| IPO date | 12 Mar 2024 – 14 Mar 2024 |
| Listing date | 19 Mar 2024 |
| Price range | 280 – 295 |
| Minimum order quantity | 50 | (D)RHP | View |
Popular Vehicles and Services Limited is launching its IPO. The opens for subscription on 12th March and will close on 14th March 2024.
What does Popular Vehicles and Services Limited do?
Incorporated in 1983, Popular Vehicles and Services Limited is engaged in the business of diversified automobile dealership services. The company caters 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 the sale and exchange of pre-owned vehicles, operating driving schools, and facilitating the sale of third-party financial and insurance products.
The company and its subsidiaries operate dealerships across (a) passenger vehicle dealerships covering economy, premium, and luxury vehicles for OEMs like Maruti Suzuki, Honda Cars India Limited (Honda), JLR, commercial vehicle dealerships of (i) Tata Motors Limited, and (ii) Daimler India Commercial Vehicles Private Limited (BharatBenz) and (c) electric three-wheeler vehicle dealership of Piaggio Vehicles Private Limited, including commercial and cargo vehicles (Piaggio) and electric two-wheeler vehicle dealership of Ather Energy Private Limited (Ather).
What is the issue size of the Popular Vehicles and Services Limited IPO?
The 601.55 crore public offer of the company is a combination of a Fresh equity issue worth 250 crore and an offer for sale (OFS) worth Rs. 351.55 crore from the existing shareholders.
Financials of Popular Vehicles & Services Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA | EPS |
| March 31, 2021 | 1,118.94 | 2,919.25 | 32.46 | 174.85 | 5.17 |
| March 31, 2022 | 1,263.29 | 3,484.20 | 33.67 | 178.66 | 5.37 |
| March 31, 2023 | 1,503.78 | 4,892.63 | 64.07 | 234.85 | 10.22 |
Schedule/Timeline of Popular Vehicles & Services Limited IPO
| Issue Period | 12th March to 14th March 2024 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | March 15, 2024 |
| Initiation of Refunds | March 18, 2024 |
| Credit of Shares | March 18, 2024 |
| Date of Listing | March 19, 2024 |
| Mandate end date | March 29, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | April 14, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | June 13, 2024 |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
Risk factors to consider:
Dependence on dealership renewals: Non-renewal, termination, or any adverse material modifications made by OEMs to the dealership agreements, will have a material and adverse impact on the business prospects and results of operations.
Influence and potential risks of restrictions by 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 last 3 years. Such significant influence of OEMs and restrictions imposed by them according to the terms of the dealership agreements may adversely impact the business, results of operations, financial condition, and prospects, including the company’s ability to expand into new territories and acquire additional dealerships.
How to apply to the Popular Vehicles & Services Limited IPO?
You can apply for the Popular Vehicles & Services Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the Popular Vehicles & Services Limited IPO?
You can check the allotment status for the Popular Vehicles & Services Limited IPO on the website of the Registrar and Transfer agent.