Landmark Cars Limited is India’s top premium car retailer, with Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault dealerships. (Source: CRISIL Report, December 2021). Landmark Cars IPO will hit the stock market in 13 December 2022.
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About Landmark Cars
They operate in all aspects of the automotive retail value chain, such as new vehicle sales, after-sales service and maintenance (such as the sale of spare parts, lubricants, and gadgets), pre-owned passenger automobile sales, and the assistance of third-party financial and insurance product sales.
They also serve Ashok Leyland’s heavy vehicle retail segment in India. They began operations and established their first Honda dealership in CY1998,.
As of September 30, 2021, they have extended their network to encompass 112* outlets in 8 Indian states, consisting of 61 sales showrooms and stores and 51* after-sales service and supplies stores. They are mostly interested in the premium and luxury vehicle markets.
Growth
From 2021 to 2026, CRISIL Research predicts that the premium segment will expand at a CAGR of 10-12 percent, whereas the luxury market will increase at a CAGR of 20-22 percent.
In Fiscal 2021, they were India’s top Mercedes-Benz, Honda, and Stellantis (Jeep) dealer, while in CY 2020, they were India’s top Volkswagen dealer. In CY2020, they were Renault’s third-largest dealer in terms of sales volume. (This includes the acquisition of Shaman Wheels Private Limited, the company acquired four after-sales service and spare parts facilities)
They sold 8,295 and 13,282 new vehicles in the six months ending September 30, 2021 and Fiscal 2021, correspondingly, comprising new Mercedes-Benz, Honda, Volkswagen, Jeep, and Renault passenger vehicles and new Ashok Leyland commercial vehicles.
Network
Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal, and the National Capital Territory of Delhi are among the states and union territories where their vehicle dealership network is located. In Fiscal 2021, these states accounted for more than 51% of Indian automobile demand. (Source: December 2021)
CRISIL Report They also have a digital footprint via their Group Landmark website, specific dealership websites, and OEM websites to exhibit their brands, including the most recent model debuts by their OEM partners, and to assist lead generation.
In December 2022, they started taking Group Landmark reservations online through its website, which has resulted in leading monthly sales.
Landmark Cars IPO
Landmark Cars Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 762 crore on 18 January 2022.
The offer includes a fresh issue of INR 150 crore and there is offer for sale (OFS) of INR 612 crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 30 crore in this issue.
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IPO
They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 998.69 | 887.89 | 831.77 | 1,008.03 | |
| Total Revenue | 1,419.79 | 1,966.34 | 2,228.93 | 2,834.62 | |
| Profit After Tax | 27.95 | 11.15 | (24.64) | (17.55) | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 3.09 | 3.05 | 3 |
| Financial Year 2020 | (7.84) | (7.84) | 2 |
| Financial Year 2019 | (7.01) | (7.00) | 1 |
| Weighted Average | (2.24) | (2.26) | |
| 30 Sep. 2021 | 7.58 | 7.40 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are among the basic elements that go into determining the Offer Price:
- Prominent automotive dealership with a significant focus on high-growth categories for key OEMs.
- Increasing after-sales footprint leads to reliable revenue growth and improved margins.
- An all-encompassing business model that captures the whole customer value chain.
- Robust corporate procedures that take advantage of technological advancements and digitization.
Landmark Cars Peer Comparison
There are no publicly traded enterprises in India that operate in a similar industry to theirs. As a result, providing an industry reference in regards to their company is impossible.
Landmark Cars IPO Details
| IPO Opening Date | 13 December 2022 |
| IPO Closing Date | 15 December 2022 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | INR 481 to 506 per equity share |
| Market Lot | 29 |
| Min Amount | INR 14,674 |
| Listing At | BSE, NSE |
| Issue Size | 551.9 Crore |
| Fresh Issue | 150 Crore |
| Offer for Sale | 612 Crore |
Landmark Cars IPO Date
Landmark Cars IPO opening date is 13 December 2022, and the closing date is 15 December 2022. The Landmark Cars issue may list is 23 December 2022.
| IPO Opening Date | 13 December 2022 |
| IPO Closing Date | 15 December 2022 |
| Basis of Allotment Date | 20 December 2022 |
| Initiation of Refunds | 21 December 2022 |
| Credit of Shares to Demat Account | 22 December 2022 |
| IPO Listing Date | 23 December 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
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| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Landmark IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Landmark IPO.
Landmark Cars IPO GMP
Landmark Cars IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Landmark Cars IPO Review
Landmark Cars limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Landmark Cars IPO is good or bad.
Landmark IPO Risk
- They are susceptible to OEMs’ strong control and constraints, which may have a negative effect on their business, as a result of the conditions of their dealership contracts.
- Their performance in India is determined by the perceived value, marketing, and general competitiveness of their OEMs’ vehicle brands.
- It’s possible that their investments in expanding their pre-owned vehicle industry and partnering with BYD to open a new electric passenger dealership will backfire.
- Changing economic conditions, as well as a variety of other issues, can have a significant negative impact on the car retail industry.
- The COVID-19 pandemic’s long-term impact is unknown and changing, and it might be continuing to have a negative impact on their business.
Other Threats
- Pricing limitations provided by their OEMs may have an impact on the margins gained from their maintenance and repair sector.
- They lost money in fiscal years 2020 and 2019, and they may lose money again in the future.
- The states of Gujarat and Maharashtra account for a substantial share of their corporate operations.
- Their operations are governed by a variety of federal and state laws, as well as state-specific notices and rules.
- Their parent company and subsidiaries hold unsecured, demand-repayable debts.
- There are ongoing legal actions concerning their Firm, Subsidiaries, Promoter, and Directors, and the results of these proceedings could have a detrimental impact on their business.
- Their insurance coverage might not be sufficient to cover all unexpected damages.
After-Sales Service and Spare Parts
Maintenance and repair operations are included in their after-sales service and spare parts packages at every of their dealerships, and also warranty assistance, insurance claim collaborate, and customer-paid solutions.
As of September 30, 2021, they serve as Mercedes-Benz, Honda, Volkswagen, Jeep, Renault, and Ashok Leyland approved service facilities, and they provide after-sales service and repairs via 51* after-sales service and spares stores.
They maintained 127,337, 213,755, 280,952 and 261,670 passenger vehicles in the last six months, as well as 5,343, 7,713, 10,088 and 10,236 commercial vehicles in 2021, 2020, and 2019.
Their after-sales service and parts and accessories sales in the last six months were 2,430.15 million, 4,229.56 million, 4,806.40 million, and 4,602.16 million in 2021, 2020, and 2019 respectively.
Pre-owned Passenger Vehicle Sales
At all of their dealerships, they acquire and sell used passenger cars. They follow the following business models:
- On a commission basis, they arrange the sale of used cars via their designated network of agents.
- They also sell the automobiles on their records following any necessary repairs.
- They also get a rebate from their OEMs when they trade in old cars for new ones. As a new car dealer, they have access to this incentive or over-allowance, which assists them in finalising these sales.
- In their pre-owned car business, they’ve also integrated a digital SaaS platform developed by Sheerdrive, an auto technology start-up in which they own 19.97 percent of the equity.
Landmark IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Landmark IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2022 | 1 | |||||
| December 2022 | 2 | |||||
| December 2022 | 3 |
Management
Their Organization has been regarded as a customer-centric, process-driven organisation with leadership roles in each of their OEM partners thanks to the expertise of their leadership team, and Promoter.
Sanjay Karsandas Thakker, their Promoter and Chairman, established their Company’s operation in 1998 by opening their first Honda dealership in Ahmedabad.
Their promoter grew their firm by emphasizing on building a solid workforce of committed and skillful individuals to help them reach industry leading positions with their OEM partners.
Mr. Thakker is backed up by a team of seasoned directors, including Executive Whole-Time Director Paras Somani, Executive Director Aryaman Sanjay Thakker, and TPG nominated Director Mr. Akshay Tanna. Their management team has been with the company for more than ten years.
Promoters
- Sanjay Karsandas Thakker
Promoter’s Holding
| Pre Issue Share Holding | 41.38 % |
| Post Issue Share Holding |
Landmark IPO Prospectus
Contact Details
Landmark Cars Limited
Landmark House, Opp. AEC,
S.G. Highway, Thaltej,
Near Gurudwara, Ahmedabad
380 059, Gujarat, India
Tel: 91 79 6618 5555
E-mail:[email protected]
Website: www.grouplandmark.in
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra
Telephone: +91 22 4918 6200
Email: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Axis Capital Limited
- ICICI Securities Limited
We hope we are able to answer all your questions about Landmark Cars IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
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Note:
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FAQ
Landmark IPO Opening Date?
Landmark Cars limited IPO will open is 13 December 2022.
Landmark IPO Listing Date?
Landmark Cars Limited IPO will list is 15 December 2022.
Landmark Cars IPO GMP Today?
Landmark Cars IPO Grey Market Premium is INR 0 .
Landmark Cars limited IPO Allotment Date?
Landmark IPO basis of allotment will be is 20 December 2022.
Lot size for Landmark Cars limited IPO?
Lot size for Landmark IPO is 29.
