Landmark Cars IPO Day 1: The Rs 552-crore initial public offering (IPO) of Landmark Cars kicked off for subscription on Tuesday, December 13. Investors can subscribe to the issue in the range of Rs 481-506 apiece till Thursday, December 15. The auto dealer company aims to raise 552 crore from its public offer out of which Rs 402 crore is reserved for OFS (offer for sale).
Landmark Cars IPO: Price Band
The auto company has fixed Landmark Cars IPO price band at Rs 481 to Rs 506 per equity share.
Landmark Cars IPO: Size
The auto dealer company aims to raise Rs 552 crore from its public offer out of which Rs 150 crore is expected to fresh issues whereas rest Rs 402 crore is reserved via offer for sale (OFS) route.
Landmark Cars IPO: Lot Size
A bidder will be able to apply for the IPO in lot and one lot will comprise 29 shares of the company.
Landmark Cars IPO: Important Dates
Link Intime India Private Ltd has been appointed as official registrar of the public issue. The public offer is proposed for listing on BSE and NSE and most likely date for listing of shares is 23rd December 2022.
Landmark Cars IPO: GMP
Ahead of Landmark Cars IPO opening date, grey market is also giving positive signals in regard to the public offer. According to market observers, shares of Landmark Cars are available at a premium of Rs 53 per equity share.
Should you Invest?
On whether one should apply for the IPO or not, Abhay Doshi, Founder at UnlistedArena.com said, “Landmark is India’s leading premium automotive retail company. It has a presence throughout the automotive retail value chain, including new vehicle sales, after-sales service and repairs, pre-owned passenger vehicle sales, and the facilitation of third-party financial and insurance product sales. The company’s strategy is to broaden their after-sales service offering in order to serve more customers and increase their higher-margin service and repair revenues.”
Choice Broking said investors should excercise caution before subscribing. At the higher price band, the company is demanding a P/S multiple of 0.7x, which seems to be significantly higher than the international peers having an almost similar business profile, said the brokerage with a ‘subscribe with caution’ tag.
Landmark intends to focus on expanding its business in high-growth segments like premium and luxury passenger vehicles including UVs and electric vehicles. They aim to leverage their relationships with the OEMs, said Religare.
“The company also executed a letter of intent with the automaker BYD, a leading player in the global EV market to be their dealer in the National Capital Delhi and Mumbai in respect of their electric passenger vehicles,” it added with ‘neutral’ rating.
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