Popular vehicles and services are targeting the mainstream market with a launch of Rs 601.55 crore IPO. A mix of fresh numbers and offering – the anchor book of the number opens on March 11th.
Here are all the key details of the public offering.
1.) Listing Dates
The IPO will open for listing on March 12th March 2024. and will close on March 14, 2024.
2.) Price range
The price limit of the offer is set at 280-295 rupees per share.
3.) Details of the offer
The offer includes a new share issue of the company worth 250 million rupees and an offer for sale (OFS) of 1,19,17,075 own shares by the private equity fund BanyanTree Growth Capital II LLC.
The promoters own 69. 45 percent of the company and the rest is owned by public shareholders. , including BanyanTree, which is the company’s largest shareholder. The company’s promoters John K Paul, Francis K Paul and Naveen Philip each hold 23.15 percent.
4.) Objectives of the Issue
The car dealer plans to use Rs 192 crore from the new net issue to repay debt. own and certain subsidiaries and the rest is held for general corporate purposes.
5.) Lot Size
Investors can bid for a minimum of 50 shares and multiples thereof. So the minimum investment for retail investors would be Rs 14,000 (50 (Lot Size) x Rs 280 (Lower Price Range)). At the top end, the offer amount goes up to Rs 14,750.
6.) Company Profile
19883. Established in 2010, Popular Vehicles serves the entire vehicle ownership lifecycle, from new vehicle sales, vehicle maintenance and repair to spare parts distribution. parts and accessories to facilitate the sale and exchange of used vehicles and the operation of driving schools.
7 .) Company Financials
The company posted a net profit growth of 90.3% at Rs.64.07 billion for the year ended FY23. The company’s revenue increased by 40.65 percent to 4,875 million compared to last year. EBITDA (earnings before interest, taxes, depreciation and amortization) also grew significantly, rising by 35.5 percent to 217.2 billion during the same period.
8.) Managers
ICICI Securities, Nuvama Wealth Management and Centrum Capital are the main ones managers of the company. books while Link Intime India is the subject insurer.
9.) Key Risks
i.) The Company recognizes significant dependence on its two OEMs namely Maruti Suzuki and Tata Motors (Commercial). This significant reliance on OEMs and restrictions due to dealer agreements poses a potential risk to the Company’s operations and overall business prospects.
ii.) A large portion of the Company’s operations are concentrated in the states of Kerala, Tamil Nadu and Karnataka. Any adverse developments, including natural disasters, may adversely affect the Company’s business in these states.\iii.) Profits from maintenance and repair business and distribution of parts and accessories may be subject to specific pricing guidelines. OEMs that could harm the Company’s financial condition and results of operations.
iv.) The Company relies on independent contractors and third party customer service providers to provide support services. Failure to meet any obligations may harm the reputation, business, results of operations and cash flows of the company.
10.) Date of listing
Popular vehicles and services are likely to be listed on BSE and NSE. Initially, the listing date was set for Tuesday, March 19, 2024.