BackPopular Vehicles and Services files papers with Sebi for IPO
The proceeds from the issue will be used to repay debt, including working capital loans availed by the firm and its arms
PremiumMumbai: Popular Vehicles and Services Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise funds via an initial public offering.
The IPO consists of a fresh issue of ₹150 crore and an offer for sale of up to 4.27 million shares by Banyantree Growth Capital II, LLC. Currently Banyantree Growth Capital holds nearly 34% stake in the firm.
Axis Capital, DAM Capital Advisors and Centrum Capital are the book running lead managers to the issue.
The proceeds from the issue will be used to repay debt, including working capital loans availed by the firm and its arms. As of June 2021, the amount outstanding under its fund-based and non-fund-based working capital and term loan facilities was ₹353.84 crore on a consolidated basis.
For fiscal year 2021, the firm reported revenue from operations of ₹2893.53 crore against ₹3171.62 crore a year ago. Net profit for the period stood at ₹32.45 crore versus ₹12.49 crore last year.
The firm is a leading diversified automotive dealership in India in terms of revenue, with a presence across the automotive retail value chain, including sale of new passenger and commercial vehicles, services and repairs, spare parts distribution, sale of pre-owned passenger vehicles and facilitation of sale of third-party financial and insurance products.
As of March 2021, the firm operate through its 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. Kerala and Tamil Nadu are amongst the top contributors to the national passenger vehicle sales.
During FY2021, it sold a cumulative of 28,393 new passenger vehicles across its dealerships.
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