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Landmark Cars Limited IPO Details with Share Price and Issue Size

05 Jan 2023
Opening Date  13, December 2022
Closing Date 15, December  2022
Refund Initiation 21, December  2022
Listing Date 23, December 2022
Face Value ₹5 per equity share
IPO Price Band ₹481 to ₹506 per equity share
Minimum Order Quantity 29 Shares
Issue Size ₹552.00 Cr

 

The month of December 2022, saw a couple of IPOs getting listed in the secondary market. Amongst those were Dharmaj Crop Guard and Uniports India Ltd. Dharmaj Crop Guard generated listing gains of over 12% for retail investors, the listing for Uniports are awaited. Now, as we come towards the end of this calendar year, there are some IPOs queued to be going live - among which is - Landmark Cars Ltd. In this article, let’s study the details of this IPO which will eventually help you to decide if it’s investment-worthy or not!

About the Company

Incorporated in the year 1998, Landmark Cars Limited is the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. The company also caters to the commercial vehicle retail business of Ashok Leyland in India.

Landmark Cars Ltd offers services such as sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles and facilitation of the sales of third-party finance and insurance products. As of June 30, 2022; the company has a network of 112 outlets in 8 Indian states & union territories, comprising 59 sales showrooms and outlets and 53 after-sales service and spares outlets.

The financials of the company for the last three financial years are given as below:

 

Particulars Three month period ended June 30, 2022 As of and for the Financial Year ended March 31
2022 2021 2020
  Equity share capital 18 18 18 18
  Networth 268 247 182 169
  Total Borrowings 464 308 327 358
  Revenue from Operations 800 2977 1956 2219
  EBITDA 53 187 120 83
  Profit after Tax 18 66 11 -29
  Earnings per Share (diluted) 5 17 3 -8
  Return on Equity 7% 27% 6% -17%
  Return on Capital Employed 4% 19% 9% 1%

 

all numbers stated are in crore, except share data.

*not annualized

Landmark Cars Ltd details -

Let’s now move on to the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Landmark Cars Ltd Ltd  date and its share price.

Landmark Cars Ltd issue date -

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from December 13th and will be available for subscription until December 15th, 2022.

Landmark Cars Ltd issue size -

The IPO comprises a fresh issue of ₹150 crores and an offer-for-sale of ₹402 crores by promoters of the company. In total, the company aims to raise about ₹552 crores via IPO.

50% of the offer is for QIBs (qualified institutional buyers), 35% for retail investors, and the balance 15% for NIBs (non-institutional investors).

Landmark Cars Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹481 to ₹506 per equity share

Landmark Cars Ltd listing

Since the IPO of Landmark Cars Ltd Ltd  is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Landmark Cars Ltd objectives

The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:

  • Pre-payment, in full or in part, of borrowings availed by Subsidiaries
  • General Corporate Purpose.

Landmark Cars Ltd Strengths

  • Leading automotive dealership for major OEMs with a strong focus on high-growth segments
  • Growing presence in the after-sales segment leading to predictable growth in revenues and superior margins
  • Comprehensive business model capturing entire customer value-chain
  • Robust business processes leveraging technological innovation and digitalization

Landmark Cars Ltd risks

  • Significant influence of and restrictions imposed by OEMs could impact business
  • 70% of business are concentrated in Gujarat & Maharashtra
  • The automotive retail industry is subject to various government laws & regulations
  • Industry is sensitive to changing economic conditions

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!

It’s all easy. It’s all good.

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