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.

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.

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

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

Key Financial Indicators	2019	2020	2021
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?

Below are your top 2 reasons:

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.

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 increases 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 offered 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.