Popular Vehicles & Services, an esteemed car dealership chain operating across Kerala, Tamil Nadu, Karnataka, and Maharashtra, is gearing up for an IPO to raise funds.

The IPO aims to secure capital for loan repayment, with a fresh issue of shares amounting to 250 crore. Notably, private equity investor Ba-Nyan Tree will divest its shares in the offering. Following the IPO, the promoter stake will reduce to 61%, while Banyan Tree’s holding will drop to 10%.

With a rich legacy since 1984, Popular Vehicles & Services boasts a robust network of showrooms catering to both passenger cars and commercial vehicles. Representing renowned brands like Maruti Suzuki and Tata Motors, the company commands a significant market share in the southern region. Leveraging its strong last-mile network, it has demonstrated commendable profitability, particularly in the services segment, which contributes significantly to its operating profit.

While the IPO presents an opportunity for investors, it’s imperative to note potential risks, including dependency on key vehicle manufacturers and the non-long-term nature of dealership contracts. Nevertheless, with its proven track record and strategic positioning, Popular Vehicles & Services stands as a promising player in the automotive dealership landscape.