Popular Vehicles to be India’s second listed auto dealership chain
NEW DELHI : Kerala-based auto dealership network Popular Vehicles is gearing up to become the second listed automotive dealer in India, following Landmark Cars’ ₹552 crore public share issue in December 2022. Popular Vehicles’ initial public offering, featuring an offer for sale by private equity firm BanyanTree Capital and a fresh issue of ₹250 crore, is set to open for subscription this month. BanyanTree holds a 34% stake in the company.
The remaining shareholding is evenly split among the company's three promoters. Popular Vehicles, having relaunched its IPO and enlisted new bankers, including Nuvama and ICICI Securities, is seeking to attract investor interest that was lacking in its previous attempt. Landmark Cars has demonstrated an impressive return of 65% since its listing in December 2022.
In its red herring prospectus filed with the Securities and Exchange Board of India, Popular Vehicles said it would use the proceeds from its IPO to repay debts incurred by various group entities as well as for general corporate purposes. The company operates passenger vehicle dealerships for Maruti Suzuki Ltd, Honda Cars, and Jaguar Land Rover (JLR), as well as commercial vehicle stores for Tata Motors Ltd and Bharat Benz. Additionally, it houses showrooms for three-wheeler maker Piaggio and e-two-wheeler manufacturer Ather Energy.
Although Popular Vehicles boasts a diversified dealership chain across segments, about 65% of its total sales emanate from its Maruti Suzuki dealerships. “A consolidation of dealer networks is anticipated in the coming years as carmakers have started preferring working with limited dealers," said Gaurav Vangaal, associate director at S&P Global Mobility. “This approach also reinforces trust and
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