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Popular Vehicles And Services Private Limited

Popular Vehicles And Services Private Limited

Popular Vehicles & Services, a leading Indian diversified auto dealer, offers a comprehensive car ownership experience. Their services cover the entire life cycle, from selling new passenger and commercial vehicles (including electric two-wheelers and three-wheelers) to servicing, spare parts, pre-owned cars, driving schools, and financing

About Company

Popular Vehicles & Services is a diversified auto dealer that offers a complete car ownership experience to its customers. The company was founded in 1983 as a Maruti Suzuki dealership in Kerala and has since expanded its portfolio to include other passenger and commercial vehicles, electric two-wheelers and three-wheelers, pre-owned cars, driving schools, and financing services. The company is part of the Popular Group, which has a rich and varied experience in the automotive industry for more than six decades.

Popular Vehicles & Services has a strong presence in South India, with 67 dealerships across Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh. The company sells economy, premium, and luxury vehicles from various original equipment manufacturers (OEMs), such as Maruti Suzuki, Honda, Jaguar Land Rover, Tata Motors, BharatBenz, Piaggio, and Ather. The company also has a network of 82 service centers, 17 driving schools, and 11 used car outlets.

The company is known for its customer-centric approach and innovative offerings. For instance, the company launched the "Popular Unlimited Car Care Package", a unique after-sales service scheme that was appreciated by Maruti Suzuki and customers alike. The company also offers various financing options to its customers through its subsidiary Kuttukaran Leasing and Investment Ltd.

The company has also been recognized for its excellence in sales and service by various OEMs. The company has received several awards from Maruti Suzuki, such as the Platinum Award for Sales Performance (2019-20), the Platinum Award for Service Performance (2019-20), and the Best Nexa Dealer Award (2019-20). The company has also received awards from Honda, such as the Best Dealer Award for Customer Satisfaction (2019-20) and the Best Dealer Award for Sales Volume (2019-20).

Popular Vehicles And Services Private Limited

Company Financials

Popular Vehicles And Services Private Limited

IPO Timeline (Tentative Timetable)

# Popular Vehicles & Services IPO: A Timeline of Events

  • The issue, which comprises a fresh issue of Rs 250 crores and an offer for sale of Rs 351.55 crores, will open for subscription on March 12, 2024 and close on March 14, 2024. The price band for the IPO is Rs 280 to Rs 295 per share.

  • March 11, 2024: The anchor book for the IPO opened and closed on the same day. The company allotted 6.9 million shares to 15 anchor investors at Rs 295 per share, raising Rs 203.55 crores. The anchor investors included mutual funds, insurance companies and foreign portfolio investors. March 12, 2024: The IPO opened for subscription for all categories of investors.

  • March 14, 2024: The IPO closes for subscription with an overwhelming demand from all categories of investors. 

  • March 15, 2024: The basis of allotment for the IPO will be finalized by the book running lead managers and the registrar. The allotment status will be made available on the website of Link Intime India Private Ltd.

  • March 18, 2024: The refunds for the unsuccessful applicants will be initiated and the shares will be credited to the demat accounts of the successful applicants.

  • March 19, 2024: The shares of Popular Vehicles & Services willbe listed on BSE and NSE. 

Popular Vehicles And Services Private Limited

IPO Details

Competitive Strength

Popular Vehicles & Services (PVS) is one of the largest and most diversified auto dealers in India, with a presence in various segments of the automotive industry, such as passenger cars, two-wheelers, commercial vehicles, electric vehicles, construction equipment, and used cars. PVS is also a leading dealer for Maruti Suzuki, the largest car manufacturer in India, with a market share of over 50%. In this blog, we will explore some of the competitive strengths of PVS that make it a preferred choice for customers and investors.

1. Wide network and customer reach: PVS has a wide network of 113 outlets across Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh, covering both urban and rural markets. PVS offers sales, service, spare parts, accessories, insurance, finance, exchange, and driving school facilities under one roof. PVS also has a strong online presence and digital capabilities to cater to the changing preferences of customers. PVS sells over 70,000 new vehicles and 25,000 used vehicles annually and services over 1 million vehicles.

2. Diversified portfolio and product mix: PVS has a diversified portfolio of products and services that cater to different segments and needs of customers. PVS deals with passenger cars from Maruti Suzuki, Hyundai, Toyota, and Lexus; two-wheelers from Bajaj, KTM, and Harley Davidson; commercial vehicles from Tata Motors and Eicher; electric vehicles from Ather Energy and Mahindra Electric; and construction equipment from JCB. PVS also offers pre-owned cars from various brands through its U Trust and H Promise divisions. PVS has a balanced product mix of entry-level, mid-range, premium, and luxury vehicles that help it to tap into different customer segments and price points.

3. Strong brand equity and customer loyalty: PVS has a strong brand equity and customer loyalty that stems from its long association with Maruti Suzuki and other reputed brands. PVS has been a dealer for Maruti Suzuki since 1983 and has won several awards and accolades for its performance and customer satisfaction. PVS has also established itself as a trusted and reliable partner for other brands that it represents. PVS has a loyal customer base that spans across generations and geographies. PVS has a high retention rate of over 80% for its new car customers and over 90% for its service customers.

4. Experienced management and skilled workforce: PVS has an experienced management team and a skilled workforce that have been instrumental in driving its growth and profitability. PVS is led by Mr. Saju K Thomas, who belongs to the well-known Kuttukaran family that has been in the automobile industry for over six decades. Mr. Thomas has been the Managing Director of PVS since 1983 and has been instrumental in diversifying its portfolio and expanding its network. PVS also has a professional team of over 6,000 employees who are trained and certified by the respective OEMs. PVS invests heavily in training and development of its employees to ensure quality service and customer satisfaction.

5. Robust financial performance and growth prospects: PVS has a robust financial performance and growth prospects that reflect its competitive strengths and market position. PVS has a revenue of over Rs 3,000 crore and a profit after tax of over Rs 100 crore for the financial year 2020-21. PVS has a healthy balance sheet with low debt and high liquidity. PVS also has a strong cash flow generation from its operations that enables it to invest in new opportunities and expansion plans. PVS is well-positioned to leverage the growth potential of the Indian automotive industry, which is expected to recover from the impact of the pandemic and grow at a CAGR of over 10% in the next five years.

Company's Past Financial Performance

Over the past three years, Popular Vehicles & Services Limited has demonstrated notable financial performance:

  1. Revenue / Turnover: The company’s revenue or turnover is over INR 500 crore.

  2. Net Worth: The net worth of the company has increased by 13.99% during this period.

  3. EBITDA: The EBITDA (earnings before interest, tax, depreciation, and amortization) has increased by 43.18%.

  4. Total Assets: The total assets of the company have increased by 3.76%.

  5. Liabilities: The company’s liabilities have increased by 6.20%.

Additionally, for the financial year ending on 31 March 2023, Popular Vehicles & Services reported the following key financial metrics:

  • Operating Revenue: Over INR 500 crore

  • EBITDA: 43.18%

  • Net Worth: 13.99%

  • Debt/Equity Ratio: 1.04

  • Return on Equity: 12.61%

  • Total Assets: 3.76%

  • Trade Receivables: 22.86%

  • Trade Payables: -20.60%

  • Current Ratio: 1.02

Please note that these figures reflect the company’s financial health and growth during the specified period.

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