Popular Vehicles & Services IPO

Popular Vehicles & Services IPO: A Comprehensive Analysis

Company Overview

Popular Vehicles & Services Limited, established in 1983, is a key player in the Indian automobile dealership sector. The company offers a wide range of services throughout the vehicle ownership lifecycle, including the sale of new and pre-owned vehicles, vehicle servicing, distribution of spare parts, driving schools, and third-party financial and insurance products sales. With operations spanning across Kerala, Karnataka, Tamil Nadu, and Maharashtra. Popular Vehicles & Services boasts an extensive network of 59 showrooms, 126 sales outlets, 31 pre-owned vehicle showrooms, 134 authorized service centers, 40 retail outlets, and 24 warehouses​.

Company Financials

The company has demonstrated strong financial growth, with its profit after tax (PAT) increasing by 90.31% from Fiscal 2021 to Fiscal 2023. During the same period, its revenue saw a substantial rise of 40.42%. For the fiscal year 2023, Popular Vehicles & Services reported total income of ₹48,926.28 million, a notable increase from the previous years​.

Company SWOT Analysis

• Strengths: Extensive network, diversified services, strong growth in revenue and PAT.

• Weaknesses: Heavy reliance on the Indian market, which is subject to regulatory changes and economic fluctuations.

• Opportunities: Expansion into new markets, adoption of electric vehicles, and digital transformation in sales and services.

• Threats: Intense competition, changes in consumer preferences, and the impact of global economic conditions.

IPO Overview

The IPO of Popular Vehicles & Services is a mix of a fresh issue and an offer for sale (OFS), aiming to raise ₹601.55 crores. It marks a significant milestone for the company as it seeks to expand its operations and strengthen its market position​.

IPO Details

• IPO Date: March 12, 2024 - March 14, 2024

• Price Band: ₹280 - ₹295 per share

• Lot Size: 50 shares

• Issue Size: ₹601.55 Crores

• Listing Date: Expected on March 19, 2024

• Promoter Holding Pre-IPO: 65.79%

Objectives of the Issue

The proceeds from the IPO will be utilized for the repayment and/or pre-payment of certain borrowings availed by the company and certain subsidiaries. Additionally, funds will be allocated for general corporate purposes​.

IPO Grey Market Premium (GMP)

As of the latest available data, the tentative Grey Market Premium (GMP) for Popular Vehicles & Services IPO stands at Rs 60, indicating the market's anticipation and interest in the IPO​.

Conclusion

Popular Vehicles & Services IPO presents an opportunity for investors looking to invest in a company with a robust operational network and a strong track record of financial performance. However, investors should conduct their own research and consider market conditions before making any investment decisions.

Disclaimer: All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company and other reliable sources. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.