Popular Vehicles IPO Opens Today: Should You Apply or Not?

The price band for the Popular Vehicles IPO is set at ₹280 to ₹295 per equity share, and the subscription period is open from March 12th, 2024, to March 14th, 2024.

Popular Vehicles IPO

Anchor: A popular vehicle IPO opens today. You must have questions, like whether you should subscribe to it or not. We have with us, a stock market expert, Sanjay Shekhawat, who will help you through this. Sanjay, tell our viewers about the popular vehicle’s IPO.

Popular Vehicles IPO details

Sanjay: Thank you for having me. Popular Vehicles & Services Limited has launched its IPO today. With a price range of ₹280 to ₹295 per equity share, it is open for subscription from March 12th, 2024, to March 14th, 2024. With this IPO, the company aims to raise ₹601.55 crore.

Anchor: How many times has it been subscribed so far?

Sanjay: People are showing good interest in the IPO. Till 1:12 PM, the public issue has been subscribed to 0.18 times, and the retail portion has been subscribed to 0.32 times. While the NII segment has been subscribed to 0.05 times, the employees’ segment was fully subscribed, receiving bids of 2.76 times. This is just a few hours’ report after its opening.

Anchor: Can you please tell our viewers more about the popular Vehicles & Services Limited?

Sanjay: Of course, popular vehicles are operated in the automobile dealership sector, with a focus on passenger vehicles, commercial vehicles, and electric two-wheeler and three-wheeler vehicles. The company has a huge network of showrooms, sales outlets, service centres, and warehouses across India.

Anchor: And what about its allotment date and listing?

Sanjay: Market observers say that the popular vehicle IPO is available at ₹26 in the grey market. The allotment for the IPO is expected to be finalized on March 15th, 2024, on Friday this week. The listing is expected on March 19th, 2024.

Popular Vehicles’ Financial Performance

Anchor: Now let’s talk about the company’s financial performance.

Sanjay: yes, The company’s revenue has been growing at a compound annual growth rate (CAGR) of 29.8%, earnings before interest, taxes, depreciation, and amortization (EBITDA) of 20.7%, and profit after tax (PAT) of 40.6% during the FY2021-23 period. On the upper price band, the company’s stock is priced at 28.9 times its earnings from FY2023. Some analysts believe this valuation is fair.

Should You Apply for Popular Vehicles IPO?

Anchor: So, let’s come to the most important question: Should investors subscribe to the popular vehicle IPO?

Sanjay: See, the company has strong financial performance and market options. And analyst firms are showing a green flag for the IPO. Ventura Securities, a stock broking house, has also given a “subscribe” tag; BP Equities recommends a subscribe rating for the IPO. Canara Bank Securities and Sushil Finance have also given positive recommendations, with Canara Bank Securities advising to subscribe and Sushil Finance suggesting a may apply’ tag to the IPO.

Anchor: Thank you, Sanjay, for joining us. We have presented the facts; now the decision is yours.

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FAQ

1. What is the price band for the Popular Vehicles IPO, and when is the subscription period?

The price band for the Popular Vehicles IPO is set at ₹280 to ₹295 per equity share, and the subscription period is open from March 12th, 2024, to March 14th, 2024.

2. What is the expected listing date for Popular Vehicles IPO?

The expected listing date for Popular Vehicles IPO is March 19, 2024, on both the BSE and NSE stock exchanges.

3. What are analysts saying about the Popular Vehicles IPO?

Analysts are generally positive about Popular Vehicles IPO, citing the company’s strong financial performance and market position. Ventura Securities, BP Equities, Canara Bank Securities, and Sushil Finance have all given positive recommendations, with Canara Bank Securities advising to subscribe and Sushil Finance suggesting a ‘may apply’ tag to the IPO.

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