Popular Vehicles and Services IPO last day today: Should you apply to the issue? Check GMP, review, subscription status

Also Read: Popular Vehicles and Services IPO tries to sail through on day 2 in an overall subdued market; GMP falls sharply

On the second day, the retail investors portion was subscribed to 78%, NII portion was booked 20%, and Qualified Institutional Buyers (QIB) portion is yet to be booked. The employee portion was subscribed 6.16 times.

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On the first day, Popular Vehicles and Services IPO was booked 27% as per BSE data.

Also Read: Popular Vehicles and Services IPO Day 2: Check GMP, review, subscription status. Should you subscribe to the issue?

It has reserved not more than 50% of the shares in the public issue for QIB, not less than 15% for NII, and not less than 35% of the offer is reserved for retail investors. Up to ₹1 crore worth of reserved equity shares have been allocated to the employee portion. When bidding in the employee reservation section, qualifying employees would receive a discount of Rs. 28 per equity share.

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Popular Vehicles IPO price band was set in the range of ₹280 to ₹295 apiece of the face value of ₹2. Potential buyers may place bids for up to 50 shares, and even more.

Also Read: Popular Vehicles IPO opens today: GMP, subscription status, review, other details. Apply or not?

Popular Vehicles offers comprehensive services for the whole life cycle of a vehicle, including sales of new and used cars, maintenance, the provision of spare parts, driving instruction, and the selling of insurance and financial products to third parties.

The company’s listed peer as per the RHP is Landmark Cars Limited (with a P/E of 34.84).

Between March 31, 2022, and March 31, 2023, Popular Vehicles & Services Limited’s profit after tax (PAT) climbed by 90.31% while its revenue grew by 40.42%.

Also Read: Popular Vehicles & Services IPO: From price band to GMP, here are 10 things to know about the upcoming public issue

Popular Vehicles and Services IPO details 

Popular Vehicles and Services IPO consists of a fresh issue worth ₹250 crore, and an offer-for-sale (OFS) of up to 11,917,075 equity shares of face value of ₹2 apiece by the selling shareholder, BanyanTree Growth Capital II, LLC.

The net proceeds will be used by the company for a number of purposes, such as general corporate purposes and the full or partial repayment and/or prepayment of certain loans taken out by the company and its subsidiaries, Popular Autoworks Private Limited (PAWL), Popular Mega Motors (India) Private Limited (PMMIL), Kuttukaran Green Private Limited (KGPL), Kuttukaran Cars Private Limited (KCPL), and Prabal Motors Private Limited (PMPL).

The Popular Vehicles IPO’s book running lead managers are ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, and the registrar is Link Intime India Private Ltd.

Also Read: Popular Vehicles IPO: Peer comparison to management – 7 key things to know from RHP

Popular Vehicles and Services IPO GMP today

Popular Vehicles IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹295 with no premium or discount in the grey market according to investorgain.com

Based on last 11 sessions grey market activities, today IPO GMP points downward and expects to drop more. The lowest GMP is ₹0, while the highest GMP is ₹33, according to investorgain.com analysts.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Popular Vehicles and Services IPO receives lukewarm response on day 1, issue booked 27%; check GMP

Popular Vehicles and Services IPO Review 

Dilip Davda

“Though the company has presence in four states, it has over 400 touch points and that makes it the leader in the segment with a partnership with a front running Indian player Maruti. The company will continue to shift its product mix to improve its bottom lines. Based on FY24 annualised earnings, though the issue appears fully priced, it is worth considering for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Sushil Finance Ltd 

The brokerage claims that based on its NAV of Rs. 61.26 as of H1FY24, the issue is priced at a P/BV of 4.82. The firm uses diluted EPS for FY23 ( ₹10.22) and H1FY24 ( ₹6.38), and it asks for a PE multiple of 28.86x on the top end of the pricing band. 34.84x is the industry standard. The issue looks to be completely priced. Cash-rich investors may apply for the issuance given all the variables, risks, possibilities, and valuation.

Also Read: Popular Vehicles and Services IPO: Anchor investors pick shares worth ₹180 crore ahead of public issue

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 14 Mar 2024, 08:54 AM IST