Shares of Landmark Cars made their market debut on Friday with the stock listing at ₹471 apiece on the NSE, a discount of more than 7% as compared to its IPO issue price of ₹506 per share. On the BSE, Landmark Cars shares started trading at ₹471 apiece.
“The company is growing its presence in the after-sales segment. Its comprehensive business model captures the entire customer value chain and focuses on the expansion of its overall business with experienced promoters and business leadership. Nonetheless, despite fierce competition, the company must reduce its debt. The issue has been fully priced, with a P/E ratio of around 28. Under the current market conditions, it would not be fair to expect much from its listing. As a result, allottees who applied for the public offering for listing premium should keep their stop loss at Rs. 440,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
The Initial Public Offer (IPO) of automobile dealership chain Landmark Cars got subscribed 3.06 times on the last day of subscription on Thursday, helped by huge interest from institutional buyers. The initial share sale received bids for 2,46,45,186 shares against 80,41,805 shares on offer.
The category meant for Qualified Institutional Buyers (QIBs) was subscribed 8.71 times, non-institutional investors received 1.32 times subscription and Retail Individual Investors (RIIs) 59%.
It had a fresh issue of up to ₹150 crore and an offer for sale of up to ₹402 crore, aggregating up to ₹552 crore. Those selling shares through the OFS route were TPG Growth II SF PTE Ltd, Sanjay Karsandas Thakker HUF, Aastha Limited and Garima Misra.
The company’s public offer had a price range of ₹481-506 a share. Proceeds from fresh issuance will be utilised for payment of debt and general corporate purposes.
TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.
As of June 30, 2022, the company has expanded its network to include 112 outlets in 8 Indian states and union territories, comprised of 59 sales showrooms and outlets and 53 after-sales services and spare outlets.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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