Popular Vehicles & Services Ltd to acquire existing authorised dealership in the state of Telangana

Popular Vehicles & Services Limited (NSE: PVSL, BSE: 544144), one of India's leading fully integrated automotive dealership players, has received in-principal approval from Maruti Suzuki India Limited (MSIL) to acquire an existing authorised dealership in the state of Telangana. This marks a new milestone with our trusted partner, MSIL, further strengthening our bonds and expanding our horizons.

In Telangana, the existing dealership operates through a network of 19 locations, comprising 5 owned and 14 leased/licensed premises, covering sales outlets, service centers, True Value outlets, driving schools, and back-end operations. The network includes 27 authorized touchpoints across Arena, Nexa, True Value, Service, Bodyshop, Commercial, Driving Schools, and Stockyards. This extensive presence positions us strongly to capture a significant share of this rapidly growing market.

The acquisition will cover the transfer of all operational assets (excluding the land and building owned by the vendor), including leasehold buildings and improvements, electrical fittings, office equipment, plant and machinery, tools and equipment, furniture and fixtures, computers, and virtual/digital assets. On the manpower front, PVSL will selectively onboard employees based on operational requirements and organizational fit.

To ensure continuity and customer familiarity, the existing dealer has also agreed to grant a limited, non-exclusive, royalty-free license for co-branding, which we may use for up to 36 months post transfer.

The purchase of inventory will be separately valued and taken over as per predefined terms. PVSL is currently carrying out physical verification and ratification, following which the final consideration will be determined.

With this strategic expansion, PVSL extends its geographic presence with its key OEM partner, further strengthening its non-Kerala portfolio. Building on its strong presence in Karnataka and Tamil Nadu, this move also reinforces PVSL's long-standing partnership with the Maruti Suzuki brand.

Commenting on this development, Mr. Naveen Philip, Promoter and MD, Popular Vehicles and Services Limited said, "We are delighted to mark our entry into Telangana in collaboration with our long-standing partner, Maruti Suzuki India Limited. We are honoured to represent the MSIL brand at such an iconic location in Telangana. This acquisition is a significant milestone in our growth journey, enabling us to expand into a strategically important market in line with our long-term vision of establishing a pan-India presence and diversifying beyond Kerala. Telangana, being one of the fastest-growing automotive hubs, offers immense potential, and we believe this step will strengthen our customer reach, enhance service revenues, and reinforce our position as a leading integrated automotive dealership player.

As we expand our passenger vehicle business into newer geographies, we remain committed to investing in capability-building, technology-led service excellence, and customer-centric solutions that drive sustainable growth."

Shares of Popular Vehicles and Services Limited was last trading in BSE at Rs. 109.90 as compared to the previous close of Rs. 111.10. The total number of shares traded during the day was 3660 in over 390 trades.

The stock hit an intraday high of Rs. 113.65 and intraday low of 109.35. The net turnover during the day was Rs. 403732.00.

Source : Equity Bulls

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