Popular Vehicles And Services IPO Subscribed 1.23 Times On Final Day

Popular Vehicles and Services Ltd.'s initial public offer saw a tepid response on the first day on Tuesday with investors bidding only 27% of the total issue and 45% on day 2.

The Rs 601.6-crore IPO is a combination of a fresh issue and an offer-for-sale. The company has raised Rs 180 crore from anchor investors ahead of its issue.

• Issue open: March 12.

• Issue close: March 14.

• Issue price: Rs 280–295 apiece.

• Fresh issue: Rs 250 crore.

• Offer for sale: Rs 351.6 crore.

• Total issue size: Rs 601.6 crore.

• Market value at upper end of price band: Rs 2,100 crore.

The company is into diversified automobile dealerships in India. It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.

The company's automobile dealership business has three key segments —passenger vehicles (including luxury vehicles), commercial vehicles and electric two-wheeler and three-wheeler vehicles.

Repayment and/or pre-payment, in full or part, of certain borrowings, availed by the company and certain of its subsidiaries, which is Rs 192 crore.

The IPO has been subscribed 1.23 times as of 7:00 p.m. on Thursday.

• Institutional investors: 1.97 times.

• Non-institutional investors: 0.66 times or 66%.

• Retail investors: 1.05 times.

• Employee reserved: 7.59 times.