PremiumLandmark Cars IPO: Landmark Cars' Initial Public Offer (IPO) received 3.06 times its final subscription on Thursday, thanks in substantial portion to the intense appetite of qualified institutional buyers (QIBs), who were followed by employees and non-institutional investors. According to NSE statistics, the IPO got bids for 2,46,45,186 of the 80,41,805 shares that were offered. Retail individual investors (RIIs) received a subscription rate of 59%, followed by non-institutional investors (1.32 times) and qualified institutional buyers (8.71 times) in the segment allocated for QIBs.
The company's IPO is a combination of a fresh issue worth ₹150 crore and an offer for sale (OFS) of up to ₹402 crore. Selling shareholders in the OFS are -- TPG Growth II SF, Aastha Limited, Sanjay Karsandas Thakker HUF, and Garima Misra. The price band for the IPO is fixed at ₹481 per share and ₹506 per share at a face value of ₹5 each. From the total IPO, 50% of the IPO size will be reserved for QIBs, while 35% will be kept for retail investors and 15% will be allotted to NIIs.
Landmark Cars plans to use the proceeds from the fresh issue for pre-payment of borrowings availed by its subsidiaries and general corporate purposes.
Landmark Cars is is among the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company has a commercial vehicle dealership with Ashok Leyland in India.
The company's 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 finance and insurance products.
By end of the June 2022 quarter, 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.
After the IPO launch, the equity shares will be listed on the stock exchanges BSE and NSE.
With the latest GMP of ₹10, the possible listing price for Landmark Cars may come to around ₹516 per equity share ( ₹10 plus ₹506 per share). Generally, a grey market is where a company's shares are offered unofficially to traders and hence they are not Sebi-regulated. A GMP does give a fair understanding of how a stock will be listed, however, there is no guarantee of the accuracy.