Popular Vehicles and Services files IPO papers with Sebi

NEW DELHI: Popular Vehicles and Services Ltd, which is engaged in automotive dealership, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share sale.

The initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 150 crore and an offer for sale (OFS) of 4,266,666 equity shares by Banyantree Growth Capital II, LLC, according to the draft red herring prospectus (DRHP) filed with Sebi on Wednesday.

Proceeds of the fresh issue will be used for payment of certain borrowings, including working capital loans, availed by the company and its subsidiaries and for general corporate purpose.

The Kerala-based company is a leading diversified automotive dealership in the country with presence across the automotive retail value chain, including sale of new passenger and commercial vehicles, services and repairs, spare parts distribution, sale of pre-owned passenger vehicles and facilitation of sale of third-party financial and insurance products.

It operates passenger vehicle dealerships of Maruti Suzuki, Honda and JLR and the commercial vehicle dealership of Tata Motors.

Axis Capital, Centrum Capital and DAM Capital Advisors (formerly IDFC Securities) have been appointed as merchant bankers to advise the company on the IPO.

The equity shares of the company will be listed on the BSE and NSE.