The company raised Rs 601.55 crore through IPO
BBN Bureau
KOCHI: Kerala-based Popular Vehicles and Services has failed to bring cheer to investors on its first day on the stock market. The share listed at Rs 289 on the NSE, a discount of 2 per cent to the issue price of Rs 295. The weak entry was in line with analyst estimates who had expected the scrip to list with little-to-no gains.
The IPO was subscribed only 1.23 times. Qualified institutional buyers showed relatively higher interest, subscribing 1.97 times the portion reserved for them, while retail investors subscribed 1.05 times their allotted quota of shares.
The company, which faces competition from Landmark Cars, successfully raised Rs 601.55 crore through its public issue at the upper price band. The IPO, which opened from March 12 to March 14, was mix of a fresh issue of shares worth Rs 250 crore and an offer for sale (OFS) of 1.19 crore equity shares worth Rs 351.55 crore.
Established in 1983, Popular Vehicles provides comprehensive services such as sales of new vehicles, vehicle servicing and repairs, and distribution of spare parts and accessories. It also facilitates pre-owned vehicle sales and exchanges and the operation of driving schools.
Popular Vehicles will use the proceeds from the issue to repay debt of its own and various subsidiaries, while the rest would be earmarked for general corporate purposes.
The company recorded a net profit of Rs 64.07 crore in FY23, up 90.3 per cent over a year-ago period. The company’s revenue surged 40.65 percent year-on-year to Rs 4,875 crore, while EBITDA (earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 35.5 percent to Rs 217.2 crore.
