Categories: Stock Markets

Landmark Cars Limited IPO – Price, Lot size, Open date, GMP & Review

Introduction

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.

Read More: Top auto industry stocks in India Sector market size, Share Market, Present Status, Future Prospects

IPO Details

The key details of the Landmark Cars Limited IPO are as under. 

  1. IPO Size

The size of the IPO and different categories of the issue are:

CategoryDetails
IPO Opening Date13th December 2022
IPO Closing Date15th December 2022
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRs.5 per share
IPO Price BandRs. 481 – Rs. 506 per share
IPO SizeRs. 552 crores (1,09,09,091 shares)
Offer For SaleRs. 402 crores (79,44,664 shares)
Fresh IssueRs. 150 crores (29,64,427 shares)
  1. IPO Dates

The important dates for the Landmark Cards Limited IPO are highlighted below:

EventDate
Opening date13th December 2022
Closing Date15th December 2022
Allotment date20th December 2022
Refund Date21st December 2022
Share Credit Date22nd December 2022
Listing Date23rd December 2022
  1. IPO Lot Sizes

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: 

CategoryDetails
Investment in lots (for retail investors)Minimum – 1, Maximum – 13
SharesMinimum – 29, Maximum – 377
Investment amountMinimum – Rs. 14,674 Maximum – Rs. 1,90,762
  1. IPO Reservation

The categories of eligible investors and their share in the IPO are tabled below:

Category of InvestorReservation Percentage
QIB (Qualified Institutional Buyers)50%
NII (Non-Institutional Bidders)15%
RII (Retail Individual Investors)35%

Landmark Cars Limited IPO Objectives

The key objectives of the IPO are stated below:

  1. The primary objective of the IPO is to use the proceeds towards pre-payment in part or in full of the borrowings availed by the company’s subsidiaries.
  2. The other purpose is to use the proceeds to meet general corporate purposes.

Top things to know about Landmark Cars Limited IPO

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.

Financials of the company

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-20221,0852,9676617.8817.4526.52%
Mar-20218881,956113.093.056.23%
Mar-20208322,218-28-7.84-2.09-16.99%
(Source: RHP)

Strengths of the company

Some of the key strengths of Landmark Cars Limited that investors can take note of are:

CategoryDetails
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.

Risks of investment

Here are some of the risks that investors of Landmark Cars Limited IPO should know:

CategoryDetails
Business viability and profitabilityA 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.
CompetitionThere has been an increase in the competition in automotive dealerships through online and offline marketing.

What is the Grey Market Premium (GMP) of Landmark Cars Limited IPO?

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.

Should you apply for Landmark Cars Limited IPO?

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.   

How to apply for Landmark Cars Limited IPO?

Investors can invest in this IPO through the Fisdom app.

FAQs

1. What is the post-issue shareholding pattern of Landmark Cars Limited?

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.

2. Is the Landmark Cars IPO entirely fresh issue?

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). 

3. Which are the dealerships with Landmark Cars Limited and the segment that it caters to?

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.

4. What is the listing date for Landmark Cars IPO?

The listing date for Landmark Cars IPO is 23rd December 2022 to be listed on BSE and NSE.

5. What is the maximum QIB participation in the Landmark Cars IPO?

The maximum QIB participation in the Landmark Cars IPO is up to 50% of the IPO size.

Interesting reads..

Marisha Bhatt

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