Popular Vehicles IPO GMP: A Deep Dive into Potential & Performance

In the ever-changing landscape of financial markets, the initiation of an Initial Public Offering (IPO) often creates a mix of anticipation and scrutiny. The recent debut of Popular Vehicles & Services’ IPO was no different, with investors observing a gradual uptake on Day 1. Let’s delve into the details and explore whether this IPO is a hidden gem or just a slow burner.

Popular Vehicles IPO GMP Details:

The IPO curtain lifted to reveal a split in investor enthusiasm. While the employee portion witnessed an impressive over-subscription of 3.83 times, the collective response from other investor categories was more measured. As per data from the Bombay Stock Exchange (BSE), approximately 27% of the IPO has been subscribed so far.

Investor Breakdown:

• Retail Investors: Leading the charge, retail investors have subscribed to a commendable 47% of their allocated portion, reflecting keen interest in Popular Vehicles & Services’ future prospects.
• Non-Institutional Investors: In contrast, non-institutional investors have adopted a cautious approach, with only 11% of their portion subscribed. This caution may stem from market sentiment and perceived company risks.
• Qualified Institutional Buyers (QIBs): Surprisingly, qualified institutional buyers have yet to make their move, with none of their portion subscribed. This cautious stance raises questions about the confidence level among institutional players.

Investment Essentials:

• Share Allocation:
  • Qualified Institutional Buyers: 50%
  • Non-Institutional Investors: 15%
  • Retail Investors: 35%
• Lot Size: Shares are available in lots of 50, making the investment accessible to a diverse range of investors.
• Price Range: The per-share price fluctuates between ₹280 to ₹295, providing flexibility for investors with varying budget considerations.

Exploring Popular Vehicles IPO GMP

Popular Vehicles & Services is deeply entrenched in the automotive realm, with operations spanning new and used car sales, driving schools, and comprehensive repair services.

Financial Performance:

Beyond the IPO fervor, the company’s financial health is a crucial aspect for potential investors. Popular Vehicles & Services has displayed robust growth, with a staggering 90.31% increase in profit after tax and a noteworthy 40.42% uptick in revenue from March 2022 to March 2023.

Investor Interest:

Interest in the IPO is palpable, with bids placed for 39,27,750 shares. However, this figure falls short of the 1,44,15,110 shares on offer. Prospective investors have until March 14 to weigh their decisions.

Conclusion:

Popular Vehicles & Services IPO has started with a measured pace, leaving investors to contemplate the potential returns and associated risks. Seasoned investors and newcomers alike have a few days to make their choices before the deadline. Will the IPO be a slow burn with enduring gains or a swift rise to success? The choice is yours. Good luck!