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The Banyantree-backed Popular Vehicles & Services Ltd IPO opened for subscription on March 12, 2024, and has been scheduled to close on March 14, 2024. Popular Vehicles & Services Ltd IPO is a book-built issue whereby the company is seeking to raise ₹601.55 crores. The fresh issue is a combination of both fresh issue and an offer for sale. Through a fresh issue, Popular Vehicles & Services will raise ₹250 crores via the issue of 0.85 crore shares. The offer-for-sale component comprises 1.19 crore shares aggregating to ₹351.55 crores.
The company offered a total of 2,03,95,205 shares. 40,71,551 (19.96%) to QIB, 30,53,663 (14.97%) to NII, 71,25,213 (34.94%) to RII, 37,453 (0.18%) to employees and 61,07,325 (29.94%) to Anchor investors. 142,504 RIIs will receive a minimum of 50 shares, and 1,454 Small High Net Worth Investors (sNII) and 2,908 Bigh High Net Worth Investors(bNII) will receive a minimum of 700 shares.
Incorporated in 1983, Popular Vehicles is one of the leading diversified car dealerships in the country. 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.
During FY 2023, Popular Vehicles & Services Limited’s revenue rose by ~40.42% and profit after tax (PAT) rose by ~90.31%. The company’s network included 30 showrooms, 84 sales outlets, and booking offices for the sale of new passenger cars; 21 showrooms, 44 sales outlets, and booking offices for the sale of commercial vehicles; 85 authorised service centers for the maintenance and repair of passenger cars; 44 authorised service centers for the maintenance and repair of commercial vehicles; and 10 dedicated showrooms, 22 sales outlets, and booking offices for the sale of pre-owned passenger cars as of December 31, 2023.
On the 1st day of subscription, i.e. March 12, 2024, the IPO was subscribed 0.28x in total. QIBs subscribed 0.00x, NIIs 0.11x, retail investors subscribed 0.48x, and employee quota subscribed 4.09x.
On the 2nd day of subscription, i.e. March 13, 2024, the IPO was subscribed 0.46x in total. QIBs subscribed 0.00x, NIIs 0.21x, retail investors subscribed 0.80x, and employee quota subscribed 6.57x.
| Sr No. | Name of Anchor Investor | No of Equity Shares Allocated | % of Anchor Investor Portion | Bid Price (₹ Per Equity Share) | Total Amount Allocated (₹) |
| 1 | HDFC Trustee Company Limited-HDFC Tax Saver Fund | 15,05,100 | 24.64 | 295 | 44,40,04,500 |
| 2 | Quant Mutual Fund- Quant Momentum Fund | 6,27,150 | 10.27 | 295 | 18,50,09,250 |
| 3 | HSBC Global Investment Funds-Asia Ex Japan Equity Smaller Companies | 6,10,200 | 9.99 | 295 | 18,00,09,000 |
| 4 | Quant Mutual Fund- Quant ConsumptionFund | 5,08,450 | 8.33 | 295 | 14,99,92,750 |
| 5 | HDFC Trustee Company Limited-HDFC Capital Builder Value Fund | 5,01,700 | 8.21 | 295 | 14,80,01,500 |
| 6 | HDFC Mutual Fund-HDFC Transportation and Logistics Fund | 2,50,850 | 4.11 | 295 | 7,40,00,750 |
As of March 13, 2024, Popular Vehicles IPO GMP was +5. This indicates Popular Vehicles and Services share prices were trading at a premium of ₹5 in the grey market, according to investorgain.com.
Taking into account the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Popular Vehicles and Services share price was indicated at ₹300 apiece, which is 1.69% higher than the IPO price of ₹295
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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