Popular Vehicles & Services is raising  ₹601.55 crore through an IPO. The issue opens for subscription on March 12th and closes on March 14th, with an expected listing on March 19th on BSE and NSE. 

About the Company 

Popular Vehicles & Services Limited (Popular) is a leading diversified automobile dealership in India, boasting a fully integrated business model. They cater to every stage of a vehicle’s life cycle, offering a comprehensive range of services:

  • New Vehicle Sales: Passenger vehicles, including luxury options, commercial vehicles, and electric two-wheelers and three-wheelers.
  • After-Sales Services: Complete vehicle care through servicing, repairs, spare parts, and accessories.
  • Pre-Owned Vehicle Management: Facilitate the sale and exchange of pre-owned vehicles.
  • Additional Services: Operate driving schools and help customers secure third-party financial and insurance products.

Popular Vehicles & Services Limited has established strong partnerships with leading Original Equipment Manufacturers (OEMs) to offer a wide variety of vehicles:

  • Passenger Vehicles: Maruti Suzuki (Arena & Nexa), Honda Cars India, and Jaguar Land Rover India.
  • Commercial Vehicles: Tata Motors (Commercial) and Daimler India Commercial Vehicles (BharatBenz).
  • Electric Vehicles: Piaggio Vehicles Private Limited (electric three-wheelers) and Ather Energy Private Limited (electric two-wheelers).

Key Points about the IPO

IPO Opens On March 12, 2024 
IPO Closes OnMarch 14, 2024
Date of ListingMarch 19, 2024
Price Band Per Share₹280 to ₹295
Lot Size 50 Shares
Minimum investment₹14000
Total Issue Size₹601.55 Cr
Fresh Issue Component₹250.00 Cr
Offer for Sale₹351.55 Cr
Employee Discount₹28 per share
Exchanges Listing On BSE, NSE

Key financials 

Period Till31 Mar 202131 Mar 202231 Mar 202330 Sep 2023
Assets1,118.941,263.291,503.781,941.78
Revenue2,919.253,484.204,892.632,848.21
Profit After Tax32.4633.6764.0740.04
Net Worth246279.89343.04384.21
Reserves and Surplus233.46267.34330.5371.67
Total Borrowing353.04371.91505.01764.61

Performance Indicators

ROE10.42%
ROCE8.83%
Debt/Equity1.47
RoNW10.42%
P/BV4.82
PAT Margin (%)1.41

Key Strengths 

  • Fully Integrated Business Model for Stability
  • Proven Ability to Identify Growth Opportunities
  • Established Presence in the Automobile Industry
  • Effective Market Penetration and Innovative Marketing
  • Consistent Track Record of Profitability
  • Experienced Promoters and Management

Key Risks

  • Economic Sensitivity to Vehicle Demand Fluctuations
  • Vulnerability to Regional Developments Due to Concentrated Operations
  • Exposure to Market Fluctuations from Dependence on Specific OEMs
  • Adverse Effects of Volatility in Demand for Key OEMs
  • Impact of Significant OEM Influence and Restrictions
  • Risks Related to Non-Renewal or Adverse Modifications of Dealership Agreements