Popular Vehicles and Services shares make dull D-St debut; stock lists at 2% discount

Shares of Popular Vehicles and Services Ltd (PVSL) made a muted listing at Dalal Street on Tuesday as the auto dealership was listed at discount of 1.97 per cent at Rs 289.20 on NSE, against an issue price of Rs 295 apiece. Similarly, the stock kicked-off its maiden trading session at Rs 292 on BSE, a discount of 1.02 per cent over its issue price.

Listing of Popular Vehicles and Services has been on the expected lines. Ahead of its listing, shares of Popular Vehicles were commanding no premium in the grey market, suggesting a muted or at par listing for the company. However, its premium in the unofficial market stood at Rs 25-30 when the issue opened for bidding.

The Kerala-based Popular Vehicles & Services sold its shares in the price band of Rs 280-295 apiece. Investors could bid for a minimum of 50 shares and its multiples thereafter. It raised a total of Rs 601.66 crore via IPO, which included a sale of fresh equity shares worth Rs 250, while an offer-for-sale (OFS) of up to 1,19,17,075 equity shares.

The IPO was overall subscribed only 1.23 times, receiving a dull response and just sailing through in the last few hours of bidding. The quota for qualified institutional bidders (QIBs) was booked 1.97 times. The portion reserved for retail investors and employees saw bidding for 1.05 times and 7.59 times, respectively. The quota for non-institutional investors was subscribed just 66 per cent.

Popular Vehicles and Services, Incorporated in 1983, is engaged in the business of automobile dealerships in India. Popular Vehicles provides complete services throughout the life cycle of vehicle ownership, including sales of new and preowned vehicles, servicing, spare parts distribution, driving schools, and third-party financial and insurance product sales.
 

Nuvama Wealth Management, Centrum Capital and ICICI Securities are the book running lead managers of the Popular Vehicles & Services IPO, while Link Intime India is the registrar for the issue.