Landmark Cars IPO: GMP, key things to know ahead of subscription opening

Landmark Cars IPO consists of a fresh issue of equity shares aggregating to ₹150 crore and an Offer-For-Sale (OFS) of up to ₹402 crore. Those selling shares through the OFS route are TPG Growth II SF PTE Ltd, Sanjay Karsandas Thakker HUF, Aastha Limited and Garima Misra. Proceeds from its fresh issuance worth ₹120 crore will be utilised for payment of debt and general corporate purposes.

As per market observers, Landmark Cars shares are commanding a premium (GMP) of ₹45 in the grey market today. The company’s shares are expected to list on stock exchanges on Friday, December 23, 2022.

Landmark Cars, otherwise known as Group Landmark has a presence across the automotive retail value chain, which includes sales of new vehicles, after-sales service and repairs, including sales of spare parts, lubricants and accessories, and sales of pre-owned passenger vehicles.

TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. The company reported a loss of ₹29 crore in fiscal 2020 and may incur additional losses in the future.

The company started its operations and opened first dealership for Honda in 1998, and has expanded network to include 112 outlets in eight Indian states, comprising 61 sales outlets and 51 after-sales service and spares outlets, as of September 30, 2021.

The company’s services and repair offerings at each of the dealerships comprise repair and collision repair services and include warranty work, insurance claim work and customer paid services. After-sales service and spares business provides a stable revenue stream and contributes to higher-margin revenues at each of the dealerships, the company said in its draft red herring prospectus (DRHP).

Axis Capital and ICICI Securities are the book running lead managers to the public issue.