Kerala-based Popular Vehicles and Services launches IPO to raise 602 crore

Popular Vehicles and Services, a leading automobile dealer based in Kerala, has launched its Initial Public Offering (IPO), aiming to raise approximately Rs 602 crore.

The IPO, which opened on March 12, will close on March 14. This public offering consists of a fresh issue of Rs 250 crore and an offer-for-sale (OFS) of 1.19 crore equity shares by BanyanTree Growth Capital II LLC. The price band is set between Rs 280 to Rs 295 per share, with a minimum application size of 50 shares.

Raising money from institutional investors

The company has attracted significant interest from institutional investors, raising Rs 180.17 crore through its anchor book. Esteemed investors such as HDFC Mutual Fund, Quant Mutual Fund, and HSBC Global Investment Funds, among others, have participated, showcasing confidence in the company's business model and growth prospects.

How well Popular Vehicles and Services is performing financially?

Popular Vehicles and Services boasts a vast network, including 59 showrooms, 126 sales outlets, and 134 authorized service centres across key regions in India. For FY23, the company reported a 41% year-on-year increase in revenue, amounting to Rs 4,875 crore, and a 91% surge in net profit to Rs 64 crore.

The company's operations span the automotive retail value chain, offering new and pre-owned vehicle sales, services and repairs, spare parts distribution, and financial and insurance product sales.