Popular Vehicles and Services IPO Sees Gradual Response on Day 1, GMP at +50

Popular Vehicles and Services IPO had a sluggish start on Day 1, with the issue showing a gradual response from investors. The IPO’s employee portion was fully subscribed, while retail and non-institutional investors showed slower participation. Data indicated an overall subscription rate of 27%.

The retail investors’ portion received a subscription rate of 47%, NII portion saw an 11% subscription, with the QIB portion still awaiting interest. The offer reserved less than 50% for QIBs, a minimum of 15% for NIIs, and at least 35% for retail investors. The employee portion was oversubscribed nearly 4 times.

The Popular Vehicles and Services IPO is open for subscription till March 14, with a price range of ₹280 to ₹295 per equity share. The figure includes a lot size of 50 equity shares and multiples of 50 thereafter. The company reserved ₹1 crore worth of shares for employees with a discount of ₹28 per share.

Anchor investors brought in ₹180.17 crore on March 11 as the IPO’s book launched. The company stretches its offering to handling new car sales, maintenance, repairs, car accessories, driving schools, used car sales, and coordinating insurance and financial products.

Popular Vehicles & Services’ financial report shows a 90.31% increase in PAT and a 40.42% growth in revenue between March 31, 2022, and March 31, 2023. Based on the grey market, the IPO’s GMP stands at +50, indicating a share price trading premium. The estimated listing price may hit ₹271 from the ₹221 IPO price.

The IPO comprises a fresh issue of ₹250 crore and an OFS of 11,917,075 equity shares by selling shareholder BanyanTree Growth Capital II, LLC. The funds aim to repay loans and general corporate purposes. The IPO has LMs in Limited, Nuvama Wealth Management Limited, and Centrum Capital Limited, with Link Intime India Private Ltd as registrar.