Popular Vehicles & Services Ltd Share Price – NSE  /  BSE

Trading, Small Cap

CRISIL said that the upgrade factors in strengthening of the group’s credit risk profile post the initial public offer (IPO) during March 2024.

The group has a top line of Rs 4,875 crore for fiscal 2023 with operating profitability of over 4.6%. The group reported revenue of Rs 2,850 crore for the first half of fiscal 2024 with earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 4.6%.

Fresh equity of about Rs 250 crore raised through the IPO would be used to reduce debt of around Rs 192 crore and the rest would be used for general corporate purposes and kept as additional liquidity. This would strengthen the financial profile of the group. With lower debt, debt protection metrics and liquidity will also see an improvement in this fiscal.

The ratings reflect the group's established market position and healthy relationship with key suppliers in the automobile (auto) dealership business and healthy financial risk profile. These strengths are partially offset by geographical concentration, exposure to intense competition and susceptibility to cyclicality in the auto industry.

Popular Vehicles and Services is the one of the largest authorised dealerships for Maruti Suzuki India Ltd (MSIL) vehicles in India. Its subsidiaries and step down subsidiaries are in the dealership business of Honda Cars India, Jaguar Land Rover India Ltd, Tata Motors Ltd (Commercial Vehicles) and Daimler India Commercial Vehicles (Bharat Benz) among others.

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Popular Vehicles & Services will hold a meeting of the Board of Directors of the Company on 8 April 2024.

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The scrip was listed at Rs 292, exhibiting a discount of 1.02% to the issue price.

So far, the stock has hit a high of 292 and a low of 262.90. On the BSE, over 1.95 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Popular Vehicles and Services was subscribed 1.23 times. The issue opened for bidding on 12 March 2024 and closed on 14 March 2024. The price band of the IPO was fixed at Rs 280 to 295 per share.

The IPO comprised fresh issue of equity shares up to Rs 250 crore and an offer for sale of 1,19,17,075 equity shares, aggregating up to Rs 351.55 crore, by BanyanTree.

The objectives for the fresh issue include Rs 192 crore for repayment and/or pre-payment of certain borrowings, and the remaining amount for general corporate purposes.

Popular Vehicles and Services is an automobile dealer. The company caters to the complete life cycle of vehicle ownership, from sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, facilitating sale and exchange of preowned vehicles and sale of third-party financial and insurance products, and operating driving schools.

The company categorizes its automobile dealership business into three key segments: passenger vehicles including luxury vehicles; commercial vehicles and electric two-wheelers and three-wheelers.

The firm reported a net profit of Rs 40.05 crore and sales of Rs 2,835 crore for the six months ended on 30 September 2023.

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The equity shares of Popular Vehicles & Services (Scrip Code: 544144) are listed effective 19 March 2024 and admitted to dealings on the Exchange in the list of ''B'' Group Securities.

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