Landmark Cars IPO: HNIs, employees portion continue to rise on Day 2; check latest GMP
Landmark Cars IPO: High net-worth investors and employees continue to show a strong appetite for Landmark Cars IPO even on the second day, while demand has picked up among retail investors. So far on Wednesday, 31% of the IPO has been subscribed. The IPO is a mixture of fresh issues and an offer for sale. In the grey market, the IPO traded at a premium price of ₹20 per equity share.
As per NSE data, at around 1.09 pm, cumulatively the IPO received bids of 25,25,842 equity shares — subscribing by 31% of the total offered size of 80,41,805 equity shares. The portion reserved for employees fully subscribed by 1.61 times, while non-institutional investors aka HNIs portion subscribed by 71%. Against the reserved size, the retail investors’ portion subscribed by 27%, on the other hand, the qualified institutional buyers (QIBs) gave dull demand with a portion subscribing merely by 9%.
The company who launched its IPO on December 13 is looking to raise about ₹552 crore. The issue consists of fresh issues worth ₹150 crore and an offer for sale (OFS) of up to ₹402 crore. Subscriptions under the IPO will end on December 15. TPG Growth II SF, Aastha Limited, Sanjay Karsandas Thakker HUF, and Garima Misra are selling shareholders under the OFS.
The equity shares offered under the issue are fixed at a price band of ₹481 per share and ₹506 per share. There is a discount of ₹48 per equity share also being offered to eligible employees bidding in the Employee Reservation portion. Of the total, 50% of the IPO size is reserved for QIBs, while 35% is kept for retail investors and 15% is allotted to NIIs.
Proceeds from the fresh issue are planned to be used for pre-payment of borrowings availed by the company’s subsidiaries and general corporate purposes.
Landmark Cars are among the leading 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.
Post-IPO issue, the company’s equity shares will be listed on exchanges BSE and NSE.
With the latest GMP of ₹20, the potential listing price of Landmark Cars on stock exchanges comes to around ₹532 per share as of now. However, this outlook is likely to change going forward.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.