Landmark Cars IPO will be floated in December 2022. The company filed Draft Red Herring Prospectus (DRHP) with market regulator SEBI on January 18, 2022, for an INR 662 Crore Initial public offering (IPO). Landmark Cars Limited IPO comprises an Offer for Sale (OFS) of INR 612 Crore and a fresh issue of INR 150 Crore.
The face value of each equity share is INR 5. The promoter and investor are selling a part of his stake in the company through public issues. TPG GROWTH II SF PTE. LTD. is selling INR 400 Crore while the promoter group SANJAY KARSANDAS THAKKER HUF is selling INR 62 Crores of shares in the issue. Other promoters such as AASTHA LIMITED and GARIMA MISRA are selling INR 120 Crore and INR 30 Crore respectively.
Landmark Cars Limited Business Description
Landmark Cars Limited – the top premium car retailer – was founded in 1998 in India. The company is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company also caters to the commercial vehicle retail business of Ashok Leyland in India.
- Landmark Cars Ltd. is present across the value chain of the automotive retail industry.
- Landmark sales of new cars and offers after-sales service and maintenance that includes selling spare parts, lubricants, and accessories.
- The company also sells used passenger cars and facilitates the sale of third-party finance and insurance products.
- As of September 30, 2021, the company has a network of 112 outlets in 8 Indian states.
- The company has 61 sales showrooms and outlets and 51 after-sales services and spare stores across 31 cities in the country.
- Landmark presence in major cities of India includes Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal, and the National Capital Territory of Delhi.
Landmark Cars Limited Founders and Leadership team
The company is founded by Mr. Sanjay Karsandas Thakker. He holds over 41% of the total share in the company. He is the Chairman and Executive Director of the company.
Landmark Cars Limited Revenue and profits
Landmark Cars reported strong EBITDA and EBITDA margins from FY2020 to FY2022. The EBITDA from New vehicle sales has gone up from INR 14 million to INR 368 million during this period while the EBITDA margin has also gone up from 0.06% to 2.42%. The company has witnessed strong EBITDA margins from After-sales service and spare parts revenue as compared to New vehicle sales.
Total EBITDA of the company has gone up from INR 886.27 million in FY 2022 to INR 1200 million in FY 2022. EBITDA margins have also gone up from 3.13% to 6.11% during the same time.
Objects of the Issue
The company will not receive any amount from the OFS. However, the company will utilize the amount from fresh issues as below.
- Repayment/pre-payment, in full or in part, of certain borrowings availed by our Company and Subsidiaries.
- General Corporate Purpose.
Landmark Cars IPO – Valuation Parameters
Landmark Cars Limited has been registering strong PAT over the years, particularly in FY2021 and FY2022. The revenue was down during the FY 2019 and 2020 due to the pandemic and subsequent lock down. The parameters such as the return on equity, ROCE, and net cash flow have improved over the years. Refer to the table below for all the details valuation parameters. Looking at the numbers below one can invest in the company’s IPO for listing gain.
Landmark Cars IPO Financials
| All amounts in INR Million (Year ended March 31) | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Total Asset | 10,080.33 | 8,317.67 | 8,878.95 | 10853.80 |
| Total Income | 28,346.16 | 22,289.33 | 19,663.43 | 29891.20 |
| Net Worth | 1879.6 | 1691.2 | 1817.8 | 2469.4 |
| Total Borrowing | 4787.8 | 3579.1 | 3274.4 | 3084.9 |
| Profit After Tax | (244.28) | (289.39) | 111.48 | 661.8 |
| Earnings Per equity Share-Diluted | (7.00) | (7.84) | 3.05 | |
| Net Cash from Operating Activities | 548.85 | 2,096.60 | 427.64 | |
| Debt/Equity Ratio (%) | 2.35 | 1.92 | 1.68 | 1.6 |
| RoE % | (12.93) | (17.03) | 6.11 | |
| ROCE (%) | 3.19 | 1.07 | 8.59 |
Landmark Cars IPO: Do you invest?
- Landmark Cars Limited is one of the leading luxury automotive retailers in India that sells branded and premium vehicles.
- The premium segment of the automotive industry is to grow at a CAGR of 10-12% CAGR from Fiscal 2021 to Fiscal 2026.
- The luxury segment is expected to grow at a CAGR of 20-22% during the same period.
- The company is the number one dealer in India by sales volumes of new vehicles of premium vehicles such as Mercedes-Benz, Honda, Volkswagen, and Stellantis.
- Further, the Indian economy is expected to do better across the world with 7% GDP growth in FY2023, while GDP growth may be up in the next two years.
- The growth in the industry will further drive revenue for the company.
- I would like to invest in the IPO both for listing gain as well as long term.
Landmark Cars IPO Details
| Landmark Cars IPO Details | Details |
|---|---|
| Landmark Cars IPO Date | Dec 13, 2022 to Dec 15, 2022 |
| Landmark Cars IPO Price band | ₹481 to ₹506 per share |
| Landmark Cars IPO Allotment date | Dec 20, 2022 |
| Refunds Initiation date | Dec 21, 2022 |
| Credit of Shares to Demat Account | Dec 22, 2022 |
| Listing Date | Dec 23, 2022 |
| Fresh Issue | 2,964,427 shares of ₹5 (Aggregating up to ₹150.00 Cr) |
| Offer for Sale | 7,944,664 shares of ₹5 (Aggregating up to ₹402.00 Cr) |
| Equity Shares outstanding prior to the Offer | 36,625,620 Equity Shares |
| Maximum bid (lot size) For retail investor | 377 lot size Total investment of ₹190,762 |
| Minimum bid (lot size) For retail investor | 29 lot size Total investment of ₹14,674 |
| Face Value | ₹ 5 per share |
| Listing on | BSE & NSE |
Landmark Cars IPO GMP
| Date | Landmark Cars IPO GMP | IPO Price |
| 08-12-2022 | INR 52 | INR 506 |
| 14-12-2022 | INR -8 | |
Landmark Cars IPO Allotment Status
Landmark Cars IPO allotment status will be available on Link intime Limited website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to E-mail: Signatureglobal.ipo@linkintime.co.in, Tel: +91 22 4918 6200.
Landmark Cars IPO Lead Managers and Corporate Contacts
| Contact Details | Lead Managers |
| Unit No. 201 to 203, Landmark, 2nd Floor, G. M. Bhosale Marg, Worli, Mumbai 400 018, Maharashtra, India Telephone: +91 22 6271 9040; E-mail: companysecretary@landmarkindia.net http://www.grouplandmark.in/ | 1. ICICI Securities Limited 2. Axis Capital Limited |
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