Popular Vehicles and Services shares close at ₹276.45

19 Mar 2024 , 05:10 PM

On Tuesday, Popular Vehicles and Services’ shares made their market closed 9.5% discount. On the NSE the shares closed at ₹276.45, whereas the offer price was ₹295 for the stock.

The company’s shares had no premium in the unlisted market prior to listing.

On the last day, the Popular Vehicles issue narrowly avoided reaching the full subscription at 1.23 times. Based on FY23 profits, the IPO was valued at a P/E of 28.9x at the higher price range.

The initial public offering (IPO), which concluded on March 14, consisted of an offer for sale (OFS) of 1.19 Crore shares that Banyan Tree Growth Capital had offloaded along with a fresh equity issue of 84 lakh shares.

The business plans to use the net revenues for general corporate objectives, including debt reduction.

In terms of revenue for FY23, Popular Vehicles is a diversified automotive dealer in India with a fully integrated business strategy.

It handles every aspect of a car owner’s life, including selling new cars, maintaining and repairing them, giving out spare parts and accessories, facilitating the trade-in and sale of used cars, running driving schools, and assisting in the marketing of third-party financial and insurance products.

The Popular cars car dealership operates in three primary business segments: commercial cars, electric two- and three-wheeler vehicles, and passenger automobiles, including luxury vehicles. During the six months that concluded in September 2023, these three segments brought in a total of ₹1692 Crore, ₹961 Crore, and ₹45 Crore from the company’s operations.

Popular Vehicles recorded a 41% annual sales rise to ₹4,875 Crore in FY23, while profit after tax (PAT) increased by 90% to ₹64 Crore. The business brought in ₹2,835 Crore in revenue and made ₹40 Crore in profit by September 2023.

During the FY21–2023 period, the company’s revenue, EBITDA, and PAT grew at a CAGR of 29.8%, 20.7%, and 40.6%, respectively.

The issue’s book running lead managers were Centrum Capital, Nuwama Wealth, and ICICI Securities.

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