Popular Vehicles and Services IPO receives lukewarm response on day 1, issue booked 27%; check GMP

  • Popular Vehicles and Services IPO opens for subscription with price band of 280-295 per share. Employee portion subscribed 3.83 times. Retail and non-institutional investors show gradual response

Dhanya Nagasundaram
Published12 Mar 2024, 05:27 PM IST
Popular Vehicles and Services IPO opened for subscription today (Tuesday, March 12) and will close on Thursday, March 14.
Popular Vehicles and Services IPO opened for subscription today (Tuesday, March 12) and will close on Thursday, March 14. (https://www.popularmaruti.com/)

Popular Vehicles and Services IPO was off to a sluggish start on Day 1. The issue's employee portion was fully booked. Retail and non-institutional investors responded gradually to the issue. The overall subscription status was 27%, as per BSE data.

The retail investors portion has been subscribed 47%, Non Institutional Investors (NII) portion has been booked 11%, and Qualified Institutional Buyers (QIB) portion is yet to be booked. The employee portion has been subscribed 3.83 times.

It has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Also Read: Popular Vehicles IPO opens today: GMP, subscription status, review, other details. Apply or not?

The employee portion has been reserved equity shares aggregating up to 1 crore. A discount of 28 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Popular Vehicles and Services IPO opened for subscription today (Tuesday, March 12) and will close on Thursday, March 14. The price band has been fixed in the range of 280 to 295 per equity share of the face value of 2. Popular Vehicles and Services IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter.

Also Read: Popular Vehicles and Services IPO: Price band set at 280-295 apiece, check issue details, key dates, more

Popular Vehicles and Services IPO details.

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Popular Vehicles and Services IPO garnered 180.17 crore from anchor investors on Monday, March 11.

The company handles every aspect of owning a car, including selling new cars, maintaining and repairing them, giving out spare parts and accessories, helping to buy and sell used cars, running driving schools, and helping to sell insurance and financial products from third parties.

Also Read: Popular Vehicles and Services IPO: Anchor investors pick shares worth 180 crore ahead of public issue

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 and Services IPO Subscription Status 

Popular Vehicles and Services IPO has received bids for 39,27,750 shares against 1,44,15,110 shares on offer, according to data from the BSE.

The retail investors' portion received bids for 34,22,200 shares against 72,83,477 shares on offer for this segment.

The non-institutional investors' portion received bids for 3,49,350 shares against 31,21,490 on offer for this segment.

The Qualified Institutional Buyers (QIBs) portion have received 4,100 shares against 39,70,461 shares on offer for this segment.

The employee portion have received 1,52,100 shares against 39,682 shares on offer for this segment.

Also Read: Popular Vehicles IPO opens next week. GMP, review, other details of upcoming IPO

Popular Vehicles and Services IPO details

Popular Vehicles and Services IPO comprises a fresh issue of 250 crore, and an offer-for-sale (OFS) of up to 11,917,075 equity shares of face value of 2 each by the selling shareholder, BanyanTree Growth Capital II, LLC.

The company intends to allocate the net proceeds to finance various goals, including the complete or partial repayment and/or prepayment of certain loans obtained by the company 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); together with general corporate purposes.

The Popular Vehicles & Services 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.

Also Read: Popular Vehicles & Services IPO: From price band to GMP, here are 10 things to know about the upcoming public issue

Popular Vehicles and Services IPO GMP today 

Popular Vehicles IPO GMP today or grey market premium is +5. This indicates Popular Vehicles and Services share price were trading at a premium of 5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Popular Vehicles and Services share price was indicated at 300 apiece, which is 1.69% higher than the IPO price of 295.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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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First Published:12 Mar 2024, 05:27 PM IST
HomeMarketsIPOPopular Vehicles and Services IPO receives lukewarm response on day 1, issue booked 27%; check GMP

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