Category: Automobile

Popular Vehicles and Services. IPO price band set at ₹280-295 per share, important dates, and more

The price band for the Popular Vehicles and Services IPO is ₹280 to ₹295 per equity share, with a face value of ₹2. The subscription date for the Popular Vehicles and Services IPO is Tuesday, March 12, with a closing date of Thursday, March 14. The distribution to anchor investors for the Popular Vehicles and Services IPO is slated for Monday, March 11.

The floor and cap prices are 140 and 147.50 times the equity shares’ face value, respectively. The price/earnings ratio based on diluted EPS for fiscal 2023 for the firm at the top end of the price range is as high as 28.86, compared to the average industry peer group PE ratio of 34.84; the market cap at offer price to total turnover is 0.43 times; and the P/E ratio at offer price. The weighted average return on net worth for fiscal years 2023, 2022, and 2021 is 15.55%.

Also Read| Reliance is considering a deal to bring British retailer Primark to India.

Tentatively, the Popular Vehicles and Services IPO basis of allocation of shares will be concluded on Friday, March 15, and the business will commence refunds on Monday, March 18, with shares credited to allottees’ demat accounts on the same day. Popular Vehicles and Services’ share price is expected to be posted on the BSE and NSE on Tuesday, March 19.

The Red Herring Prospectus (RHP) lists John K. Paul, Francis K. Paul, and Naveen Philip as the company’s promoters. The promoters now possess 43,558,086 equity shares in total, accounting for 69.45% of the company’s pre-offer issued, subscribed, and paid-up equity share capital.

According to its RHP, the company has a completely integrated business model and is a diverse car dealership in India in terms of revenue as of fiscal 2023, according to the CRISIL Report.The corporation covers all aspects of automobile ownership, such as selling new cars, maintaining and repairing them, providing spare parts and accessories, assisting with the purchase and sale of old cars, operating driving schools, and assisting in the sale of insurance and financial goods from third parties.

According to RHP, the company’s auto dealership operations are separated into three major categories: commercial vehicles, electric two- and three-wheeler vehicles, and passenger vehicles, including luxury cars.According to the RHP, the company’s listed peer is Landmark Cars Limited (P/E ratio of 34.84).From March 31, 2022 to March 31, 2023, Popular Vehicles & Services Limited’s profit after tax (PAT) increased by 90.31%, while revenue increased by 40.42%.

Details of the popular vehicles and services IPO.

The Popular Vehicles and Services IPO includes a ₹250 crore new issuance and an offer-for-sale (OFS) of up to 11,917,075 equity shares with a face value of ₹2. The selling shareholder is BanyanTree Growth Capital II, LLC.The net proceeds will be used to fund a variety of goals, including the full or partial repayment and/or prepayment of certain loans obtained by the company and its subsidiaries, Popular Autoworks Private Limited (PAWL), Popular Mega Motors (India) Private Limited (PMMIL), Kuttukaran Green Private Limited (KGPL), Kuttukaran Cars Private Limited (KCPL), and Prabal Motors Private Limited (PMPL), as well as general corporate purposes.

The book running lead managers for the Popular Vehicles & Services IPO are ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, while Link Intime India Private Ltd serves as the registrar.

Electric Two-Wheeler Sales [January 2024] – Ola, TVS, Ather, and Others

Rising gasoline prices, government incentives, and the introduction of inventive new models are all driving up demand for electric two-wheelers in India. January 2024 witnessed a phenomenal 26.14 percent year-on-year (YoY) rise, with 81,608 units sold. This momentum demonstrates rising customer interest and a thriving sector primed for future growth.

Ola Electric leads the pack, with a 6.57 percent YoY growth rate. Ola Electric’s S1 X and S1 X+ models remained popular in January 2024, with 32,252 units sold. The implementation of a significant price drop in December 2023 has surely helped to the increase in sales, and the trend is projected to continue with a Rs 25,000 discount offer in February 2024.

TVS Motor achieves second place with its iQube model, which has grown by 24.34 percent year on year. TVS’s lone product in the electric two-wheeler market had sales of 15,244 units in January 2024, reflecting rising demand. Despite the delay in introducing the iQube ST model, TVS is still enthusiastic about its market presence.

Also Read| Ola Electric S1 range pricing down by INR 25,000.

Bajaj closely follows its Chetak sub-brand, which had a small 4.36 percent YoY growth in January 2024, selling 10,829 units. Ather Energy, on the other hand, had a spectacular 42.41 percent growth in revenue. The business is preparing for the introduction of the new Rizta electric scooter, which will debut in June 2024.

Ampere (Greaves) Electric Vehicles’ sales fell by 20.94 percent year on year in January 2024, selling 2,352 units. Hero MotoCorp’s electric scooter sub-brand, Vida, experiences a modest YoY dip of 6.46 percent, highlighting the brand’s successful entry into the electric category Other market participants, such as BGauss Auto, Wardwizard Innovation, Kinetic Green, Okinawa Autotech, PurEV, Okaya EV, Revolt, and Lectrix, help to drive overall industry growth. The electric two-wheeler market in India is predicted to develop in terms of both new launches and sales.

Ola Electric S1 range pricing down by INR 25,000.

Ola Electric, which is planning an IPO, has announced a price drop of up to Rs 25,000 for three models in its S1 scooter lineup. The discounted pricing are available just in February.

Ola Electric has recently announced a series of initiatives spanning products, services, charging networks, and battery warranties

The electric car manufacturer ascribed its decision to a good cost structure, vertically integrated in-house technologies, production capability, and eligibility for manufacturing incentives.”With a strong vertically integrated in-house technology and production capabilities, we were able to restructure costs and opted to pass on the gains to consumers. We are certain that with prices comparable to leading ICE scooters, buyers will no longer have a reason to purchase an ICE scooter.”

According to the firm, the Ola S1 scooters outperform all regular ICE cars. This, it claimed, makes them a better choice in the scooter market, with savings of up to Rs 30,000 each year.

Price Drop

The S1 X+ variant will now cost Rs 84,999, a 25,000 price decrease. Similarly, the price of the S1 Pro has been reduced to Rs 1,29,999 (from Rs 1,47,499), and that of the S1 Air to Rs 1,04,999 (from Rs 1,19,999).

Ola Electric is not the only company cutting rates. In January, rival manufacturer Ather Energy dropped the price of its entry-level model, the 450S, in an effort to broaden its client base in the competitive market. The company announced a Rs 20,000 price decrease for its 450S model, which was previously priced at Rs 1.09 lakh in Bengaluru and Rs 97,500 in Delhi.

Okaya EV has announced price reduction for all of their electric scooters. The reductions are up to Rs 18,000, and the deal is good till February 29. Okaya’s electric scooter lineup now begins with the Freedum, priced at Rs 74,899.

Last August, Bajaj cut the price of its Chetak electric scooter. The Base Chetak was priced at Rs 1.22 lakh. The premium model was priced at Rs 1.52 lakhs. The base model received reductions, while the premium variant’s price was reduced by Rs 22,000 to Rs 1.3 lakh.

Tata Motors recently announced price reductions for the Tiago.ev and Nexon.ev, only days after MG Motor slashed the price of its Comet electric hatchback.

Ola Electric has became the first Indian two-wheeler manufacturer to earn a domestic value addition (DVA) certificate via the production-linked incentive (PLI) plan for the car and auto component industries. The goal is to book a 13% subsidy on the sales value.

Ola Electric recently launched a number of projects that cover goods, services, charging networks, and battery guarantees. With the introduction of S1 X (4kWh), it increased its product offering to six, providing to consumers with varying range needs.

The business also announced the industry’s first 8-year/80,000 km extended battery guarantee for the whole product line at no additional cost.

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