On the first day of the Popular Vehicles & Services Limited IPO, subscription levels varied across different investor categories. Non-Institutional Investors showed minimal interest with a subscription rate of just 0.05 times, while Retail Individual Investors (RIIs) were slightly more engaged, subscribing 0.28 times. Interestingly, the highest subscription rate came from employees at 2.79 times. Overall, the total subscription stood at 0.16 times.
Popular Vehicles Service Limited – Fundamental Analysis
Popular Vehicles Service’s financial performance from 2021 to 2023 shows impressive revenue escalation from ₹28,935.25 million to ₹48,750.02 million, indicative of expanding market presence and business growth. Equity has grown significantly, while expenses have been managed effectively alongside revenue increases. Profits nearly doubled, and both RoNW and EPS have seen substantial improvements, showing efficient equity utilisation and heightened profitability per share. The company’s asset growth surpassing liability increase further strengthens its position for the upcoming IPO.
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Popular Vehicles Service Limited – Risks And Challenges
Popular Vehicles & Services Ltd confronts automotive industry uncertainties, including economic volatility, technological changes, and potential adverse effects from policy shifts, particularly in the electric vehicle sector. Its operation of multiple dealerships under OEM agreements subjects it to operational, capital, and service level influences, with expansion risks and potential conflicts. Concentrated operations in key states like Kerala, Tamil Nadu, and Karnataka expose it to regional economic downturns, natural disasters, and fuel price variations, potentially affecting sales and overall operations.
