Popular Vehicles Makes Subdued Debut at 2% Discount

19 Mar 2024 , 09:50 AM

Popular Vehicles and Services, a Kerala-based automobile dealer, saw a lacklustre subscription to its shares, leading to a listing at a discount of 2%. On the NSE, the shares commenced trading at ₹289.20, representing a 1.97% dip from the issue price of ₹295. Similarly, on the BSE, the shares opened at ₹292, reflecting a 1.02% decrease from the issue price.

Despite the subdued listing, the IPO managed to garner a full subscription by the end of the bidding process. On the final day, the IPO received bids for 1.69 Crore shares, surpassing the 1.44 Crore shares on offer, reaching a subscription of 1.18 times.

The retail segment of the offer saw a subscription of 1 times, followed by QIBs at 1.85 times. However, the non-institutional investors’ category witnessed only a 65% subscription rate.

The public offer comprised fresh shares worth ₹250 Crore by the company and an offer-for-sale (OFS) of 1.19 Crore equity shares by private equity fund BanyanTree Growth Capital II LLC. The shares were offered in the range of ₹280 to ₹295 per share, with the total IPO size reaching slightly over ₹600 Crore and the market capitalization standing at ₹1,450 Crore at the upper end.

Currently, the promoters hold a 69.45% stake in the company, with the remaining stake owned by public shareholders, including BanyanTree, the largest shareholder. The three promoters – John K Paul, Francis K Paul, and Naveen Philip – each hold a 23.15% stake.

Proceeds from the net fresh issue, totaling ₹192 Crore, will be utilized for debt repayment, both for the company and certain subsidiaries. As of December 2023, the consolidated debt on the company’s books amounted to ₹637.06 Crore.