Landmark Cars Limited is an automotive dealer planning to raise Rs 552 crore through an initial public offering (IPO). The subscription for the IPO will be open from December 13 to December 15, 2022. The price band is fixed in the range of Rs 481-506 per equity share.
The IPO comprises of fresh issue of shares worth Rs 150 crore and offer for sale of shares worth Rs 402 crore. The face value is set at Rs 5 apiece. The company has reserved shares worth Rs 1 crore for eligible employees of the company, who will get a discount of Rs 48 per share to the final issue price during the bidding process.
Company Summary
Landmark Cars Limited is a leading premium automotive dealers for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company also has a commercial vehicle dealership for Ashok Leyland in India.
Landmark Cars has a presence across the automotive retail value chain, including sales of new vehicles, after-sales services, sales of pre-owned passenger vehicles and facilitation of sales of third-party financial and insurance products. The company has a network of 112 outlets in eight Indian states and union territories, comprising of 59 sales showrooms and outlets as well as 53 after-sales service and spares outlets, as of end of June 2022.
Landmark Cars is focused on the premium and luxury automotive segments. In fiscal 2022, the company was the number one dealer for Mercedes in terms of retail sales in India and number one dealer for Honda and Jeep in terms of wholesale sales for fiscal 2022 in India.
In fiscal 2022, Landmark Cars contributed 15.8% to overall retail sales of Mercedes Benz, 5.8% to wholesale sales of Honda, 8.7% to wholesale sales of Volkswagen, 26.8% to wholesale sales of Jeep and 5.1% to wholesale sales of Renault, according to its red herring prospectus. In the three months ended June 30, 2022 and in fiscal 2022, the company sold 5,398 and 19,264 new vehicles, respectively,
In addition, the company has executed a letter of intent with the automaker BYD, a leading player in the global EV market, for dealership in the National Capital Region (Delhi) and Mumbai.
Further, the company has invested in Chatpay Commerce Private Limited (known as “Pitstop”) and Sheerdrive Private Limited (“Sheerdrive”). As of June 30, 2022, the company held a 8.26% equity interest in Pitstop, which aims to be a multi-brand car service and repair provider that focuses on reskilling and training technicians as well as providing access to the necessary modern equipment and OES and white labelled spare parts.
Moreover, Landmark Cars held a 19.97% equity interest in Sheerdrive, an auto technology start-up. Sheerdrive is focused on used car transactions at new car dealerships by leveraging its digital SaaS platform that enables digital evaluation and real time used car prices.
Company Strengths
- Leading automotive dealer for major OEMs with a strong focus on high growth segments.
- Growing presence in after-sales segment leading to predictable growth in revenues and improved margins.
- Comprehensive business model capturing the entire customer value-chain.
- Robust business processes which help in reducing costs, increasing efficiency and leveraging technological innovation.
Company Financials
Period | April-June FY23 | FY22 | FY21 | FY20 |
Total Assets (Rs in crore) | 1,209.37 | 1,085.38 | 887.9 | 831.77 |
Total Revenue (Rs in crore) | 801.9 | 2,989.12 | 1,966.34 | 2,228.93 |
Profit After Tax (Rs in crore) | 18.14 | 66.18 | 11.15 | -28.94 |
Profit After Tax margin | 2.27% | 2.22% | 0.57% | -1.30% |
Return on Capital Employed (ROCE) | 3.67% | 18.86% | 8.59% | 1.07% |
Return on Equity Ratio (ROE) | 6.72% | 26.66% | 6.11% | -17.03% |
Net Debt / EBITDA Ratio | 7.92 | 1.49 | 2.54 | 3.9 |
Purpose of the IPO
- The net proceeds from fresh issue of shares will be utilised for pre-payment, in full or in part, of borrowings availed by its subsidiaries aggregating up to Rs 120 crore.
- General corporate purposes.
- The net proceeds from the Offer for Sale of shares will be received by the selling shareholders.
- The company also expects that the listing of the equity shares will enhance their visibility and brand image among its existing and potential customers and creation of a public market for its equity shares.
Company Promoters
Sanjay Karsandas Thakker is the promoter of the company.
IPO Details
IPO Subscription Opening Date | December 13, 2022 |
IPO Subscription Closing Date | December 15, 2022 |
Face Value | Rs 5 per share |
Price Band | Rs 481 to Rs 506 per share |
Lot Size | 29 shares |
Issue Size | 1,09,09,091 shares aggregating up to Rs 552 crore |
Fresh Issue | 29,64,427 shares aggregating up to Rs 150 crore |
Offer for Sale | 79,44,664 shares aggregating up to Rs 402 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 29 | Rs 14,674 |
Retail (Maximum) | 13 | 377 | Rs 1,90,762 |
Small HNI (Minimum) | 14 | 406 | Rs 2,05,436 |
Large HNI (Minimum) | 69 | 2,001 | Rs 10,12,506 |
Allotment Details
Event | Tentative Date |
Allotment of Shares | December 20, 2022 |
Initiation of Refunds | December 21, 2022 |
Credit of Shares to Demat Account | December 22, 2022 |
Listing Date | December 23, 2022 |
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