Landmark Cars IPO’s retail individual investor (RII) portion was subscribed 17 per cent. The portfolio for non institutional investor (NIIs) was subscribed 39 per cent. The portion for qualified institutional buyers (QIBs) received bids for 1,624 shares.
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The Rs 552 crore Landmark Cars IPO was subscribed 17 per cent on the Day 1 of the bidding process on Tuesday, with the employee quota seeing 1.2 times subscription. The issue received bids for 14,04,383 shares against the issue size of 80,41,805 shares. The quota reserved for retail individual investors (RIIs) was subscribed 17 per cent while that for non institutional investors(NIIs) was subscribed 39 per cent. The qualified institutional buyer (QIB) portion received bids for 1,624 shares.
The IPO, which is being sold in the price band of Rs 481-506, is asking a valuation of 28 times FY22 earnings per share. A play on premium, luxury car sales in the domestic market, the IPO was last commanding a grey market premium (GMP) of Rs 8, down from Rs 30 on Monday and above-Rs 50 level in the last few days.
Landmark Cars has automotive dealership for major OEMs with strong focus on high growth segments namely premium and luxury. Landmark’s growing presence in after-sales segment is leading to predictable growth in revenues and superior margins, ICICIdirect said, which added that Landmark’s inclusive business model is capturing entire customer value chain.
Ahead of the issue, Landmark Cars allocated 32,66,797 shares to anchor investors, aggregating Rs 165.29 crore. The issue consists of a fresh issue of equity shares aggregating to Rs 150 crore and an offer-for-sale (OFS) of up to Rs 402 crore. Among selling shareholders are Sanjay Karsandas Thakker HUF, TPG Growth II SF PTE, Aastha and Garima Misra.
Sales at Landmark Cars have grown at a CAGR of 15.8 per cent over FY20-22, with the company turning meaningfully profitable in FY22 with PAT at Rs 66 crore in FY22, led by improvement in Ebitda margin profile to 6 per cent against 3 per cent in FY20.
Arihant Capital said Landmark Cars has demonstrated stellar revenue growth at 52.17 per cent last year. It is well placed in its target markets with little threat from bigger players, Arihant Capital said.
“Considering its strategies to gain from entire customer value chain, entering the EV segment and plans for growing presence in after sales segment, the company is well poised to grow its market share in the years to come. We recommend that investors subscribe for listing gains,” it said.
The IPO will conclude on December 15, the basis of allotment will finalised by December 20, the initiation of funds is expected by December 21, credit of shares by December 22 and listing by December 23.
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