Popular Vehicles and Services shares list at 2% discount to IPO price

The issue of just crossed the full subscription at 1.23 times on the final day. At the upper price band, the was valued at a P/E of 28.9x based on FY23 earnings.

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

Also Read:

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

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.

Popular Vehicles automobile dealership business is categorised into three key segments --- passenger vehicles including luxury vehicles, commercial vehicles and electric two-wheeler and three-wheeler vehicles. These three segments contributed to the company's revenue from operations at Rs 1692 crore, Rs 961 crore and Rs 45 crore, respectively, during the six months period ended September 2023 period.

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.

The company’s Revenue, EBITDA and PAT grew at a CAGR of 29.8%, 20.7% and 40.6%, respectively during FY21-23 period.

ICICI Securities, Nuwama Wealth and acted as the book running lead managers to the issue.

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