Popular Vehicles' IPO: Retail Subscriptions at 0.43x, NIIs at 0.09x on Day 1

12 Mar 2024 , 03:58 PM

Popular Vehicles’ IPO,  opened on Tuesday 12 Mar 2024, and ends on Thursday  14 Mar 2024. At the time of writing, on day 1 the retail portion of the offer was subscribed at 0.43 times, while Non-Institutional Investors (NIIs) subscribed 0.09 times. The QIB category has not received any subscriptions yet.

Popular Vehicles is a diversified automobile dealer in India with a fully integrated business model, covering the entire vehicle ownership life cycle. In FY23, the company achieved a 41% YoY growth in revenue to ₹4,875 Crore, and the profit after tax (PAT) surged by 90% to ₹64 Crore.

For the period ending September 2023, revenue from operations stood at ₹2,835 Crore, and profit was ₹40 Crore. ICICI Securities, Nuwama Wealth, and Centrum Capital are the book-running lead managers for the IPO.

The IPO, closing on March 14, includes a fresh equity issue of 84 lakh shares and an offer for sale (OFS) of 1.19 Crore shares by Banyan Tree Growth Capital.

The company plans to utilize the net proceeds for debt repayment and general corporate purposes. Popular Vehicles set a price band of ₹280-295 for its IPO, aiming to raise around ₹602 Crore at the upper end.

The IPO follows the book-building process, with 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

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