Popular Vehicles and Services IPO opens tomorrow. 10 things to know before subscribing to the issue

The initial public offering (IPO) of Popular Vehicles & Services will open for subscription on Tuesday, March 12. The issue closes on March 14. Through the public offer, the company plans to raise around Rs 602 crore.

Here are 10 things to know about Popular Vehicles and Services IPO before subscribing to the issue.

1) What is the business overview of Popular Vehicles and Services?

The company diversified automobile dealerships in India in terms of revenue for FY23, having a fully integrated business model. It 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 sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.

2) What is the industry overview of Popular Vehicles and Services?

The automobile industry is one of the primary contributors to the Indian economy. Its contribution to India’s GDP has increased from 2.8% in fiscal 1993 to approximately 7.1% currently. India is one of the largest auto markets in the world, with annual domestic sales of over 20 million vehicles

3) What is the size of Popular Vehicles and Services IPO?

The IPO is a combination of fresh equity issue of 84 lakh shares and an offer for sale of 1.19 lakh shares.

4) What is the price band for Popular Vehicles and Services IPO?

Popular Vehicles has fixed a price band of Rs 280-295 per share for its maiden public offer. At the upper end, the company plans to raise Rs 602 crore.

5) What is the structure of Popular Vehicles and Services IPO?
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 35% for retail investors.

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6) How is the financial performance of Popular Vehicles and Services?

For FY23, the company's revenue from operations rose 41% year-on-year to Rs 4,875 crore. Net profit for the same period jumped 91% to Rs 64 crore.

7) What are the objects of Popular Vehicles and Services IPO?

The funds raised through the IPO will be utilized for repayment of debt of the company and its subsidiaries as well as general corporate purposes.

8) What is the current GMP of Popular Vehicles and Services?

According to market analysts, the current GMP of Popular Vehicles and Services is Rs 25 in the unlisted market.

9) Who are the book running lead managers for Popular Vehicles and Services IPO?

ICICI Securities, Nuvama Wealth and Centrum Capital are the book running lead managers for the IPO, while Link Intime India is the registrar.

10) When is the share allotment and listing date of Popular Vehicles and Services IPO?

The share allotment for the IPO will be finalised on March 15 and the estimated listing date is March 19.