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Popular Vehicles and Services IPO Booked 45% on Last Day


Popular Vehicles and Services IPO Last Day Today


The subscription time for the Popular Vehicles and Services IPO, which began on Tuesday, March 12, will end today, Thursday, March 14. In a generally slow market, the Popular Vehicles IPO proceeded slowly throughout the first two days, intending to be completely subscribed on the last day, which is today. According to data published on BSE, the subscription status for the Popular Vehicles and Services IPO on its second day was 45%. While the employee segment has experienced significant growth over the past two days, the retail and non-institutional investors (NII) segment is striving to reach full subscriptions.


On the second day, 20% of the NII portion was booked, 78% of the retail investors portion was subscribed to, and the Qualified Institutional Buyers (QIB) portion has not yet been booked. Sixteen subscribers made up the employee portion.


Popular Vehicles and Services Limited, a renowned name in the automotive sector, traces its origins back to the vibrant city of Kochi. The company was founded by a visionary promoter family with a passion for automobiles. Their journey began in the year 1983, intending to provide high-quality vehicles and exceptional service to the people of Kerala. The inception of Popular Vehicles and Services Limited was fueled by the need to create a reliable and trustworthy vehicle dealership that could cater to the growing demand for automobiles in the region.


It was the vision of the late Mr. K. P. Paul, who foresaw the potential of an organized automotive service sector in a rapidly modernizing India.


The business started with a simple yet profound purpose: to provide high-quality vehicles and unparalleled services to the burgeoning middle class of India. This vision was rooted in the belief that access to reliable transportation could significantly enhance the quality of life and economic productivity of individuals and businesses alike.


Over the years, Popular Vehicles and Services Limited has expanded its footprint across various cities, evolving from a single dealership to a conglomerate with diversified interests in automotive sales, services, and financing. The company's history is embellished with milestones that reflect its commitment to excellence and customer satisfaction.


It has set aside a minimum of 15% of the shares for NII, a maximum of 50% of the shares for QIB, and a minimum of 35% of the offer for retail investors in the public offering. The employee component has been allotted reserved equity shares valued up to ₹1 crore. Qualifying employees would receive an additional discount of Rs. 28 per equity share while bidding in the employee reservation sector.


IPO Details and Subscription Dates


The PVSL IPO opened for subscription on March 12th and closed on March 14th, 2024. The issue offered 20,395,205 equity shares with a face value of ₹2 each, aiming to raise a total of ₹601.55 crores. The price band was set at ₹280 to ₹295 per share, with a minimum order quantity of 50 shares (one lot).


Factors Affecting Subscription


While the reasons for the varied subscriptions across categories are not officially disclosed, some potential factors could be considered:


  • Market Conditions: The overall stock market sentiment can influence investor decisions. Any prevailing volatility might have caused some caution from institutional investors.

  • Company Financials: Investors likely scrutinized PVSL's financial performance and future growth prospects before making an investment decision.

  • IPO Valuation: The price band of ₹280-₹295 per share might have been a factor for some investors, especially in the NII category.

What Happens Next?


The allotment of shares for the PVSL IPO is expected to be finalized on March 15, 2024. Investors who applied for the IPO can check their application status online through the registrar's website or their broker's platform.


Assuming successful allotment, the tentative listing date for the PVSL shares is set for March 19, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). Investors who are allotted shares will then be able to trade them on these exchanges.


Company Profile


Revenue, Sales, and Profit


PVSL has consistently demonstrated strong financial performance with a steady increase in revenue year over the years. This growth trajectory highlights the company's ability to expand its market share and customer base effectively.


For the fiscal year that ended in March of FY23, the company reported a rise in net profit of ₹64.07 crore, or a 90.3% increase. Revenue increased from ₹3,484.20cr in FY22 to ₹4,892.63cr in FY23. The operating margin was under pressure, too, as it dropped from 4.6% to 4.45% in the prior year. With ₹2,835 crore in revenue, the net profit for the half of FY24 ended in September was ₹40 crore.


By maintaining a balance between cost-effective production and premium pricing strategies, PVSL maximizes its profitability.


Distribution Network and Geographic Reach


Popular Vehicles and Services Limited, a renowned automotive dealership in India, boasts an extensive distribution network and a wide geographical reach that spans several states. With a strong presence in Kerala, Tamil Nadu, Karnataka, and Maharashtra, the company offers a diverse range of vehicles from various esteemed manufacturers. Their showrooms and service centers are strategically located in major cities and towns, ensuring accessibility and convenience for customers. The company's commitment to providing high-quality vehicles and exceptional service has cemented its reputation as a trusted name in the automotive industry.


Unique Features


Popular Vehicles and Services Limited is renowned for its exceptional range of high-quality vehicles, catering to a diverse clientele with varying needs. The company stands out for its commitment to sustainability, offering a selection of eco-friendly vehicles that combine efficiency with environmental responsibility. Their after-sales service is exemplary, providing customers with comprehensive support and maintenance services. Additionally, the firm's innovative use of technology enhances the driving experience, ensuring safety and convenience for all users. With a focus on customer satisfaction, Popular Vehicles and Services Limited continues to be a leader in the automotive industry.

 

Investment in Research and Development


Popular Vehicles and Services Limited has consistently prioritized investment in research and development (R&D), recognizing it as a crucial driver of innovation and market competitiveness. Their strategic allocation of resources towards R&D has enabled the development of cutting-edge technologies, enhancing the performance, safety, and environmental sustainability of their vehicle lineup. This commitment to R&D not only reflects their dedication to technological advancement but also demonstrates a forward-thinking approach to addressing the evolving needs and challenges of modern transportation.

 


Conclusion


The curtain has closed on the Popular Vehicles & Services (PVSL) IPO subscription window. While the overall response wasn't a complete blowout, the retail investor category displayed strong interest, a positive sign for the company's future. With allotment and listing on the horizon, all eyes will be on PVSL's performance in the secondary market. Only time will tell if the company can navigate the currents and deliver value to its newly minted shareholders. Stay tuned for further updates as PVSL embarks on its journey as a publicly traded company!


FAQs


Q: What is Popular Vehicles & Services Limited (PVSL)?

PVSL is a leading automobile dealership group in India, operating across various segments like passenger vehicles, two-wheelers, and commercial vehicles. They offer sales, service stations, and spare parts distribution.


Q: When did the PVSL IPO take place?

The subscription window for the PVSL IPO was open from March 12th to March 14th, 2024.


Q: What was the issue size and price band for the PVSL IPO?

The IPO aimed to raise ₹601.55 crores by offering 20,395,205 equity shares with a face value of ₹2 each. The price band was set at ₹280 to ₹295 per share.


Q: What was the subscription status of the PVSL IPO?

The overall subscription for the IPO stood at around 0.80 times. Retail investors showed the highest interest with a subscription of around 0.94 times, while QIBs subscribed at 0.88 times and NIIs at a mere 0.27 times.


Q: What are the next steps for the PVSL IPO?

Share allotment is expected to be finalized by March 15th, 2024. If successful, listing on the BSE and NSE is tentatively set for March 19th, 2024. Investors can then trade their allotted shares on these exchanges.


Q: Why might the subscription have been mixed across investor categories?

Several factors could have influenced subscription levels. Market volatility, company financials, and the IPO valuation might have played a role.


Q: Where can I find more information about PVSL's financials?

Publicly available financial information for PVSL should be readily available. However, for a more in-depth analysis, consulting the IPO prospectus or seeking advice from a qualified financial advisor is recommended.


Q: Is the PVSL IPO a good investment opportunity?

This article cannot provide financial advice. Conducting your own research and consulting a financial advisor are crucial steps before making any investment decisions.


Q: How can I check the allotment status of my PVSL IPO application?

Investors can check their application status online through the registrar's website or their broker's platform after the allotment is finalized.


Q: Where can I trade PVSL shares after the listing?

Once listed, PVSL shares will be tradable on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).



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