India’s Largest Auto Dealer Popular Plans $ 100 Million List – Source


Vehicles line up at a traffic light on a foggy morning in New Delhi, India on October 16, 2020. REUTERS / Anushree Fadnavis

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NEW DELHI, Dec. 1 (Reuters) – Popular Vehicles & Services, India’s largest car dealership, is forecasting a $ 100 million listing next year, a source familiar with the matter said.

Documents filed in August with the Indian markets regulator requesting approval of its listing show that the concessionaire plans to raise $ 20 million by issuing new shares.

The funds were used to acquire small cash-strapped dealers in India and to expand Popular’s repair and service business, Popular shareholder and founding family member Naveen Philip told Reuters. .

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The remainder of the IPO will consist of cashing in from Indian private equity fund BanyanTree Growth Capital by selling its entire 34% stake.

Popular is expected to be the first Indian car dealership to feature in a highly fragmented market. It is one of the biggest dealers of Maruti Suzuki (MRTI.NS), which sells every second car in India. Popular also sells Tata Motors’ luxury brand Jaguar Land Rover (TAMO.NS), Tata trucks and Honda Motor cars (7267.T).

The pandemic led to two years of decline that pushed demand for cars in the world’s fifth-largest auto market to its lowest level in six years. But Philip said Popular expects to benefit from a shift to larger motorization and a move away from shared transport.

As schools and offices reopen, demand for additional vehicles grows, while at the same time, uncertainty over another wave of infections and job insecurity push people to keep their older cars. Longer.

“This trend will be there for the next 2-3 years until COVID gets completely out of people’s minds,” he said, adding that longer ownership cycles would boost service and repair business. at the company’s high margin.

Philip declined to comment on the size of the IPO. The source with direct knowledge of the case was not allowed to comment on the case and declined to be identified.

Indian company Droom Technology, a platform for buying and selling new and used vehicles, also plans a public listing of $ 400 million, while used car platform Cars24 has raised 450 million dollars in September as part of a deal that nearly doubled its valuation. Read more

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Report by Aditi Shah; Editing by Edwina Gibbs

Our standards: Thomson Reuters Trust Principles.

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