Landmark Cars IPO ends with decent subscription

Published on Dec 16, 2022 10:10

The initial public offer (IPO) of Landmark Cars received bids for 2,46,45,911 shares as against 80,41,805 crore shares on offer. The issue was subscribed 3.06 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 8.71 times. The Non Institutional Investors (NIIs) category was subscribed 1.32 times.

However, the Retail Individual Investors (RIIs) category was subscribed just 59%.

The issue opened for bidding on Tuesday (13 December 2022) and it closed on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 481-506 per share.

The IPO comprised fresh issue of equity shares worth up to Rs 150 crore and an offer for sale of Rs 402 crore by existing shareholders.

Promoters and promoter group held an aggregate of 22,062,378 equity shares, aggregating to 60.24% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 55.73%.

The objectives for the fresh issue are pre-payment of Rs 120 crore borrowings availed by subsidiaries and remaining amount to be used for general corporate purposes.

Ahead of the IPO, Landmark Cars on Monday, 12 December 2022, raised Rs 165.29 crore from anchor investors. The board allotted 32,66,797 shares at Rs 506 per share to 14 anchor investors.

Landmark Cars is a premium automotive retail business in India, with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. The company has a commercial vehicle dealership with Ashok Leyland in India.

On a consolidated basis, the company reported net profit of Rs 17.81 crore and sales of Rs 800.27 crore in the three months ended June 2022.