Landmark Cars IPO: GMP, key things to know before subscription opens

 

• The Landmark Cars IPO includes a fresh issue of equity shares totaling ₹150 crore and an OFS of up to ₹402 crore

Amidst the IPO rush, the ₹552 crore initial public offering of automobile dealership chain Landmark Cars Ltd will open for public subscription next week on Tuesday, December 13, 2022. The company has fixed a price band of ₹481-506 per share for its initial share sale. Which will end on Thursday, December 15, 2022.

The Landmark Cars IPO comprises equity shares totaling ₹150 crore and an offer-for-sale (OFS) of up to ₹402 crore. Among those who sold shares through the OFS route are TPG Growth II SF Pte Ltd, Sanjay Karsandas Thakkar HUF, Aastha Ltd and Garima Mishra. The newly released funds worth ₹120 crore will be used to pay down debt and for general corporate purposes.

According to market observers, Landmark Cars shares are trading at a premium (GMP) of ₹45 in the gray market today. The shares of the company are expected to be listed on the stock exchanges on Friday, December 23, 2022.

Landmark Cars, otherwise known as Group Landmark, is present in the automotive retail value chain, which includes the sale, after-sales service and repair of new vehicles, including the sale and pre-sales of spare parts, lubricants and accessories. Includes sale of owned passenger vehicles. ,

TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. The company reported a loss of ₹29 crore in FY2020 and may incur additional losses in the future.

The company began its operations and opened the first dealership for Honda in 1998, and has expanded the network to include 112 outlets across eight Indian states by September 30, 2021, with 61 sales outlets and 51 after-sales service and spares Outlets included.

The company's services and repairs offering at each dealership includes repair and collision repair services and includes warranty work, insurance claim work and customer payment services. The company in its Draft Red Herring Prospectus (DRHP) said the after-sales service and spares business provides a steady revenue stream and contributes to high-margin revenue at each dealership.