Auto dealership chain Landmark Cars IPO to open on December 13; sets price band at Rs 481-506/share

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 December 13.

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

The public 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.

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 payment of debt and general corporate purposes.

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Half of the issue size has been reserved for qualified institutional investors, 35 per cent for the retail investors and the remaining 15 per cent 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.

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This was due to the decrease in revenue of 21.51 per cent and new vehicle sales by 24.36 per cent which were primarily attributable to the higher discounts offered to customers to sell entire stock of Bharat Emission Stage IV engine vehicles and effects from the COVID-19 pandemic.

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