India’s Largest Auto Dealer Popular Plans $ 100 Million List, Auto News, ET Auto

These funds were used to acquire small cash-strapped dealers in India and to expand the repair and service business of Popular, Naveen Philip, a shareholder and founding family member of Popular.

Popular Vehicles & Services, India’s largest car dealership, is forecasting a $ 100 million listing next year, a source with direct knowledge of the matter said.

Documents filed in August with the Indian markets regulator requesting approval of its listing show the dealer 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. .

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, which sells every second car in India. Popular also sells Tata Motors’ luxury brand Jaguar Land Rover, Tata trucks and Honda Motor cars.

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 more car ownership 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.

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“Electric vehicles are the topic of the year and investor interest is huge,” one of the sources said.

With expanding prospects for CarDekho, in 2013 he first raised funds at a valuation of $ 50 million (today he has commission income of Rs 1,000 crore). In 2015, it acquired Zigwheels.com and Gaadi.com thus opening its entry into the used car market.

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