Popular Vehicles and Services. IPO price band set at ₹280

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%.

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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.