Popular Vehicles & Services Limited

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Popular Vehicles & Services Limited–IPO DETAILS 

Company Overview 

Established in 1983, Popular Vehicles and Services Limited specializes in automobile dealerships within India. Popular Vehicles offers comprehensive services spanning the entire vehicle ownership lifecycle, encompassing new and preowned vehicle sales, maintenance, spare parts distribution, driving schools, and sales of third-party financial and insurance products. 

 The company's operations are segmented into three categories: 

•  Passenger vehicles, including luxury vehicles, 

• Commercial vehicles, and 

• Electric two-wheeler and three-wheeler vehicles. 

Presently, Popular Vehicles operates through an extensive network comprising 59 showrooms, 126 sales outlets and booking offices, 31 pre-owned vehicle showrooms and outlets, 134 authorized service centres, 40 retail outlets, and 24 warehouses. These facilities are spread across 14 districts in Kerala, eight districts in Karnataka, 12 districts in Tamil Nadu, and seven districts in Maharashtra. In addition to showrooms, the sales outlets and booking offices facilitate sales, while the retail outlets handle the sale and distribution of spare parts and accessories. In FY 2023, the company serviced a total of 791,360 vehicles, comprising 5,212 luxury vehicles, 163,013 commercial vehicles, 1,918 electric two-wheeler vehicles, and 857 electric three-wheeler vehicles. These services were provided through 130 authorized service centres located across the company's dealerships. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. The repayment or prepayment, whether in full or in part, of certain borrowings obtained by the company and some of its subsidiaries, namely, VMPL, PAWL, PMMIL, KGPL, KCPL, and PMPL. 

2. Utilization for general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. Extensive expertise within the automobile industry coupled with robust partnerships with leading OEMs. 

2. Effective market penetration backed by innovative marketing strategies. 

3. A comprehensive business model guaranteeing stability and enhanced margins. 

4. Proven ability to identify and capitalize on both organic and inorganic growth opportunities. 

5. Consistent track record of profitable financial performance and continuous expansion. 

Cons 

1. The company's business prospects could be significantly affected by non-renewal, termination, or any significant adverse changes to its dealership agreements with OEMs.  

2. Additionally, the pending approval from the Central Government for appointing John K. Paul as a Whole-time Director is an ongoing concern.  

3. Furthermore, heightened competition among automotive dealerships, both online and offline, is exerting pressure on the company's profit margins stemming from vehicle sales and related operations. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”