Popular Vehicles and Services Limited has informed the Exchange regarding Notice of Postal Ballot
PVSL · price
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Awaiting price reaction for this filing.
Popular Vehicles and Services Limited (PVSL) has issued a Postal Ballot notice seeking shareholder approval to divest two wholly owned subsidiaries to Automart Services Private Limited (a related party). The first is Vision Motors Private Limited (VMPL), a step-down subsidiary held through Popular Mega Motors, which runs Honda car dealerships in Kerala with 8 showrooms, 3 sales outlets, and 8 service centres, being sold for Rs. 68 crore. The second is Kuttukaran Green Private Limited (KGPL), which runs Piaggio electric three-wheeler dealerships across 6 districts in Kerala, being sold for Rs. 2 crore. Combined deal value is Rs. 70 crore, with e-voting open from June 5 to July 4, 2025. The Board had approved these divestments in February 2025, citing the need to improve working capital, enable capital efficiency, and support strategic diversification into markets outside Kerala, where the group currently derives about 62% of its consolidated revenue.
For shareholders, this is a cash unlock of Rs. 70 crore from non-core or peripheral auto-dealership businesses (VMPL and KGPL together contribute only about 4.9% of Kerala revenue, or roughly 3% of consolidated revenue). Approval should free up capital for the company's main Maruti Suzuki dealership business and expansion into newer markets, though as a related-party transaction, shareholders will want to monitor the valuation closely.