Popular Vehicles and Services IPO last day today: Should you apply to the issue? Check GMP, review, subscription status
- Popular Vehicles IPO includes fresh issue of ₹250 crore and offer-for-sale of up to 11,917,075 equity shares. Net proceeds to be used for corporate purposes and repayment of loans. Popular Vehicles IPO GMP at ₹0. Popular Vehicles and Services IPO closes today.
Popular Vehicles and Services IPO, which opened for subscription on Tuesday, March 12, will close today (Thursday, March 14). The Popular Vehicles IPO slowly sailed through two days in an otherwise sluggish market, and it hopes to be fully subscribed on the final day today. On the second day Popular Vehicles and Services IPO subscription status stood at 45%, as per data available on BSE. Although the employee portion has been soaring high in the last two days, the retail and non institutional investors (NII) portion is trying to make its way to be fully subscribed.
On the second day, the retail investors portion was subscribed to 78%, NII portion was booked 20%, and Qualified Institutional Buyers (QIB) portion is yet to be booked. The employee portion was subscribed 6.16 times.
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On the first day, Popular Vehicles and Services IPO was booked 27% as per BSE data.
It has reserved not more than 50% of the shares in the public issue for QIB, not less than 15% for NII, and not less than 35% of the offer is reserved for retail investors. Up to ₹1 crore worth of reserved equity shares have been allocated to the employee portion. When bidding in the employee reservation section, qualifying employees would receive a discount of Rs. 28 per equity share.
Popular Vehicles IPO price band was set in the range of ₹280 to ₹295 apiece of the face value of ₹2. Potential buyers may place bids for up to 50 shares, and even more.
Popular Vehicles offers comprehensive services for the whole life cycle of a vehicle, including sales of new and used cars, maintenance, the provision of spare parts, driving instruction, and the selling of insurance and financial products to third parties.
The company's listed peer as per the RHP is Landmark Cars Limited (with a P/E of 34.84).
Between March 31, 2022, and March 31, 2023, Popular Vehicles & Services Limited's profit after tax (PAT) climbed by 90.31% while its revenue grew by 40.42%.
Popular Vehicles IPO subscription status
Popular Vehicles IPO is fully subscribed. At 19:00 IST, the overall subscription status is 1.23 times, as per BSE data.
The retail investor portion has been subscribed to 1.05 times, the NII portion has been booked at 66%, and the QIB portion is booked at 1.97 times. The employee portion was subscribed to 7.59 times.
Popular Vehicles and Services IPO details
The Popular Vehicles and Services IPO has two components: a fresh issuance valued at ₹250 crore and an offer-for-sale (OFS) by the selling shareholder, BanyanTree Growth Capital II, LLC, of up to 11,917,075 equity shares with a face value of ₹2.
The company plans to use the net proceeds for various purposes, including general corporate purposes and the repayment of some loans, either fully or partially, that it and its subsidiaries, Popular Autoworks Private Limited (PAWL), Popular Mega Motors (India) Private Limited (PMMIL), Kuttukaran Green Private Limited (KGPL), Kuttukaran Cars Private Limited (KCPL), and Prabal Motors Private Limited (PMPL), have taken out.
The Popular Vehicles IPO's book running lead managers are ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, and the registrar is Link Intime India Private Ltd.
Popular Vehicles and Services IPO GMP today
Popular Vehicles IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹295 with no premium or discount in the grey market according to investorgain.com
Based on last 11 sessions grey market activities, today IPO GMP points downward and expects to drop more. The lowest GMP is ₹0, while the highest GMP is ₹33, according to investorgain.com analysts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Popular Vehicles and Services IPO Review
Dilip Davda
“Though the company has presence in four states, it has over 400 touch points and that makes it the leader in the segment with a partnership with a front running Indian player Maruti. The company will continue to shift its product mix to improve its bottom lines. Based on FY24 annualised earnings, though the issue appears fully priced, it is worth considering for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.
Sushil Finance Ltd
The brokerage claims that based on its NAV of Rs. 61.26 as of H1FY24, the issue is priced at a P/BV of 4.82. The firm uses diluted EPS for FY23 ( ₹10.22) and H1FY24 ( ₹6.38), and it asks for a PE multiple of 28.86x on the top end of the pricing band. 34.84x is the industry standard. The issue looks to be completely priced. Cash-rich investors may apply for the issuance given all the variables, risks, possibilities, and valuation.
Arun Kejriwal, founder of Kejriwal Research and Investment Services
Arun Kejriwal believes that both are issues Popular Vehicles and Services IPO and Krystal Integrated Services IPO are reasonably valued and are not expensive.
Kejriwal spoke at length about both the companies business where he explained that Popular Vehicles is a auto two-wheeler, four-wheeler, commercial vehicle, luxury car distributor, and its focus is now shifting towards maximising service revenue. So service revenue is a high-margin business. The ticket size is much smaller than a car vehicle. But they are now doing a significantly higher average than national car dealers are doing. That is improving their product and revenue picks. The focus area for them is the south and Maharashtra, so Maharashtra becomes contiguous to the south.
Further, speaking about Krystral Integrated he said that it is a large facility management services (FMS) company. Their focus area is a mixed 70% and 30% government, which includes state government, central government, and also private (70% is government, which includes central and state, and 30% is private). Their focus areas are healthcare and integrated financial management services (IFMS), where you provide a complete offering to the customer. They are also into the air force, railway stations, hertiage business, retial space, etc. It's a well-diversified business with three long vertices.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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