Popular Vehicles Secures ₹180 Crore from Anchor Investors

12 Mar 2024 , 09:21 AM

Kerala-based automotive dealer Popular Vehicles and Services successfully raised ₹180.17 Crore from institutional investors through an anchor book launched on March 11, a day ahead of the IPO opening on March 12. The subscription period for the IPO will close on March 14.

Popular Vehicles disclosed the allocation of 61,07,325 equity shares to anchor investors at ₹295 per share. Notable investors such as HDFC Mutual Fund, Quant Mutual Fund, HSBC Global Investment Funds, Lionglobal Investment Funds, BofA Securities Europe SA, Pinebridge Global Funds, and ITI Mutual Fund participated in the anchor book.

Additionally, Citigroup Global Markets Mauritius, SBI General Insurance Company, LC Pharos Multi-Strategy Fund, 3P India Equity Fund, Integrated Global Strategies Asia, and Copthall Mauritius Investment were among the other participants.

HDFC Mutual Fund emerged as the largest investor in the IPO, acquiring equity shares worth ₹74 Crore through the anchor book.

Popular Vehicles and Services aims to raise ₹601.55 Crore through its IPO at the upper price band. The IPO comprises a fresh issue of ₹250 Crore worth of shares by the company and an offer-for-sale of 1.19 Crore equity shares worth ₹351.55 Crore by private equity fund BanyanTree Growth Capital II, LLC.

Currently, BanyanTree holds the largest shareholding in the company at 30.36%, while promoters John K Paul, Francis K Paul, and Naveen Philip each hold a 23.15% stake.

The price band for the IPO is set at ₹280-295 per share. Proceeds from the fresh issue, amounting to ₹192 Crore, will be utilized for debt repayment, with the remaining funds allocated for general corporate purposes.

ICICI Securities, Nuvama Wealth Management, and Centrum Capital serve as the merchant bankers for the IPO.