Popular Vehicles and Services IPO

A DRHP has been submitted by Popular Vehicles and Services Ltd to SEBI, and the issue comprises a fresh issuance for Rs. 150 crores and an offer to sell up to 4,266,666 equity shares. Axis Capital Ltd., DAM Capital Advisors, and Centrum Capital Ltd. are the book-running lead managers. John K. Paul, Francis K. Paul, and Naveen Philip are the promoters.

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Listing at NSE, BSE

Popular Vehicles and Services IPO Important Dates

IPO Open Date To be announced
IPO Close Date To be announced
Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat Account
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

View all upcoming IPOs

About Popular Vehicles and Services

According to revenue, Popular Vehicles is one of the top diversified car dealerships in the nation. They are present throughout the whole automotive retail chain, including the sale of new cars and trucks as well as commercial vehicles, the distribution of spare parts, and third-party financial and insurance services. Additionally, they have dealerships for Maruti Suzuki, Honda, and Jaguar passenger cars as well as the Tata Motors Ltd. commercial vehicle business.

As of March 31, 2021, Popular Vehicles had the third-largest commercial vehicle dealership for Tata Motors, the fifth-largest passenger dealership for Jaguar, the sixth-largest for Honda, and the sixth-largest passenger dealership for Maruti Suzuki. They offer an impressive network of 83 authorised repair facilities, 29 retail outlets, 25 warehouses, 59 showrooms, 99 sales outlets, and booking offices. These are spread out throughout 14 districts in Tamil Nadu and Kerela. The two states that contribute most to the national sales of passenger vehicles are Kerela and Tamil Nadu. Four business segments—passenger automobiles, luxury cars, commercial vehicles, and others—have been established by the corporation. At 1984, in Kerela, they received their first dealership award for a Maruti Suzuki vehicle. In India, this was the first batch of Maruti Suzuki vehicles.

Popular Vehicles and Services IPO Objectives

- Repayment and/or pre-payment, in full or part, of certain borrowings, including working capital loans, availed by the Company and PAPL, PMMPL and VMPL, our Subsidiaries.
- General corporate purposes.

Why should you invest in the Popular Vehicles and Services IPO?

  • The automobile industry is one of the primary contributors to the Indian economy. Its current contribution to India’s GDP is ~7% and it employs ~3.5 crore people directly and indirectly. India’s domestic market is the fourth largest auto market in the world, with domestic sales of over 27 million vehicles at their peak in fiscal 2019.
  • The domestic market, which is dominated by two-wheelers and PVs, grew at 8.9% CAGR from Fiscals 2016-2019. Domestic sales, however, fell by a sharp 17.7% in Fiscal 2020 and by a further 12.3% in Fiscal 2021.

Financial Highlights

Particulars (In Rs cr) FY21 FY20 FY19
Total Income 2,919.25 3,180.45 3,916.34
PAT 32.45 12.5 21.37
EPS (In Rs) 25.88 9.96 17.42
Total Assets 1,118.9 1,131.16 1,211.6
Total Borrowings 353 349.1 558.4
Equity Share Capital 12.54 12.54 12.54

How to apply for Popular Vehicles and Services IPO?

UPI & creating a Demat account are the two ways for the investors to start the trading journey. The processes are discussed below:

UPI

  • Step 1: Link your bank account with the UPI ID
  • Step 2: Join your UPI ID to your Demat account
  • Step 3: Apply for Popular Vehicles and Services IPO and accept the payment request on your UPI ID

Demat Account

Popular Vehicles and Services Noteworthy Highlights:

  • The company is the sixth largest passenger vehicle dealership for Maruti Suzuki, the fifth largest passenger dealership for JLR, the sixth largest passenger vehicle dealership for Honda and the third largest commercial vehicle dealership group for Tata Motors (Commercial), in terms of sales by volume, across India as of March 31, 2021.
  • As of March 31, 2021, management operates through their expansive network of 59 showrooms, 99 sales outlets and booking offices, 83 authorised service centres, 29 retail outlets, and 25 warehouses located across all 14 districts of Kerala, in Bengaluru, Mysuru, Mangaluru, Hubballi, Hosapete, Vijayapur and Shivamoga in Karnataka and in Chennai, Chengalpet, Dharmapuri, Krishnagiri and Thiruvallur in Tamil Nadu.
  • The company categorises its business into four key segments, namely passenger cars, luxury vehicles, commercial vehicles and others, as per the “Management approach” defined in Ind AS 108, which contributed to consolidated revenues of ₹ 1926.273 Crores ₹ 144.20, ₹ 690.66 Crores and ₹ 132.38 Crores, respectively, during FY 2021.

The Brand’s Pros & Cons:

Pros Cons
They have a stronghold in the market, and this is supported by extremely creative marketing tactics. The sector is very vulnerable to abrupt changes in the national economy, which could have a materially negative impact on the operations and financials of the company.
The company provides fully integrated services and repairs, which increases revenue and promote the stability of the business. The ties the company has with the OEMs with whom it has dealership agreements are absolutely essential to the company's commercial operations.
They are present throughout the full car ownership life cycle, which results in a greater customer retention rate and offers the business a variety of revenue streams. The business is heavily focused on India's southern region.
Based on the volume of sales, Maruti Suzuki dubbed the business the No. 1 Pre-Owned Car Dealer in India in FY21. In 2021, they offered 9,413 previously owned cars. The marketing endeavours have decreased the company's profit margin and the competition has grown significantly in this area.

Competitive Analysis: Market Peers

Company Operating Revenue (Rs Cr) EBITDA Margin (%) PAT Margin (%) ROCE (%) Debt/Equity
Popular Vehicles and Services Ltd 318 3.5 0.4 12.7 1.7
Sai Service 278 6.3 2.9 24.8 0.002
Indus Motors 206 0.5 -0.9 12.2 5
Kataria Automobiles 202 3.6 0.6 12.8 10.2
Bhandari Automobiles 178 3.4 0.2 13.4 4.4
Competent Automobiles 117 3.8 3.3 24 0.4
Navnit Motors 113 -1.9 -5.2 4.5 -3
VST Motors 58 2.2 0.1 7.6 1.7
Pebco Motors 13 3.4 0.8 8.3 0.3

Popular Vehicles and Services IPO FAQs

What is Popular Vehicles and Services Initial Public Offering?

Popular Vehicles & Services Ltd filed for an initial public offering (IPO) with SEBI that includes a fresh issue of Rs. 150 crores and an offer for sale of 42,66,666 (42.67 lakh) shares.

When will allotments for the Popular Vehicles and Services IPO become available?

Popular Vehicles and Services IPO will finalize the allotment by <>.

What will the IPO lot size for Popular Vehicles and Services be?

Each Popular Vehicles and Services IPO lot has <> shares.

When will Popular Vehicles and Services IPO be available to buy?

The IPO of Popular Vehicles and Services will be open for subscription from <>.

What is Popular Vehicles and Services’s smallest lot size available to retail investors?

The minimum market lot size for the Popular Vehicles and Services IPO is <> shares.

Which exchanges will Popular Vehicles and Services list on?

Popular Vehicles and Services shares will be listed on both BSE as well as the National Stock Exchange (NSE).

What is the IPO size of Popular Vehicles and Services?

The IPO size of Popular Vehicles and Services is Rs <> crore.

How to check the allotment status of Popular Vehicles and Services IPO on the Angelone App?

The easiest ways to check your IPO allotment status on the Angelone app are below:
Step 1
Login & Look for Investment Opportunities via Angelone App.
Step 2
Choose IPOs & FPOs.
Step 3
Click Order Book.

How will I get my Popular Vehicles and Services stock?

Following allotment, the Popular Vehicles and Services shares will be credited to the Demat account.

Can I use one PAN to submit multiple applications for the public issue of Popular Vehicles and Services?

No, you cannot use the same PAN to make multiple applications for this Popular Vehicles and Services IPO or any other public offering.

Is it necessary to give immediate approval to a UPI mandate request?

Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.

Who owns Popular Vehicles and Services?

Mr John Paul Kuttukaran is the owner of Popular Vehicles and Services.

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