Popular Vehicles and Services Ltd

About the Company:

Popular Vehicles and Services Ltd (Kuttukaran Group) is a diversified automobile dealership in India in terms of revenue as of Fiscal 2023, having a fully integrated business model.

The Kuttukaran Group entered the automobile industry in 1953 with the commencement of the automobile spare parts and accessories business and have since forayed into the automobile dealership business by partnering with various leading OEMs.

Company had set up the first Maruti Suzuki showroom in Trivandrum, Kerala in 1984 under the “Popular” brand and have since then strategically expanded the dealership network across the value-chain, from economy to premium to luxury vehicles,

Company 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.

With diversified automobile dealerships and a fully integrated business model, the Kuttukaran Group (the group of entities and business operated by Promoters and their immediate relatives) has over 70 years of experience in the automobile industry.

Company’s Dealer Network:

Company operated through a network of 61 showrooms, 133 sales outlets and booking offices, 32 pre-owned vehicle showrooms and outlets, 139 authorised service centres, 43 retail outlets, and 24 warehouses located across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu and 9 districts in Maharashtra.

Company’s Automobile dealership business is divided into three key segments, namely:

Passenger vehicles including luxury vehicle.
Commercial vehicles.
Electric two-wheeler and three-wheeler vehicles.

Passenger Vehicles Segment:

Company operate passenger vehicle dealerships of Maruti Suzuki, Honda and JLR.
Company’s passenger vehicle offerings cover a complete spectrum of vehicles ranging from economy to premium and luxury vehicles including electric vehicles.
During the six months period ended September 30, 2023, company sold an aggregate of 16,476 passenger vehicles across dealerships.
Company’s Maruti Suzuki dealerships are operated under the ‘Popular’ brand and cater to economy and premium passenger vehicles under the brands, ‘Arena’ and ‘Nexa’.
Company’s Maruti Suzuki dealerships are operated through 20 showrooms, 81 sales outlets and booking offices, 29 pre-owned vehicle showrooms and outlets and 74 authorised service centres located across Kerala and Tamil Nadu.
In Fiscal 2023, Company was recognised as the seventh largest selling Maruti Suzuki dealership in India under the Arena network (by volume), and the ninth largest selling Maruti Suzuki dealership in India under the Nexa network (by volume).

Commercial Vehicles Segment:

Company operates commercial vehicle dealerships of Tata Motors (Commercial) and BharatBenz.
Company’s Tata Motors (Commercial) dealership was operated through 13 showrooms, 32 sales outlets and booking offices and 27 authorised service centres across 14 districts of Kerala and 5 districts of Tamil Nadu.
Company was the fourth largest commercial vehicle dealership of Tata Motors (Commercial) in terms of sales volumes in Fiscal 2023.
As of September 30, 2023, company contributed to the sale of 76.73% and 48.02% of the total Tata Motors (Commercial) vehicles sold in Kerala and Tamil Nadu, respectively.
Company’s BharatBenz dealership is operated under the ‘Prabal Trucking’ brand and caters to a range of commercial vehicles.
As of December 31, 2023, Company’s BharatBenz dealership was operated through 8 showrooms, 12 sales outlets and booking offices and 17 authorised service centres, across 9 districts in Maharashtra and 8 districts in Tamil Nadu.

Electric Two-Wheeler and Three-Wheeler Vehicles Segment:

Company entered the electric two-wheeler and three-wheeler vehicles segment in 2021 and operates electric two-wheeler and three-wheeler vehicle dealerships of Ather and Piaggio, respectively.
Company’s Piaggio dealership is operated under the ‘Ecomarq’ brand and caters to a wide range of electric three-wheeler vehicles.
Company’s Piaggio dealership was operated through 7 showrooms and 7 authorised service centres across 6 districts in Kerala as of December 31, 2023.
As of September 25, 2023, KGPL was recognised as the biggest dealer of Piaggio electric three-wheeler vehicles in Kerala and the fifth largest dealer at an all-India level.
Company’s Ather dealership is operated under the ‘Ecomarq’ brand and caters to a wide range of electric two-wheeler vehicles.
Company’s Ather dealership was operated through 3 showrooms, 5 sales outlets and booking offices, and 3 authorised service centres across 2 districts in Kerala and 1 district in Tamil Nadu as of December 31, 2023.

Driving Schools Segment:

Company had set up first driving school in Ernakulam in the year 2006. Over the years, company expanded the network of driving schools by setting up a total of 7 driving schools across Kerala.

Percentage wise Revenue From Various Segments: (in %)

Company operates dealerships for the following OEMs:

Maruti Suzuki India Ltd
Honda Cars India Ltd
Jaguar Land Rover India Ltd
Commercial vehicle dealerships of Tata Motors Ltd.
Daimler India Commercial Vehicles Pvt Ltd (“BharatBenz”)
Electric three-wheeler vehicle dealership of Piaggio Vehicles Pvt Ltd
Electric two-wheeler vehicle dealership of Ather Energy Pvt Ltd

Brand Name used by the Company for various Dealership:

Maruti Suzuki : Popular Maruti.
Honda: Vision Honda.
JLR: ‘Marqland’ brand.
Tata Motors (Commercial): ‘Popular Mega Motors’ brand.
BharatBenz: ‘Prabal Trucking’ brand.
Piaggio: ‘Ecomarq’ brand.
Ather: ‘Ecomarq’ brand.

Key Parameters for the Company:

Company’s other Operating Income:

Management Team:

Mr. Jacob Kurian (Designation: Chairman and Non-Executive Independent Director)
Mr. Naveen Philip (Designation: Managing Director)

Objectives of the Issue:

Offer For Sale: (Rs. 351.5 cr)

Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.

Fresh Issue: (Rs.250 cr)

Repayment and/or pre-payment, in full or part, of certain borrowings, availed by our Company and certain of our Subsidiaries, namely, PAWL, PMMIL, KGPL, KCPL and PMPL.
General corporate purposes.

Fund Utilization:

Particulars	Amount (Rs. in Crores)
Repayment and/or pre-payment, in full or part, of certain borrowings, availed by our Company and certain of our Subsidiaries, namely, PAWL, PMMIL, KGPL, KCPL and PMPL	192 cr

Positives for the Company:

Expansion of network and diversification of product portfolio.

Company has an early-mover advantage in catering to the semi-urban and rural areas through significant network of sales outlets and booking offices.
Company intends to continue to increase our penetration in these areas by the addition of newer showrooms and sales outlets and booking offices.
Company intends to expand our Maruti Suzuki business in Karnataka starting with Bangalore.

Company plans to grow through strategic acquisitions.

Company generally seek to acquire dealerships with high-growth automobile brands which may or may not be part of our existing portfolio in highly concentrated or growing demographic areas that will benefit from our management expertise, manufacturer relations and scale of operations, as well as smaller, single location dealerships that can be effectively integrated into our existing operations.
Company has made strategic acquisitions, considering the consequent geographic and dealership addition to our business operations and continue to look for opportunities for inorganic growth through strategic acquisitions and undertake the same for continued growth.
Company has in the past achieved inorganic growth through strategic acquisitions. For instance, company acquired 11 service centres and 2 showrooms from a dealer for Maruti Suzuki in Kerala in 2021.
Additionally, company acquired 8 showrooms, 17 service centres and 3 sales outlets and booking offices for BharatBenz in Tamil Nadu and Maharashtra.

Financials of the Company:

(in Crores)	FY 21	FY 22	FY 23	Upto 30th Sept 23
Revenue	2919.2	3484.2	4892.6	2848.2
Net Profit	32.4	33.6	64.0	40.0

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
Popular Vehicles and Services Ltd	2	10.22	28.86	18.68%	54.69
Landmark Cars Ltd	5	21.74	34.84	18.04%	118.55

IPO Details:

Details	Info
Issue Opens on	12th March 2024
Issue Closes on	14th March 2024
Issue Price	Rs.280 -295
Face Value	Rs.2
Retail Category Allocation	35 %
Minimum Lot	50 Shares
Minimum Investment	Rs.14,750
Issue Constitutes	28.64 %
Issue Size	Rs. 601.55 cr ($ 73 million )
Market Cap	Rs. 2100 cr ($ 253 million )
Listing at	NSE & BSE
Equity Shares Offered (Fresh)	84,74,577 (Rs.250 cr)
Equity Shares Offered (OFS)	1,19,17,075 (Rs.351.5 cr)
Total Equity Shares Offered (Fresh + OFS)	2,03,91,652 (Rs.601.55 cr)
Equity Shares Prior to the Issue	6,27,21,445
Equity Shares after the Issue	7,11,96,022

Also Read : List of Upcoming IPO’s in India.
Also Read: List of Upcoming SME IPO’s in India.

Important Dates:

Finalization of Basis of Allotment	on or Before 15th March 2024
Initiation of Refunds	on or Before 18th March 2024
Credit of Equity Shares:	on or Before 18th March 2024
Listing Date:	on or Before 19th March 2024

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
10.22	28.86	18.68%	54.69

Company Contact Info:
Popular Vehicles and Services Limited Kuttukaran Centre Mamangalam, Cochin Ernakulam 682 025, Kerala, India. Tel: +91 484 2341 134 Email: cs@popularv.com Website: www.popularmaruti.com

Registrar to the Issue:
Link Intime India Private Limited C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg Vikhroli (West), Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: popularvehicles.ipo@linkintime.co.in Website: www.linkintime.co.in