Landmark Cars IPO Opens Today For Subscription, Should You Subscribe?

The Initial Public Offering (IPO) of Landmark Cars Ltd. opens today, 13 December 2022 for subscription and it will close on 15 December 2022. The IPO will be open for 3 days.

According to Anand Rathi's recent report on the IPO, it is a fresh issue of Rs 1,500 million used for Repayment and or prepayment in full or part certain borrowings availed by the company including Subsidiaries and General corporate purposes. The offer is an offer for sale of Rs 4,020 million. The company aims to garner Rs. 5,520 million at the upper level of the price band. The price band for the IPO is Rs. 481 -506. The minimum lot size is Rs 29 Equity Shares.

The book running lead managers of the IPO are Axis Capital Ltd. and ICICI Securities Ltd. The registrar of the offer is Link Intime India Pvt Ltd.

IPO Details

Issue Size (Value in ₹ million, Upper Band)	5520
Fresh Issue (No. of Shares in Lakhs)	29.6
Offer for Sale (No. of Shares in Lakhs)	79.4
Bid/Issue opens on	13/12/22
Bid/Issue closes on	15/12/22
Face Value	₹5.00
Price Band	481-506
Minimum Lot	29

 

Capital Structure & Share Holding Pattern

Capital Structure (₹ million)	Aggregate Value
Authorized share capital	270.5
Subscribed paid up capital (Pre-Offer)	183.13
Paid up capital (Post - Offer)	197.95

 

Share Holding Pattern %	Pre-Issue	Post Issue
Promoters & Promoter group	60.2	55.2
Public	39.8	44.8
Total	100	100

Valuation

Landmark cars limited has a leading automotive dealership for major OEMs with strong focus on high growth segment and growing presence in after-sales segment leading predictable growth in revenue and comprehensive business model with robust business process leveraging technological innovation and digitalization.

At the upper price band Landmark cars limited is trading at P/E of 31.34x with a market cap of ₹ 20,032 million post issue of equity shares and return on net worth of 26.5%.

Anand Rathi said, "We believe Landmark cars limited is fairly priced and recommend a "Subscribe- Long term" rating to the IPO." 

About the company

Landmark cars are a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. They also have a commercial vehicle dealership with Ashok Leyland in India. They have a presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs (including sales of spare parts, lubricants and accessories), sales of pre-owned passenger vehicles and facilitation of the sales of third-party financial and insurance products. They started their operations and opened their first dealership for Honda in CY1998, and they have expanded their network to include 112 outlets in 8 Indian states and union territories, comprised of 59 sales showrooms and outlets and 53 after-sales service and spares outlets, as of June 30, 2022. They are focused on the premium and luxury automotive segments. They were the number one dealer in India for Mercedes in terms of retail sales for Fiscal 2022, number one dealer in India for Honda and Jeep in terms of wholesale sales for Fiscal 2022 and were the top contributor to Volkswagen retail sales for calendar year 2021. In addition, they were the third largest dealership in India for Renault in terms of wholesale sales contribution for calendar year 2021. Its business includes New Vehicle Sales, Expansion into pure EV, After-Sales services and Spare parts, Pre-owned Passenger Vehicle Sales, and Third-party financial and insurance products.

 Landmark Cars limited is the parent holding company and is an authorized dealer for Mercedes-Benz. Landmark Cars Limited owns 100% of the share capital of their subsidiaries Landmark  Automobiles Private Limited (holding their Honda dealership), Benchmark Motors Private Limited (holding their Renault dealership), Landmark Lifestyle Cars Private Limited (holding their  Jeep dealership, Auto mark Motors Private Limited (holding their Volkswagen dealership), Landmark Commercial Vehicles Private Limited (holding their Ashok Leyland dealership) and Watermark Cars Private Limited (holding their accessories business, shared service centers); Motor one India Private Limited (formerly known as Landmark Pre-owned Cars Private Limited) (with effect from June 16, 2022) and 83% of the share capital of their subsidiary Landmark Cars (East) Private Limited (holding their Mercedes-Benz Kolkata dealership). Motor One India Private Limited has entered into distribution agreement with Smart Origins Pty Ltd. for distribution of automobile care product and accessories under the brand name of Motor One. They are comprised of the following businesses: (i) new vehicle sales, (ii) pre-owned passenger vehicle sales, (iii) after sales service and spares (including the sale of spare parts, lubricants, accessories and other product) and (iv)the facilitation of sale of third party financial and insurance products. 

Disclaimer

The IPO has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.