Concentration in Kerala, Tamil Nadu, and Karnataka poses risks from economic slowdowns, natural disasters, and fuel price fluctuations, impacting vehicle sales and operations.
Popular Vehicles & Services IPO – Industry & Market Potential
The Indian auto industry, a significant contributor to the economy, has grown to ~7.1% of GDP. Despite challenges like the fiscal 2020 slowdown and the COVID-19 impact, it remains one of the world’s largest auto markets.
After liberalization, Maruti Suzuki’s joint venture shifted India’s auto landscape. Hyundai, Honda, and others entered, fostering widespread manufacturing. Despite contractions, domestic PV sales rose at a 3% CAGR from fiscal 2018 to 2023, reaching 3.9 million in fiscal 2023.
India, a signatory to the Paris Agreement, actively promotes adoption of electric vehicle (EV) through incentives, tax cuts, and infrastructure development. Government initiatives aim for a 30% EV sales share by 2030, supported by the FAME subsidy, addressing range anxiety and fostering EV growth.
Popular Vehicles & Services Ltd IPO – Type of Offer
Popular Vehicles Services plans a fresh issue of shares, seeking INR 250 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 1.42 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 250 crores. The company intends to utilize the proceeds from the fresh issue to repay loans, subsidiaries’ borrowings, and meet general corporate needs.
2. Offer for sale: Popular Vehicles Services is offering to sell 1.42 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Banyan Tree Growth Capital II, LLC | 14,275,401 |
Popular Vehicles & Services Ltd IPO Offer Size
The offer size of Popular Vehicles & Services Limited’s IPO is INR 601.55 crores. This comprises a new issuance of shares totaling INR 250 crores and the sale of 1.42 crores of existing equity shares. The funds generated will be utilized to repay loans and subsidiaries’ borrowings and meet general corporate needs.
Popular Vehicles & Services Ltd IPO Allotment Structure
Popular Vehicles Services allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for a Popular Vehicles Services IPO?
To apply for the Popular Vehicles Services IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Popular Vehicles Services IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Popular Vehicles Services Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to check Popular Vehicles Services IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Popular Vehicles Services IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Popular Vehicles Services IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Popular Vehicles Services IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Popular Vehicles Services IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Popular Vehicles Services IPO Offer Registrar
The registrar for the Popular Vehicles Services IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg
Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Popular Vehicles Services IPO FAQs
The allotment date of the Popular Vehicles Services IPO is March 15, 2024.
The price band of the Popular Vehicles Services IPO is INR 280-295 per share.
Popular Vehicles Services plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 250 crores and the sale of 1.42 crores of existing equity shares. The funds generated will be utilized to repay loans and subsidiaries’ borrowings and meet general corporate needs.
The listing date of the Popular Vehicles Services IPO is March 19, 2024.
