Popular Vehicles and Services tanks 9% after listing at nearly 2% discount
Upstox
3 min read • Updated: March 19, 2024, 11:43 AM
Summary
Popular Vehicles and Services shares listed at discount of around 2% on the NSE. The stock dropped further 9.26% to hit a low of ₹262.4 per share due to heavy selling pressure amid an overall weak broader market. According to exchange data, around 4.62 lakh shares traded on the NSE. The traded value was ₹12.6 crore.
In a tepid debut on stock exchanges, auto dealer Popular Vehicles and Services shares listed at a discount of around 2% to the issue price on NSE on Tuesday, March 19.
Shares of the Kochi-based multi-brand automotive dealer listed at ₹289.2 per share as against the issue price of ₹295 apiece on NSE, reflecting a discount of 1.96%.
The stock dived further 9.26% to hit a low of ₹262.4 per share due to heavy selling pressure amid an overall weak broader market. According to exchange data, around 4.62 lakh shares traded on the NSE. The traded value was ₹12.6 crore.
The company is listed at ₹292 per share on BSE, reflecting a discount of 1% over the issue price. Shares dropped 6% to hit a low of ₹268.95 on BSE.
Popular Vehicles and Services shares were trading down 5.77% at ₹272.50 on NSE from the listing price at 10.10 am. The stock was down 5.8% at ₹274.90 on BSE.
The Kochi-based automotive dealer hit the capital market on March 12 to raise a total of ₹601.55 crore through the initial public offering. The public issue comprised ₹250 crore worth of fresh issue and a ₹352-crore offer for sale (OFS) of 1.19 crore equity shares by existing shareholders.
Popular Vehicles and Services IPO price band was fixed at ₹280-295 per equity share for the IPO. The lot size was 50 equity shares, and the minimum investment for retail investors was ₹14,750 at the upper end. At the lower band, the minimum investment was ₹14,000.
At the close of the bidding on March 14, the IPO was subscribed 1.25 times as bids for 1,78,01,250 equity shares were received against 1,42,87,880 equity shares on offer.
The qualified institutional buyers (QIBs) category was booked 1.92 times, while the non-institutional investors’ (NIIs) portion received a lukewarm response with an overall subscription of 66%. The retail investor’s portion was booked 1.07 times, while the employee portion was subscribed 7.59 times.
Popular Vehicles and Services Ltd has proposed using the IPO proceeds to repay loans by its subsidiary companies and fund general corporate purposes.
According to the papers filed with SEBI, the multi-brand vehicle retailer seeks to utilise ₹192 crore for debt repayment or prepayment of its subsidiary firms.
The company and its subsidiaries had a total outstanding debt of ₹637.06 crore in its books as of December 31, 2023.
Popular Vehicles and Services is a leading automotive dealerships and services provider in South India. It is involved in sales of vehicles, retail sales of auto parts and accessories and pre-owned vehicles.
The company has 100 showrooms and 139 service centres in Kerala, Tamil Nadu and Karnataka. It operates the dealerships of Maruti Suzuki, Honda and Jaguar and Land Rover. It also runs dealerships of commercial vehicles of BharatBenz and Tata Motors, and electric two-wheeler and three-wheeler dealerships of Ather and Piaggio.