Popular Vehicles and Services Ltd. has filed a DRHP with SEBI, which includes a new issuance of Rs. 150 crore and an offer to sell up to 4,266,666 equity shares. The book-running main managers are Axis Capital Ltd., DAM Capital Advisors, and Centrum Capital Ltd. The promoters are John K. Paul, Francis K. Paul, and Naveen Philip.
Popular Vehicles is one of the most diverse vehicle dealerships in the country in terms of revenue. They are present throughout the automotive retail chain, including the sale of new automobiles and trucks as well as commercial vehicles, the distribution of spare parts, and the provision of third-party financial and insurance services. They also have dealerships for Maruti Suzuki, Honda, and Jaguar passenger automobiles, as well as the commercial vehicle division of Tata Motors Ltd.
Popular Vehicles had the third-largest commercial vehicle dealership for Tata Motors, the fifth-largest passenger dealership for Jaguar, the sixth-largest passenger dealership for Honda, and the sixth-largest passenger dealership for Maruti Suzuki as of March 31, 2021. They have 83 licensed repair facilities, 29 retail locations, 25 warehouses, 59 showrooms, 99 sales locations, and booking offices. These are distributed over 14 districts in Tamil Nadu and Kerela.
Kerela and Tamil Nadu contribute the most to national passenger vehicle sales. The corporation has developed four business segments: passenger automobiles, luxury cars, commercial vehicles, and others. In Kerela, they got their first dealership award for a Maruti Suzuki automobile in 1984. This was the first batch of Maruti Suzuki automobiles in India.
Popular Vehicles and Services IPO Objectives:
- Repayment and/or prepayment, in full or in part, of various borrowings, including working capital loans, obtained by the Company and our subsidiaries PAPL, PMMPL, and VMPL
- General corporate purposes.
Popular Vehicles and Services IPO Financials
| 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 |
Why should you invest in the Popular Vehicles and Services IPO?
- The automobile sector is a major contributor to the Indian economy. It currently contributes 7% of India’s GDP and directly and indirectly employs 3.5 crore people. With domestic sales of nearly 27 million automobiles at their peak in fiscal 2019, India’s domestic market is the world’s fourth-largest auto market.
- The domestic market, which is dominated by two-wheelers and PVs, rose at an 8.9% CAGR between fiscal years 2016 and 2019. Domestic sales, on the other hand, dropped by 17.7% in Fiscal 2020 and 12.3% in Fiscal 2021.
Know before investing
Strengths
- They have a stronghold in the market, and this is supported by extremely creative marketing tactics.
- The company provides fully integrated services and repairs, which increase revenue and promote the stability of the business.
- 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.
- 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 will offer 9,413 previously owned cars.
Risks
- 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 ties the company has with the OEMs with whom it has dealership agreements are absolutely essential to the company’s commercial operations.
- The business is heavily focused on India’s southern region.
- The marketing endeavors have decreased the company’s profit margin, and the competition has grown significantly in this area.
Popular Vehicles and Services IPO FAQs:
Q1. What is Popular Vehicles and Services Initial Public Offering?
Ans. Popular Vehicles & Services Ltd. filed for an initial public offering (IPO) with SEBI that includes a fresh issue of Rs. 150 crore and an offer for sale of 42,66,666 (42.67 lakh) shares.
Q2. When will allotments for the Popular Vehicles and Services IPO become available?
Ans. Popular Vehicles and Services IPO will finalize the allotment by <>.
Q3. What will the IPO lot size for Popular Vehicles and Services be?
Ans. Each Popular Vehicles and Services IPO lot has <> shares.
Q4. When will Popular Vehicles and Services IPO be available to buy?
Ans. The IPO of Popular Vehicles and Services will be open for subscription from <>.
Q5. What is Popular Vehicles and Services’ smallest lot size available to retail investors?
Ans. The minimum market lot size for the Popular Vehicles and Services IPO is <> shares.
Q6. Which exchanges will Popular Vehicles and Services list on?
Ans. Popular Vehicles and Services shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Q7. What is the IPO size of Popular Vehicles and Services?
Ans. The IPO size of Popular Vehicles and Services is Rs <> crore.
Q8. How will I get my Popular Vehicles and Services stock?
Ans. Following allotment, the Popular Vehicles and Services shares will be credited to the Demat account.
Q9. Can I use one PAN to submit multiple applications for the public issue of Popular Vehicles and Services?
Ans. No, you cannot use the same PAN to make multiple applications for this Popular Vehicles and Services IPO or any other public offering.
Q10. Is it necessary to give immediate approval to a UPI mandate request?
Ans. Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.
Q11. Who owns Popular Vehicles and Services?
Ans. Mr John Paul Kuttukaran is the owner of Popular Vehicles and Services.
