The share sale of Landmark Cars Limited via initial public offering (IPO) will open for subscription on 13 December and end on September 15. Landmark Cars is planning to raise Rs 552 crore which is a mix of fresh issue of shares and an offer for sale (OFS) by its promoters.
The IPO consists of fresh issue of Rs 150 crore and an OFS of Rs 402 crore by its promoters.
The tentative date of allotment is December 20 and the share is scheduled to be listed on the stock exchanges on December 23, 2022.
Price Band And Lot Size
The price band for Landmark Cars IPO has been fixed between Rs 481-506. Retail investors can bid for a minimum of one lot of 29 shares. At the upper end of the price band (Rs 506), one lot of Landmark Cars shares will cost Rs 14,674. A retail investor is allowed to bid for maximum of 13 lots.
35 per cent shares in the IPO have been reserved for retail investors and 15 per cent have been reserved for Non Institutional Investors (NII) which include high net-worth individuals. Qualified Institutional Buyers (QIBs), which include financial institutions such as banks, mutual funds and insurance companies, can purchase not more than 50 per cent of the net offer.
Issue Size
The promoters of the company plan to offload Rs 402 crore through the OFS component. The remaining Rs 150 crore of the IPO will be a fresh issue of equity share. This would bring down the promoter’s overall stake in the company from 60.24 per cent before the issue to 44.61 per cent once the IPO is completed. Sanjay Karsandas Thakker is the promoter of the company.
About Landmark Cars
Landmark Cars is in the retail automobile business and handles dealerships with premium brands such as Mercedes-Benz, Honda, Volkswagen, Jeep and Renault. Their services include retail sale of new vehicles, sale of pre-owned vehicles, after-sale service and repair, and sale of spare parts and accessories in addition to third party insurance products.
The company started its operations in 1998 when it opened a dealership for Honda in Ahmedabad. Since then, Landmark Cars has expanded to over 60 dealerships across 8 states. According to the draft red herring prospectus (DRHP) filed by the company, its after-sale service and sale of spare parts contribute to higher-margin revenues.
For the quarter ended June 2022, Landmark Cars recorded net revenue of Rs 801.9 crore while profits after tax (PAT) came in at Rs 18.14 crore.
Axis Capital Limited and ICICI Securities Limited are the book running lead managers for the IPO while Link Intime India is the appointed registrar for the issue.
