Popular Vehicles & Services Limited , a prominent player in the automotive sector, has announced a significant financial move to support its wholly owned subsidiary, Popular Mega Motors (India) Private Limited. The company is extending a corporate guarantee of Rs. 5.00 crore to Tata Capital Limited for the renewal of a Channel Finance Facility for its subsidiary.

Key Details of the Corporate Guarantee

Impact and Implications

The corporate guarantee facilitates the renewal of the channel finance facility with a modified limit of Rs. 5.00 crore for Popular Mega Motors (India) Private Limited. This financial support is expected to bolster the subsidiary's operations and liquidity position.

Popular Vehicles & Services Limited has clarified that the transaction is conducted on an arm's length basis, ensuring transparency and fairness in the deal. The company has also stated that neither the promoters, promoter group members, nor directors have any interest in this transaction.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Popular Vehicles & Services Limited has duly informed the stock exchanges about this corporate action.

Financial Implications

According to the company's statement, the guarantee is provided on behalf of the subsidiary, which is part of the consolidated group. At present, there is no immediate impact on the company other than the necessary disclosures in its financial statements.

This move by Popular Vehicles & Services Limited demonstrates its commitment to supporting its subsidiary's financial needs and potentially enhancing the group's overall operational efficiency in the competitive automotive market.

Popular Vehicles & Services Limited (PVSL) has announced a strategic move to expand its business operations by acquiring R.K.S. Motor Private Limited, a Maruti Suzuki dealership in Telangana. The Board of Directors of PVSL approved the acquisition on October 8, 2025, marking a significant step in the company's growth strategy.

Acquisition Details

The acquisition, structured as a slump sale, comes with a price tag not exceeding ₹93 crores. This move is set to broaden PVSL's presence in the Indian automobile retail sector, particularly in the Telangana market. Here are the key details of the acquisition:

Strategic Implications

The acquisition of R.K.S. Motor Private Limited aligns with Popular Vehicles' expansion strategy, allowing the company to:

1. Enter the Telangana market, diversifying its geographical presence
2. Strengthen its partnership with Maruti Suzuki India Limited (MSIL)
3. Potentially increase its market share in the automobile dealership sector

Additional Board Approvals

In the same board meeting, PVSL also approved two other significant proposals:

1. Incorporation of a new step-down subsidiary under Popular Mega Motors (India) Private Limited to set up a spare parts and accessories e-commerce platform.
2. Evaluation of opportunities for adding another luxury dealership brand to its portfolio.

These decisions indicate PVSL's intent to not only expand geographically but also diversify its business model and brand offerings.

Market Impact

The acquisition is expected to have a positive impact on Popular Vehicles' market position. By acquiring an established dealership with a turnover of ₹492.90 crores (FY 2024-25), PVSL is poised to see an immediate boost in its revenue and market presence.

As the Indian automobile market continues to evolve, strategic acquisitions like this one could play a crucial role in shaping the competitive landscape of the auto dealership sector. Investors and market watchers will likely keep a close eye on how PVSL integrates this new acquisition and leverages it for future growth.

The completion of this deal, subject to necessary approvals and conditions, is anticipated to strengthen Popular Vehicles' position in the automotive retail space and potentially create value for its shareholders in the long run.