- Popular Vehicles and Services IPO garners Rs 180.17 crore from institutional investors through anchor book.
- HDFC Mutual Fund leads with Rs 74 crore investment in the public issue.
- IPO opens on March 12, subscription deadline set for March 14.
- Company allocates 61,07,325 equity shares to anchor investors at Rs 295 per share.
- Proceeds from IPO to total Rs 601.55 crore; Rs 192 crore slated for debt repayment.
- BanyanTree Growth Capital II, LLC offers 1.19 crore equity shares worth Rs 351.55 crore.
Popular Vehicles and Services, a Kerala-based automobile dealer, recently made headlines in the financial industry by raising Rs 180.17 crore from institutional investors via an anchor book issued on March 11. This strategic effort came ahead of the public issue’s opening on March 12, with a subscription deadline of March 14.
Institutional Investment Highlights :
The company claimed that anchor investors received 61,07,325 equity shares at Rs 295 each. The anchor book has notable institutional investors such as HDFC Mutual Fund, Quant Mutual Fund, HSBC Global Investment Funds, Lionglobal Investment Funds, BofA Securities Europe SA, Pinebridge Global Funds, and ITI Mutual Fund.
Other notable participants include Citigroup Global Markets Mauritius, SBI General Insurance Company, LC Pharos Multi-Strategy Fund, 3P India Equity Fund, Integrated Global Strategies Asia, and Copthall Mauritius Investment.
HDFC Mutual Fund emerged as the largest investor in the Popular Vehicles and Services IPO, acquiring Rs 74 crore in equity shares via the anchor book. Of the total shares issued to anchor investors, 38,14,148 equity shares were distributed to three domestic mutual funds that operated through a total of eight schemes.
IPO Details and Financial Objectives :
Popular Vehicles and Services plans to collect Rs 601.55 crore through an initial public offering, with an upper price band of Rs 280-295 per share. The IPO consists of a new issue of Rs 250 crore by the company and an offer-for-sale of 1.19 crore equity shares worth Rs 351.55 crore by private equity fund BanyanTree Growth Capital II, LLC.
BanyanTree now controls the company’s largest shareholding (30.36 percent), with promoters John K Paul, Francis K Paul, and Naveen Philip each owning 23.15 percent.
Utilisation of funds :
Popular Vehicles and Services intends to use Rs 192 crore of the net proceeds from the fresh offer to settle debt, with the remaining set aside for general corporate reasons.
Key Players and Advisors :
ICICI Securities, Nuvama Wealth Management, and Centrum Capital are the designated merchant bankers handling the IPO, demonstrating industry experts’ confidence in its success.
To summarise, institutional investors’ strong interest in Popular Vehicles and Services demonstrates their confidence in the company’s growth possibilities. As the IPO progresses, all eyes are on how the company will use the money infusion to expand and consolidate its market position.