Popular Vehicles & Services has announced that its subsidiary Imperion Cars Private Limited has secured three Letters of Intent (LOIs) from Audi India for retail operations across Telangana and Andhra Pradesh. Imperion Cars is a wholly-owned subsidiary of Popular Mega Motors (India) Private Limited, which is itself a subsidiary of Popular Vehicles & Services.

Strategic Partnership and Facility Details

The LOIs enable the company to take over the business of existing Audi dealers in these states, marking the commencement of a new dealer relationship with the premium luxury automobile brand. The partnership will establish a total of 5 Audi touchpoints across both states.

Market Expansion Strategy

This development represents an important milestone in the company's growth strategy and strategic expansion of its luxury portfolio, building on its existing presence through Jaguar Land Rover. The Hyderabad facility reinforces the company's recent expansion in Telangana, while establishments in Visakhapatnam and Vijayawada mark the company's entry into Andhra Pradesh.

The company will have an exclusive Audi presence in both Visakhapatnam and Vijayawada, strengthening its position in these key, high-growth markets.

Management Commentary

Commenting on this development, Mr. Naveen Philip, Promoter and MD of Popular Vehicles and Services Limited, stated: "We are pleased to announce the commencement of our relationship with Audi India, further expanding our luxury segment portfolio. This partnership represents an important milestone in our journey as we continue to strengthen our presence in high-growth markets."

He further added: "The addition of Audi aligns well with our strategy of diversifying beyond our traditional geographies, while also strengthening our position in existing markets. We believe the luxury car market in these regions offers significant long-term potential."

Company Overview

Popular Vehicles and Services Limited operates multi-brand automobile dealerships across six states with an extensive network comprising 56 showrooms, 139 sales outlets and booking offices, 33 pre-owned vehicle showrooms, 159 authorized service centers, 50 retail outlets, and 25 warehouses. The company operates passenger vehicle dealerships of Maruti Suzuki India Limited, Jaguar Land Rover India Limited, commercial vehicle dealership of Tata Motors and Bharat Benz, and Ather Energy in the electric vehicle space.

Popular Vehicles & Services Limited has informed stock exchanges about a regulatory action taken against its subsidiary company regarding GST compliance. The disclosure was made under Regulation 30 of SEBI listing requirements.

GST Demand Details

Popular Vehicles & Services disclosed that its subsidiary Prabal Motors Private Limited received a GST demand of ₹1.01 crores for alleged excess Input Tax Credit claims during FY2021-22, along with a penalty of ₹10.08 lakhs. The action was initiated by Mr. Karthikeyan S., Assistant Commissioner, Coimbatore-IV Division.

Nature of Alleged Violation

The department has claimed that Prabal Motors Private Limited had claimed excess Input Tax Credit (ITC) during FY2021-22. The total amount of alleged excess ITC claimed stands at ₹1,00,83,198. This forms the basis for the tax demand raised by the GST authorities.

Financial Impact Assessment

According to the company's disclosure, the financial impact on Popular Vehicles and Services Limited is limited to the amounts specified in the demand order. The company has stated that there is no additional financial impact on the parent company beyond:

• Tax demand of ₹1,00,83,198
• Applicable interest until the date of actual payment
• Penalty of ₹10,08,020

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to disclose material events that could impact their operations or financial position.

The company has informed both BSE and NSE about this development, ensuring transparency with stakeholders and regulatory compliance.