With the end of the year 2022 coming near, there are a few more IPOs to be launched in the stock market. The latest IPO for investors is from Landmark Cars Limited belonging to the auto sector.
Landmark Cars Limited IPO was open for subscription from 13th to 15th December 2022. The issue was subscribed 3 times on the final day of subscription. Grey market premium (GMP) of the issue was in negative, indicating that the company’s shares were available at a discount in the grey market.
Here are all the essential details of Landmark Cars Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the Landmark Cars Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 13th December 2022 |
| IPO Closing Date | 15th December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.5 per share |
| IPO Price Band | Rs. 481 – Rs. 506 per share |
| IPO Size | Rs. 552 crores (1,09,09,091 shares) |
| Offer For Sale | Rs. 402 crores (79,44,664 shares) |
| Fresh Issue | Rs. 150 crores (29,64,427 shares) |
The important dates for the Landmark Cards Limited IPO are highlighted below:
| Event | Date |
| Opening date | 13th December 2022 |
| Closing Date | 15th December 2022 |
| Allotment date | 20th December 2022 |
| Refund Date | 21st December 2022 |
| Share Credit Date | 22nd December 2022 |
| Listing Date | 23rd December 2022 |
Investors can subscribe to the shares of Landmark Cars Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1, Maximum – 13 |
| Shares | Minimum – 29, Maximum – 377 |
| Investment amount | Minimum – Rs. 14,674 Maximum – Rs. 1,90,762 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
The key objectives of the IPO are stated below:
Landmark Cars Limited is a leading name in the car dealership business in India. It has dealerships from reputed names in the auto sector like Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault from the retail car segment. The company also has customers in the commercial vehicle segment through its dealership of Ashok Leyland in the country.
The company caters to the entire value chain of the car segment right from the retail sales of cars to servicing and repairs as well as selling spares, lubricants, and other ancillary products. The other services offered by the company include sales of pre-owned passenger vehicles and third-party finance and insurance products.
Landmark Cars Limited also has the benefit of an extensive network of outlets in the country that helps in spreading its business to 31 cities across 8 major states and Union Territories in India that have a high concentration of demand for cars. These states are Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal, and the National Capital Territory of Delhi. As of September 2021, this network of the company includes 112 outlets in the above mentioned 8 states, 61 sales showrooms, and outlets as well as 51 after-sales services and spare outlets.
Landmark Cars Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 1,085 | 2,967 | 66 | 17.88 | 17.45 | 26.52% |
| Mar-2021 | 888 | 1,956 | 11 | 3.09 | 3.05 | 6.23% |
| Mar-2020 | 832 | 2,218 | -28 | -7.84 | -2.09 | -16.99% |
Some of the key strengths of Landmark Cars Limited that investors can take note of are:
| Category | Details |
| Business model | The company is a leading name in the automotive dealership business catering to the premium and luxury car segment and having dealerships of major OEMs.They also have the advantage of catering to the entire value chain business in the car sales and servicing segment.They have been having a consistently growing presence in the after-sales segment giving them the backing of predictable and steady sales and revenues coupled with higher margins.The company has strong business processes leveraging effective technological innovations and digitization. |
| Financials | The company has shown improvement in its financials in the past three years and has tremendous growth potential in the retail car as well as commercial vehicle segment. |
Here are some of the risks that investors of Landmark Cars Limited IPO should know:
| Category | Details |
| Business viability and profitability | A significant portion of the business is concentrated in Maharashtra and Gujarat and any dramatic changes in demand from these states can affect its bottom line. The company’s business is subject to strict adherence to the regulations of the OEMs and that of the various Central Government and State Government laws that can have an adverse impact on the business. The company has reported a loss in the recent past and any economic downturn can have a negative impact on the sector as a whole. |
| Competition | There has been an increase in the competition in automotive dealerships through online and offline marketing. |
As of December 19th, 2022, the grey market premium for the shares of Landmark Cars Limited was in negative as per market observers. Investors will therefore have to wait until the listing day to see if the IPO fetches any listing gains.
Landmark Cars Limited has a strong business model and caters to the entire value chain business in the retail car sales and servicing segment. They have dealership contracts from leading names in the auto sector and also in the commercial vehicle segment. Currently, there are no listed peers in this segment but based on their financial performance in the past years, the issue seems to be adequately priced. Investors can, therefore, invest in this IPO for listing gains as well as include the company in the long-term investment portfolio.
Investors can invest in this IPO through the Fisdom app.
The post-issue shareholding pattern of Landmark Cars Limited will be 55.4% public shareholding and the balance of 44.6% will be held by promoters.
The Landmark Cars IPO of Rs. 552 crores is a partly fresh issue (Rs. 150 crores) and partly an Offer for Sale (Rs. 402 crores).
Landmark Cars Limited caters primarily to the premium and luxury car segment and has dealership contracts with Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault in the retail cars segment.
The listing date for Landmark Cars IPO is 23rd December 2022 to be listed on BSE and NSE.
The maximum QIB participation in the Landmark Cars IPO is up to 50% of the IPO size.
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