India’s Largest Car Dealer Popular Plans $100 Million Listing: Report

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Papers searching for approval for its itemizing with India’s markets regulator in August present the seller plans to boost $20 million by issuing new shares.


Popular is all set to become the first Indian auto dealership in the highly fragmented market.

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Popular is all set to develop into the primary Indian auto dealership within the extremely fragmented market.

Popular Vehicles & Services, India’s largest auto seller, is planning a $100 million itemizing subsequent yr, mentioned a supply with direct data of the matter.

Papers searching for approval for its itemizing with India’s markets regulator in August present the seller plans to boost $20 million by issuing new shares.

Those funds have been earmarked to amass smaller cash-strapped sellers in India and increase Popular’s restore and companies enterprise, Naveen Philippe, a shareholder and member of Popular’s founding household, instructed Reuters.

The remainder of the IPO will contain Indian personal fairness fund Banyan Tree Growth Capital promoting its total 34% stake to money out.

Popular is all set to develop into the primary Indian auto dealership within the extremely fragmented market. It is without doubt one of the largest sellers of Maruti Suzuki, promoting one out of each two automobiles in India. The well-liked Tata Motors luxurious model additionally sells Jaguar Land Rover, Tata Trucks and Honda Motor Cars.

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It is without doubt one of the largest sellers of Maruti Suzuki

The pandemic has resulted in a two-year droop that has pushed automotive demand on the earth’s fifth-largest auto market to a six-year low. But Philippe mentioned Popular expects to learn from the shift to extra automotive possession and transferring away from shared transportation.

As faculties and workplaces reopen, demand for added automobiles is rising, in addition to uncertainty about infections and one other wave of job insecurity prompting individuals to maintain older automobiles for longer.

“This trend will continue for the next 2-3 years until COVID is completely out of the mindset of the people,” he mentioned, including that the longer possession cycle will increase the corporate’s high-margin service and restore enterprise.

Philippe declined to touch upon the dimensions of the IPO. The supply with direct data of the matter was not approved to talk on the matter and declined to be recognized.

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India’s Droom Technology, a platform for getting and promoting new and used automobiles, can also be planning a $400 million public itemizing, whereas used-car platform Cars24 raised $450 million in a deal in September, Which nearly doubled its valuation.

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With inputs from NDTV

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