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Quadros Motors to go in for IPO

PANAJI : Automobile dealer Quadros Motors is planning to go public, said chairman and managing director, Evencio Quadros on Saturday.  Speaking to media he said that almost 80 per cent of the initial public listing (IPO) work is complete and balance work will be in the next two months. The company, he said is tied up with merchant bankers and is aiming for public listing before end- September 2016.  One of the largest automobile dealers in Goa the Quadros group is in dealerships of two and four wheelers. The flagship company Quadros Motors is in dealership of two-wheelers Suzuki and Mahindra, while group companies are involved in dealership of Vespa, Renault, Yamaha and Exide lubricants.

All dealerships have maintained searing pace of growth in the last two years and have combined turnover in range of Rs 100 crore, said Quadros. The turnover of Quadros Motors, he added, is about Rs 35 crore currently.

Mining closure and lower off-take in automobiles in Goa has not affected two-wheeler market as much it is affected car sales, he said. The decision to take on Renault agency in 2012 after local economy slow-down has paid off as Renault Duster is fared very well in the market.  Similarly the lubricants agency is also lucrative as the margins are high, added Quadros.

He said that the public listing will unlock value for his group and help it grow. Further the purpose of the listing is to gain stock exchange presence.

Present in the media briefing was Clifton Desilva, director, Mumbai based Altina Securities, listing consultant. Desilva said that Quadros Motors will most likely seek listing on the SME platform of NSE and BSE. The platform enables family businesses to retain control while benefitting from listing.

The size of IPO will be in the range of rupees two-three crore. It could be a “silent public issue” with family and close friends subscribing to the equity capital, said Desilva. Listing in the main exchange of BSE and NSE is expensive with cost to the entrepreneur going up to rupees two-three crore. Comparatively a SME listing is affordable at about Rs 35-40 lakh and Goan business houses could consider it, he said.

Going forward Quadros Motors (after listing) plans are to merge all the group companies into one. The merged entity is aiming for turnover of Rs 500 crore in the next five years, said Evencio Quadros.

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