Popular Vehicles & Services Limited IPO

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They stand as a premier diversified automobile dealership in India, with their prominence underscored by a CRISIL Report. Their fully integrated business model spans the entire spectrum of vehicle ownership lifecycle, encompassing the sale of new vehicles, vehicle servicing and repairs, distribution of spare parts and accessories, management of pre-owned vehicle transactions, operation of driving schools, and facilitation of third-party financial and insurance products.

Their operations are strategically divided into three primary segments:

– Passenger Vehicles including Luxury Vehicles.
– Commercial Vehicles.
– Electric Two-Wheeler and Three-Wheeler Vehicles.

They maintain partnerships with several Original Equipment Manufacturers (OEMs) across various vehicle categories. For passenger vehicles, they collaborate with Maruti Suzuki India Limited (both Arena and Nexa), Honda Cars India Limited through VMPL, and Jaguar Land Rover India Limited through PAWL. In the commercial vehicles domain, they have ties with Tata Motors Limited (Commercial) through PMMIL and Daimler India Commercial Vehicles Private Limited (BharatBenz) through PMPL. Additionally, they deal in electric vehicles with Piaggio Vehicles Private Limited (including commercial and cargo vehicles) through KGPL and Ather Energy Private Limited through KCPL.

Their dealership agreements, whether exclusive or non-exclusive, are structured with specified territorial operations and are subject to renewal and termination clauses that ensure operational flexibility and adherence to OEM partnerships’ terms.

Revenue Streams and Geographic Presence

The revenue generated from each key segment demonstrates a significant portion of their operations, with passenger vehicles (including luxury vehicles) forming the largest share. This diversification not only strengthens their financial standing but also mitigates risks associated with market volatility in specific segments.

Their extensive network comprises 61 showrooms, 133 sales outlets and booking offices, 32 pre-owned vehicle showrooms and outlets, 139 authorized service centers, 43 retail outlets, and 24 warehouses. These facilities span across 14 districts in Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu, and 9 districts in Maharashtra, showcasing their robust presence across significant markets in India.

Strategic acquisitions and expansions, such as the acquisition of 11 service centers and 2 showrooms from a Maruti Suzuki dealer in Kerala and further expansion in Tamil Nadu and Maharashtra, underscore their commitment to enhancing their service and repair offerings. This strategic growth has significantly increased their revenue from servicing passenger and commercial vehicles. In Fiscal 2023, they achieved the ‘All India Highest in the Bodyshop Load’ ranking for Maruti Suzuki, further solidifying their market leadership.

The escalating sales of electric two-wheeler and three-wheeler vehicles, from 252 units in Fiscal 2022 to 3,381 units in Fiscal 2023, highlight our adaptability to evolving market demands and their contribution towards sustainable mobility solutions.

Their diversified operations, strategic expansions, and strong OEM partnerships position them as a leading entity in India’s dynamic and competitive automobile dealership landscape.

Objects of the Popular Vehicles & Services Limited IPO:

The company proposes to utilise the Net Proceeds towards funding the following objects: i. Repayment and/or pre-payment, in full or part, of certain borrowings, availed by the company and certain of the subsidiaries, namely, VMPL, PAWL, PMMIL, KGPL, KCPL and PMPL and; ii. General corporate purposes. Total Number of shares issues :- i. Fresh Issue is 8,474,576 shares, ii. Offer for sale is 11,917,075 shares.

Popular Vehicles & Services Limited IPO Details:

Open Date: Mar 12 2024
Close Date: Mar 14 2024
Total Shares: 20,391,651
Face Value: ₹ 2 Per Equity Share
Issue Size: 601.55 Cr.
Lot Size: 50 Shares
Issue Price: ₹ 280 - 295 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 19 2024

Promoters And Management:

Jacob Kurian is the Chairman and Non-Executive Independent Director of the Company. He holds a bachelor’s degree in electrical engineering from the University of Madras. He also holds a post-graduate diploma in business management from Xavier Labour Relations Institute, Jamshedpur. Prior to joining the Company, he was the country manager at TATA Unisys Limited and also worked at TATA Services Limited and Titan Industries Limited. John K. Paul is the Whole-time Director of the Company. He holds a bachelor’s degree in mechanical engineering from the University of Calicut. He is responsible for the Maruti Suzuki dealership operations of the group. He has more than 49 years of experience in automobile industry. He is currently the president of Kerala Automobiles Dealership Association and currently a member of Federation of Automobile Dealers Association’s Executive Committee and Governing Council. He is also a trustee of the Lawrence School Lovedale Alumni Foundation. Francis K. Paul is a Whole-time Director of the Company. He holds a bachelor’s degree in mechanical engineering from the University of Calicut. He is responsible for corporate social responsibility activities and other policy matters of the Company. He has more than 49 years of experience in the automobile sector.

Financials of Popular Vehicles & Services Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 125.44 125.44 125.44
Reserves 2,335 2,673 3,305
Borrowings 3,530 3,719 5,050
Trade Payables 663 868 908
Other Liabilities 4,535 5,247 5,650
Total Liabilities 8,729 9,834 11,607
Net Block 2,244 2,464 2,935
Capital Work in Progress 173 123 77
Investments 49 44 58
Other Assets 3,057 3,930 4,611
Total NC Assets 5,524 6,562 7,682
Receivables 1,607 1,766 2,238
Inventory 3,117 3,620 4,349
Cash & Bank 594 204 282
Other Assets 347 481 487
Face value 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 28,935 34,659 48,750
Purchases of Stock In Trade 24,574 29,671 41,752
Change in Inventory -244 -504 -326
Employee Cost 2,035 2,420 3,082
Other Expenses 1,079 1,468 2,070
Other Income 257 183 176
Depreciation 725 693 794
EBITDA 1,749 1,787 2,348
EBITDA Margin 6.04% 5.15% 4.82%
Interest 551 609 705
Profit before tax 473 485 849
Tax 148 149 208
Net profit 325 337 641
NPM (%) 1.11% 0.97% 1.31%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 1,552 1,653 2,268
Receivable -543 -168 -394
Inventory -244 -504 -326
Loans And Advances 605 -236 -30
Other WC Items -423 103 -176
Working Capital Changes -605 -805 -926
Direct Taxes 5 -151 -253
Net Cash Inflow from Operating Activity 952 697 1,089
Cash from Investing Activity
Fixed assets purchased -273 -479 -540
Fixed assets sold 130 39 37
Investments purchased 0 -4 0
Investment sold 82 0 1
Investment in subsidiaries 0 0 -286
Investment in group cos -21 -2 -27
Other investing items 16 32 19
Net cash inflow from investing activities -67 -414 -796
Cash from Financing Activity
Proceeds from borrowings 639 439 1,115
Repayment of borrowings -599 -250 -360
Intrest paid fin -278 -287 -332
Other financing items -468 -555 -661
Net Cash Flow 178 -369 54

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Popular Vehicles and Services Limited 4875 64 8.99 32.8 295 2,100
Landmark Cars Limited 3382 85 21.32 40.7 719 2,960
* All the data is as per FY23.

Lead Manager of Popular Vehicles & Services Limited IPO:

  1. Centrum Capital Limited 
  2. ICICI Securities Limited
  3. Nuvama Wealth Management Limited

Registrar of Popular Vehicles & Services Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Popular Vehicles & Services Limited Kuttukaran Centre Mamangalam, Cochin Ernakulam 682 025 Phone: +91 484 2341 134 Email: cs@popularv.com Website: https://www.popularmaruti.com/

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