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    Popular Vehicles and Services IPO fully subscribed on final day: Check subscription, GMP and other details

    Synopsis

    About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

    Popular Vehicles and Services IPO yet to sail through on final day: Check subscription, GMP and other detailsAgencies
    The initial public offer (IPO) of Popular Vehicles was fully subscribed on the final day of the bidding process. The issue, which was booked 1.18 times so far, received bids for 1.69 crore shares as against 1.44 crore shares on offer.

    The retail portion of the offer was booked 1x, followed by QIBs at 1.85x. The category reserved for non institutional investors was subscribed just 65%.

    About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

    The IPO, which closes on March 14, is a combination of fresh equity issue of 84 lakh shares and an offer for sale (OFS) of 1.19 crore shares, which will be offloaded by Banyan Tree Growth Capital.

    The company proposes to use the net proceeds for repayment of debt and other general corporate purposes.


    Popular Vehicles IPO review


    "The company’s Revenue/EBITDA/PAT grew at a CAGR of 29.8%/20.7%/40.6% during FY21-23 period. At the upper price band, the issue is valued at a P/E of 28.9x based on FY23 earnings, which we feel is fairly valued. We, therefore, recommend a “Subscribe” rating for the issue," said Stoxbox.


    Popular Vehicles IPO GMP


    According to market analysts, the current GMP of Popular Vehicles and Services is Rs 0 in the unlisted market.
    Also Read: Krystal Integrated Services IPO opens for subscription. Should you bid?

    Popular Vehicles IPO price band


    The automobile dealer has fixed a price band of Rs 280-295 for its maiden public offer. At the upper end, the company plans to raise about Rs 602 crore.

    Other details


    Popular Vehicles is a diversified automobile dealer in India in terms of revenue for FY23, having a fully integrated business model.

    It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.

    In FY23, Popular Vehicles clocked revenue growth of 41% year-on-year to Rs 4,875 crore, while profit after tax (PAT) jumped 90% to Rs 64 crore. For the period ended September 2023, revenue from operations were at Rs 2,835 crore and profit was at Rs 40 crore.

    ICICI Securities, Nuwama Wealth and Centrum Capital are the book running lead managers to the issue.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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