The net proceeds from the issuance of 84,74,576 Equity Shares (worth Rs 250 crs) will be utilized for repayment and pre-payment of borrowings (~Rs 192 cr) and the rest will be kept for General corporate purposes.Popular Vehicles & Services Limited is a Mainboard IPO with a book-built issue of Rs. 601.55 crores, with fresh issuance of ~0.84 crore shares and an Offer for Sale of ~1.19 crore shares. The IPO will open from 12th March to 14th March 2024, allotment is expected to be done on 15th March, and it will be listed on BSE and NSE on 19th March 2024. The price band is ₹280 to ₹295 per share, with a minimum lot size of 50 shares, and a minimum investment amount of ₹14,750. The book-running lead managers are Centrum Capital, ICICI Securities, and Nuvama Wealth Management while Link Intime is the registrar for the issue.

Popular Vehicles is a leading automotive distributor having a fully integrated model, catering from vehicle ownership, right from the sales 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 has a presence in 4 states with over 61 showrooms and 139 authorised service centers. 

1. Long-standing presence in the automobile industry and well-established relationships with leading OEMs.

2. Penetration in markets in which they operate complemented by innovative marketing strategies.

3. Fully integrated business model leading to business stability and customer stickiness.

The following points should be kept in mind:

Popular Vehicles and Services Ltd, like any business, has its strengths and challenges. The business is subject to the demand for vehicles by individuals and may be adversely impacted by any slowdown in the PV domestic demand. Tata Motors and Maruti Suzuki account for more than ~80% of the company’s consolidated revenue, making the business concentrated and subject to launches from these two OEMs.