The Popular Vehicles and Services IPO commenced with a slow uptake on Day 1, witnessing full subscription of the employee portion. Retail and non-institutional investors exhibited gradual interest, resulting in an overall subscription status of 27%, as per data from BSE.
Retail investors subscribed to 47% of their portion, while non-institutional investors secured 11%. The Qualified Institutional Buyers (QIB) segment remains unbooked. The employee segment showed robust interest, with a subscription rate of 3.83 times.
The IPO, which opened on Tuesday, March 12, and closes on Thursday, March 14, offers shares in the price band of ₹280 to ₹295 per equity share with a face value of ₹2. The lot size is set at 50 equity shares, with multiples available thereafter. The company amassed ₹180.17 crore from anchor investors on Monday, March 11.
Popular Vehicles & Services Limited caters to various automotive needs, including sales of new and used cars, maintenance and repair services, spare parts distribution, driving schools, and insurance and financial product offerings. Its listed peer, Landmark Cars Limited, holds a P/E of 34.84, as per the RHP.
Between March 31, 2022, and March 31, 2023, the company recorded a 90.31% increase in profit after tax (PAT) and a 40.42% growth in revenue.
The IPO has received bids for 39,27,750 shares against 1,44,15,110 shares on offer. Retail investors bid for 34,22,200 shares against 72,83,477 shares available, while non-institutional investors bid for 3,49,350 shares against 31,21,490 shares on offer. The QIB portion remains undersubscribed, with only 4,100 shares bid against 39,70,461 shares available. The employee segment received bids for 1,52,100 shares against 39,682 shares available.
The IPO comprises a fresh issue of ₹250 crore and an offer-for-sale (OFS) of up to 11,917,075 equity shares by the selling shareholder, BanyanTree Growth Capital II, LLC. Proceeds will be allocated to various purposes, including loan repayment and general corporate needs.
ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited serve as book running lead managers, with Link Intime India Private Ltd. as the registrar. The grey market premium stands at +50, indicating a trading premium of ₹50, and suggests an estimated listing price of ₹271 per share, a 22.62% increase over the IPO price.
