Popular Vehicles and Services shares list at 2% discount to IPO price
Popular Vehicles and Services debuted on the exchanges with a discount of 2% on Tuesday. The stock listed at Rs 289.2 on NSE, compared to an offer price of Rs 295. Meanwhile, the stock listed at Rs 292, down 1% on BSE.
Ahead of the listing, the company's shares had no premium in the unlisted market.
The issue of Popular Vehicles just crossed the full subscription at 1.23 times on the final day. At the upper price band, the IPO was valued at a P/E of 28.9x based on FY23 earnings.
The IPO, which closed on March 14, was a combination of fresh equity issue of 84 lakh shares and an offer for sale (OFS) of 1.19 crore shares, which were offloaded by Banyan Tree Growth Capital.
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The company proposes to use the net proceeds for repayment of debt and other general corporate purposes.
Popular Vehicles is a diversified automobile dealer in India in terms of revenue for FY23, having a fully integrated business model.
It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.
Popular Vehicles automobile dealership business is categorised into three key segments — passenger vehicles including luxury vehicles, commercial vehicles and electric two-wheeler and
