Popular Vehicles & Services IPO: Yet To Be Fully Subscribed; GMP Hints Muted Listing; Check Status

Popular Vehicles and Services' Initial Public Offering (IPO), which commenced subscription on Tuesday, March 12, is set to conclude today, March 14. While the IPO witnessed steady traction over the past two days, subscription rates remain moderate as it inches closer to its closing.

As of the second day, data from the Bombay Stock Exchange (BSE) reveals that the Popular Vehicles IPO achieved a subscription status of 45%. Notably, the employee portion witnessed robust demand, being oversubscribed by 6.16 times. However, the retail and non-institutional investors (NII) segments are yet to reach full subscription, with retail investors accounting for 78% and the NII portion at 20%.

On the final day of bidding, data from the Bombay Stock Exchange (BSE) shows that the IPO achieved a subscription status of 51%. Notably, the employee portion witnessed robust demand, being oversubscribed by 6.84 times. The retail and non-institutional investors (NII) segments are yet to reach full subscription, with retail investors accounting for 86% and the NII portion at 24% as of 11:20 am.

On the first day of subscription, the IPO garnered a subscription of 27%, indicating a gradual increase in investor interest as the offering progresses.

The IPO, with a price band set between Rs 280 to Rs 295 per share, offers investors an opportunity to bid for up to 50 shares. Popular Vehicles and Services, a comprehensive vehicle services provider, encompasses various aspects of the automotive lifecycle, including sales, maintenance, spare parts, driving instruction, and insurance and financial products.

Comparatively, Popular Vehicles' listed peer, Landmark Cars Limited, currently holds a Price-to-Earnings (P/E) ratio of 34.84, as per the Red Herring Prospectus (RHP).

Financially, Popular Vehicles & Services Limited exhibited notable growth between March 2022 and March 2023, with a 90.31% increase in Profit After Tax (PAT) and a 40.42% surge in revenue.

The IPO comprises a fresh issue of Rs 250 crore and an offer-for-sale (OFS) of up to 11,917,075 equity shares by the selling shareholder, BanyanTree Growth Capital II, LLC. The proceeds from the IPO will be utilized for general corporate purposes and the repayment/prepayment of certain loans taken by the company and its subsidiaries.

The book-running lead managers for the IPO are ICICI Securities Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, while Link Intime India Private Ltd serves as the registrar.

In the grey market, Popular Vehicles IPO's Grey Market Premium (GMP) stands at Rs 0, indicating that shares are trading at their issue price of Rs 295. Analysts anticipate a downward trend in GMP, with the lowest at Rs 0 and the highest at Rs 33, based on recent market activities.

The Grey Market Premium serves as an indicator of investor sentiment, reflecting their willingness to pay above the issue price for shares. With the closing of the IPO today, stakeholders eagerly await the final subscription figures and anticipate the future performance of Popular Vehicles and Services in the market.