Landmark Cars IPO To Open On Dec. 13

Automobile dealership chain Landmark Cars Ltd. on Thursday said it has fixed a price band of Rs 481-506 per share for its Rs 552 crore initial share-sale that opens for public subscription on Dec. 13.

The three-day initial public offering will conclude on Dec. 15 and the bidding for anchor investors will open on Dec. 12, the company said in a statement.

The IPO consists of a fresh issue of equity shares aggregating to Rs 150 crore and an offer-for-sale of up to Rs 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 Rs 120 crore will be utilised for debt repayment and general corporate purposes.

Half of the issue size has been reserved for qualified institutional investors, 35% for retail investors and the remaining 15% for non-institutional investors.

Investors can bid for a minimum of 29 equity shares and in multiples of the same thereafter.

TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.

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.

The company reported a loss of Rs 28.93 crore in fiscal 2020 and may incur additional losses in the future.

Revenue declined 21.51% with new vehicle sales easing 24.36%, primarily due to higher discounts offered to customers to sell the entire stock of Bharat Emission Stage IV engine vehicles and the effects of Covid-19 pandemic.

Axis Capital and ICICI Securities are the book-running lead managers to the issue. The equity shares of the company will be listed on both the BSE and NSE on Dec. 23.