Popular Vehicles & Services Limited, a prominent player in the automotive industry, has initiated its much-anticipated initial public offering (IPO) on the 14th of March 2024. The subscription period for interested investors began on Tuesday and will continue until Thursday. Let’s delve into the key details and insights surrounding the Popular Vehicles IPO to help potential investors make informed decisions.
IPO Price Band and Grey Market Premium
The IPO has set a price band of ₹280 to ₹295 per equity share, reflecting the company’s valuation in the market. In the grey market, where shares are traded unofficially before listing, the grey market premium (GMP) is currently ₹26, indicating a positive sentiment among market participants.
Subscription Status
As of 12:21 PM on the first day of bidding, the overall subscription stood at 0.15 times. Notably, the retail portion saw a higher demand at 0.27 times, showcasing retail investor interest. The Non-Institutional Investor (NII) segment subscribed 0.04 times, while the employee segment was oversubscribed at 2.53 times.
IPO Details
GMP Status: Market observers report a GMP of ₹26 for Popular Vehicles IPO.
Price Band: The IPO price band is set between ₹280 and ₹295 per equity share.
Subscription Period: Investors have the opportunity to subscribe to the IPO until the 14th of March 2024.
IPO Size: To raise a total of ₹601.55 crore, the public issue consists of both new shares and an Offer for Sale (OFS). Of this, ₹351.55 crore is set aside for the OFS, and the remaining ₹250 crore comes from new shares.
Lot Size: Investors can apply in lots, with one lot comprising 50 shares of the automobile retailer company.
Allotment and Listing
The finalization of share allocation is expected on the 15th of March 2024 (Friday), offering clarity to investors. The IPO is proposed to be listed on both the BSE and NSE, with the anticipated listing date set for the 19th of March 2024.
Registrar and Analyst Recommendations
Link Intime Private Limited is the appointed official registrar for the Popular Vehicles IPO. Various financial analysts have shared their perspectives on the IPO. BP Equities, for instance, suggests a “Subscribe” rating, citing the company’s robust financial performance, with revenue, EBITDA, and PAT growing at a CAGR of 29.8%, 20.7%, and 40.6%, respectively, during FY2021-23.
Ventura Securities and Canara Bank Securities have also given a ‘subscribe’ tag, emphasizing the company’s wide-reaching network and comprehensive coverage across key regions in India.
Sushil Finance, however, takes a more cautious approach, providing a ‘may apply’ tag to the IPO.
Popular Vehicles & Services Limited’s IPO has garnered attention from investors and analysts alike. With a mix of positive market sentiment, robust financial performance, and widespread coverage, the IPO presents an opportunity for investors seeking exposure to the automotive sector. As always, investors are encouraged to conduct thorough research, consider their risk tolerance, and seek professional advice before making investment decisions
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