The Rs 601.55-crore IPO of Popular Vehicles and Services was subscribed 27 percent on March 12, the first day of bidding. Investors sent in bids for 39.27 lakh equity shares against the offer size of 1.44 crore shares.
Retail investors bought 0.47 times the portion set aside for them and non-institutional investors picked 0.11 times their allotted quota, while qualified institutional buyers (QIBs) bought 4,100 equity shares against their reserved portion of 39.7 lakh shares.
Employees bid 3.83 times the portion reserved for them. Shares worth Rs 1 crore have been reserved for the staff and will be allotted to them at a discount of Rs 28 a share to the final price.
The price band for the initial public offering, which closes on March 14, has been fixed at Rs 280-295 a share.
The IPO is a mix of fresh issue of equity shares worth Rs 250 crore and an offer-for-sale (OFS) of 1.19 crore shares worth Rs 351.55 crore by private equity fund BanyanTree Growth Capital II LLC.
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The Kerala-based automobile dealer, which competes with Landmark Cars, mobilised Rs 180.17 crore through its anchor book. Marquee investors including HDFC Mutual Fund, Quant Mutual Fund, HSBC Global Investment Funds, Pinebridge Global Funds, Citigroup Global Markets Mauritius, and SBI General Insurance Company participated in the anchor book.
Most of the fresh issue proceeds — Rs 192 crore — will be used to repay debt and the remaining will be set aside for general corporate purposes.
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Popular Vehicles and Services operates dealerships for Maruti Suzuki India, Honda Cars India, Jaguar Land Rover India, Tata Motors, Daimler India Commercial Vehicles, Piaggio Vehicles, and Ather Energy.
Its FY23 profit came in at Rs 64.07 crore, which was 90.3 percent higher from the previous year. Revenue grew 40.65 percent to Rs 4,875 crore and EBITDA rose 35.5 percent to Rs 217.2 crore. The EBITDA margin, however, dropped 4.45 percent from 4.6 percent in previous year.
Net profit for six months period ended September FY24 was at Rs 40 crore on a revenue of Rs 2,835 crore.
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