Popular Vehicles & Services Ltd IPO
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Popular Vehicles & Services Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 203.92 L | ₹ 119.17 L | ₹ 71.25 L | ₹ 435.58 L | BSE | ₹ 601.55 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 12 Mar, 24 | 14 Mar, 24 | 50 | ₹ 14,000 | Book Building | 19 Mar, 24 |
Popular Vehicles & Services Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Trading |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0.77x | 10178877 | 7810150 |
| NII | 0.67x | 3053663 | 2055350 |
| Retail | 1.07x | 7125213 | 7634850 |
| Employee | 8.88x | 33898 | 301150 |
| Total | 0.87x | 20391651 | 17801500 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Popular Vehicles & Services Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 79.28 | 84.54 | 55.36 |
| EBITDA | 127.78 | 130.07 | 97.00 |
| PAT | 25.82 | 29.34 | 6.98 |
| Total Assets | 509.55 | 334.81 | 329.56 |
| Share Capital | 14.24 | 12.54 | 12.54 |
| Total Borrowings | 236.76 | 256.46 | 248.65 |
| Operating Activities (Net Cash) | 74.32 | 74.87 | 48.62 |
| Investing Activities (Net Cash) | 97.49 | 86.88 | 50.35 |
| Financing Activities (Net Cash) | 236.76 | 256.46 | 248.65 |
| Net Cashflow | 35.04 | 6.80 | 5.18 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Popular Vehicles & Services Ltd
Popular Vehicles and Services Limited was originally incorporated as Popular Vehicles and Services Limited on July 5, 1983 at Kochi, Ernakulam, Kerala, India as a public limited company under the Companies Act, 1956 and received its certificate for commencement of business on July 14, 1983. The Company was converted to a private limited company pursuant to a special resolution passed by its Shareholders at the Extraordinary General Meeting (EGM) held on December 29, 2014 and the name of the Company was changed to Popular Vehicles and Services Private Limited. A fresh certificate of incorporation consequent upon conversion of the Company to a private limited company was issued on March 24, 2015 by the Registrar of Companies, Kerala at Ernakulam (RoC). The Company was subsequently converted into a public limited company pursuant to a special resolution passed by its Shareholders at the EGM held on June 11, 2018 and the name of the Company was changed to Popular Vehicles and Services Limited. A fresh certificate of incorporation consequent upon conversion of the Company to a public limited company was issued on July 10, 2018 by the RoC.
The automobile industry is one of the primary contributors to the Indian economy. Its contribution to India's GDP has increased from 2.80% in fiscal 1993 to approximately 7.10% currently. India is one of the largest auto markets in the world, with annual domestic sales of over 20 million vehicles. Currently, there are only a handful of very large dealerships in India with more than 100 outlets and a presence across 4-5 states. Compared with global dealership giants, Indian dealerships are still in the development stages with significant room for expansion.
Popular Vehicles & Services Limited is a diversified automobile dealership in India in terms of revenue for Fiscal 2023, having a fully integrated business model. We cater to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.
Peer Comparison:
- Landmark Cars Ltd
Popular Vehicles & Services Ltd IPO Key Points
Strengths
- Long standing presence in the automobile industry and well-established relationships with leading OEMs.
- Penetration in markets in which the company operates complemented by innovative marketing strategies.
- Fully integrated business model leading to business stability and higher margin.
- Proven ability to identify and capture inorganic as well as organic growth opportunities.
- Consistent track record of profitable financial performance and increasing growth.
Risk
- The automotive industry is sensitive to changing economic conditions and various other factors. Any decline in demand for vehicles by individuals or entities may adversely impact its business prospects and results of operations.
- The company is subject to the significant influence of its OEMs. The company's top two OEMs i.e., Maruti Suzuki and Tata Motors (commercial), account for more than 80% of the Company's consolidated revenue in the six months period ended September 30, 2023 and each of Fiscal 2023, 2022 and 2021. Such significant influence of its OEMs and restrictions imposed by them pursuant to the terms of its dealership agreements may adversely impact the company's business, results of operations, financial condition and prospects, including our ability to expand into new territories and acquire additional dealerships.
- Non-renewal, termination or any adverse material modifications made by its OEMs to the dealership agreements, will have a material and adverse impact on its business prospects and results of operations.
Strategy
- Sustained growth of its higher margin services and repair business, sale of pre-owned passenger vehicles and facilitation of sale of third-party financial products.
- Continue to increase sales at its existing dealerships.
- Expansion of its network and diversification of its product portfolio.
- Grow through strategic acquisitions.
- Invest in technology and increase its digital presence.
- Long standing presence in the automobile industry and well-established relationships with leading OEMs.
- Penetration in markets in which the company operates complemented by innovative marketing strategies.
- Fully integrated business model leading to business stability and higher margin.
- Proven ability to identify and capture inorganic as well as organic growth opportunities.
- Consistent track record of profitable financial performance and increasing growth.
How To Apply for Popular Vehicles & Services Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.