Popular vehicles & services Limited has announced the immediate closure of its wholly-owned subsidiary Popular Auto Dealers Private Limited's JCB dealership operations, effective January 28, 2026. The decision marks the end of the subsidiary's role as an authorized distributor for JCB India Limited, covering both sales and service operations.

Financial Impact and Business Contribution

The closure affects a business segment with measurable financial contribution to the parent company's operations. The JCB dealership operations generated specific revenue figures during the last financial year.

Reasons for Closure

The company has attributed the closure to operational and strategic challenges that made the business unsustainable. The primary factors cited include:

• Lower profit margins in the JCB dealership business
• Foreseen challenges in maintaining business viability
• Strategic decision to discontinue operations rather than continue with reduced profitability

Regulatory Compliance and Timeline

The closure has been executed in compliance with regulatory requirements under SEBI regulations. Popular Vehicles and Services Limited filed the necessary disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The subsidiary's board approved the closure decision, marking the complete discontinuation of JCB-related business operations. No binding agreements for sale of the unit or division were involved in this closure, as the company opted for direct cessation of operations rather than a transfer or sale arrangement.

Popular Vehicles & Services Limited has announced the provision of a corporate guarantee worth ₹5.00 crores to its subsidiary Prabal Motors Private Limited, as disclosed in a regulatory filing dated January 19, 2026. The guarantee arrangement involves DBS Bank India Limited and covers multiple banking facilities for the subsidiary company.

Corporate Guarantee Details

The corporate guarantee structure encompasses two distinct banking facilities provided by DBS Bank India Limited to Prabal Motors Private Limited:

The guarantee is being extended to support the subsidiary's operational financing requirements and working capital needs through established banking relationships.

Regulatory Compliance and Disclosure

Popular Vehicles and Services Limited has made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Transaction Structure and Independence

The company has clarified several important aspects of this corporate guarantee arrangement:

• Subsidiary Relationship: Prabal Motors Private Limited is a wholly-owned subsidiary of Popular Vehicles and Services Limited
• Arm's Length Transaction: The guarantee is being provided on an arm's length basis
• No Promoter Interest: None of the promoters, promoter group members, or directors have any personal interest in this transaction

Financial Impact Assessment

According to the company's disclosure, the corporate guarantee is not expected to have any significant operational impact on Popular Vehicles and Services Limited. The primary effect will be the inclusion of this guarantee obligation in the company's financial statements as part of standard accounting and disclosure practices.

The guarantee arrangement reflects the parent company's support for its subsidiary's business operations and financing requirements, while maintaining proper corporate governance standards and regulatory compliance protocols.