Popular Vehicles & Services IPO to list on Tuesday. What does GMP signal?
Considering the upper price band of Rs 295, the stock is expected to see a flat or even a discounted listing, keeping in trend with the last few debuts, which were muted.
However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
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.
In FY23, Popular Vehicles clocked revenue growth of 41% year-on-year to Rs 4,875 crore, while profit after tax (PAT) jumped 90% to Rs 64 crore. For
