- Popular Vehicles IPO priced at Rs 280-295/share.
- Includes fresh issue of Rs 250 crore and OFS of 11.92 mln shares.
- Promoters hold 69.45%; BanyanTree largest shareholder.
- Funds to repay debt and for corporate purposes.
- Strong financial performance with 90.3% YoY profit growth.
- Revenue surged by 40.65%; EBITDA up by 35.5%.
- Dealerships for major brands like Maruti Suzuki, Honda, Jaguar.
- ICICI Securities, Nuvama Wealth, Centrum Capital are merchant bankers.
Popular Vehicles’ IPO: Pricing Details :
Popular Vehicles and Services Ltd, a Kerala-based auto dealer, has announced the price range for its initial public offering (IPO) of Rs 280-295 per share. The IPO, which will be open for subscription on March 12, consists of a fresh issue of shares worth Rs 250 crore by the company and an offer-for-sale (OFS) BanyanTree Growth Capital II LLC, a privately held equity fund, h:olds 11.92 billion shares.
History and Listing :
The anchor bidding will begin on March 11, with the issue ending on March 14. The basis of allotment will be finalised on March 15, with reimbursements following on March 18. The stock is planned to be launched on the exchanges on March 19.
IPO size and market capitalization :
At the highest price band, the overall IPO size reaches Rs 600 crore, with a market capitalization of Rs 1,450 crore. Promoters presently possess 69.45% of the company, with the remainder held by public shareholders, including BanyanTree, the largest stakeholder. Prominent promoters include John K Paul, Francis K Paul, and Naveen Philip, who each own 23.15 percent.
Utilisation of funds :
Popular Vehicles intends to use Rs 192 crore from the net fresh issue to repay its own and some subsidiaries’ obligations, with the remaining set aside for general corporate reasons. As of December 2023, the consolidated debt on company books was Rs 637.06 crore.
Financial Performance and Operations :
The company, which provides comprehensive car ownership services ranging from new vehicle sales to servicing, repair, and spare parts distribution, reported a spectacular 90.3 percent year-on-year increase in net profit for the fiscal year ending March FY23. However, operational margins were under minor strain.
Revenue from operations increased by 40.65 percent to Rs 4,875 crore over the previous year, while EBITDA increased by 35.5 percent to Rs 217.2 crore during the same period. Notably, the net profit for the six-month period ending September FY24 was Rs 40 crore on a revenue of Rs 2,835 crore.
Business Segments and Partnerships :
Popular Vehicles divides its automobile dealership operations into three major categories: passenger vehicles (including luxury vehicles), commercial vehicles, and electric two- and three-wheeler vehicles. It operates dealerships for well-known manufacturers such as Maruti Suzuki India, Honda Cars India, Jaguar Land Rover India, Tata Motors, Daimler India Commercial Vehicles, Piaggio Vehicles, and Ather Energy.
Merchant bankers :
ICICI Securities, Nuvama Wealth Management, and Centrum Capital are serving as the issue’s merchant bankers, helping the IPO process.
Popular Vehicles hopes to pique investor interest and accelerate its growth trajectory in the volatile automobile market by offering a competitive pricing range and demonstrating strong financial performance.