Popular Vehicles & Services, a prominent name in the Indian automobile dealership sector, has recently initiated its maiden public share offering, also known as an initial public offering (IPO). This IPO presents substantial details that potential investors should carefully evaluate. The following is a comprehensive overview of the Popular Vehicles IPO:
IPO Timeline and Details
- Opening and Closing Dates: The IPO commenced bidding on March 12, 2024, and will conclude on March 14, 2024.
- Price Band: The public offering is priced between ₹280 to ₹295 per share.
- Size of the Issue: The IPO aims to raise ₹601.55 crore, with ₹250 crore allocated to the fresh issue and the remaining ₹351.55 crore for the Offer for Sale (OFS).
- Lot Size: Investors can apply for lots consisting of 50 shares.
- Promoters: The company’s promoters are John K. Paul, Francis K. Paul, and Naveen Philip.
- Allotment Date: The allotment for the IPO is scheduled for March 15, 2024.
- Listing Date: Popular Vehicles IPO is expected to be listed on both the BSE and NSE around March 19, 2024.
Company Overview
In Tamil Nadu, Karnataka, and Kerala, Popular Vehicles & Services operates multi-brand car dealerships. Among the best dealerships in terms of sales volume, it occupies a prominent place in the Indian automobile market. Notably, as of March 31, 2023, it ran one of the best-selling Maruti Suzuki dealerships through the Arena and Nexa networks.
Financial Performance
– In fiscal year 2023, Popular Vehicles & Services witnessed a substantial revenue growth of 40.42%.
– The company reported a remarkable year-on-year net profit increase of 90.3% to Rs 64.07 crore for FY23. However, this figure decreased to Rs 40.04 crore by September 2023 (H1FY24).
– Revenue from operations surged by 40.65% year-on-year to Rs 4,875 crore in FY23, with EBITDA rising by 35.5% to Rs 217.2 crore during the same period.
Anchor Investors and Peer Comparison
– Popular Vehicles & Services has been compared to its rival, Landmark Cars, in terms of return on net worth (RONW) and other financial measures.
– Anchor investors, who are integral to the offering, are included in the IPO.
Steps for buying unlisted shares of popular vehicles and services through Planify:
• Step 1: You need to confirm your booking of Popular Vehicles and Services Unlisted Shares with us at a specified trading price.
• Step 2: You are required to provide your client master report, PAN Card, and cancelled Cheque (if you are not transferring funds from the mentioned bank account in the CMR Copy). These documents are necessary for KYC compliance under SEBI regulations.
• Step 3: We will furnish you with the bank details.
• Step 4: It is essential for you to transfer the funds to that designated account.
• Step 5: Payments can only be made through RTGS/NEFT/IMPS or Cheque transfer. Cash deposits are not accepted.
• Step 6: The payment must originate from the same account where the shares are intended to be credited.
• Step 7: If funds are credited before 2 pm, we will transfer the shares within 24 hours. Important
Note: Please be aware that there is a lock-in period of 6 months for selling Popular Vehicles and Services Unlisted Shares after listing. Therefore, you cannot sell the shares purchased during the Pre-IPO period until 6 months after their listing date.
Risks and Considerations
There are certain risks associated with popular vehicles and services that investors should be aware of.
- Dependence of the company on big automobile manufacturers like Tata Motors and Maruti Suzuki.
- Rely on other companies to provide additional services.
- Operations are being concentrated in the market in southern India.
In conclusion, investors have the chance to participate in a business that has solidified its position in India’s automobile industry and has demonstrated strong financial performance metrics through the IPO of Popular Vehicles & Services. It is recommended that before making any investment decisions, people consult official sources like Planify Capital Limited for more comprehensive information or advice.
