Landmark Cars makes weak market debut, lists at 7% discount over issue price

Shares of Landmark Cars made a muted market debut on Friday. Landmark Cars got listed at Rs 471.30, a discount of 6.86 per cent over its issue price of Rs 506 on BSE. On NSE, the scrip was listed at Rs 471, a discount of 6.92 per cent.

The IPO was sold from December 13 to December 15 and comprised a fresh issue of shares up to Rs 150 crore and an offer for sale of up to Rs 402 crore, aggregating Rs 552 crore.

The IPO was subscribed 3.30 times. The initial share sale received bids of over 2.46 crore (2,46,45,911) shares against the total issue size of over 80.41 lakh (80,41,805) shares.

Also Read | Abans Holdings shares plunge 24% after tepid listing

The portion allotted for the qualified institutional buyers (QIBs) was subscribed 8.71 times, while that for non-institutional investors was subscribed 1.32 times and that of retail individual investors (RIIs) was subscribed just 59 per cent. Separately, the employees’ portion was subscribed 2.93 times, BSE data showed.

TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Axis Capital and ICICI Securities were the book-running lead managers to the issue.

The company reported a loss of Rs 28.93 crore in fiscal 2020.

Post listing view:

“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 at Swastika Investmart.

Also Read | Radiant Cash Management Services IPO opens today: Should you subscribe or give it a miss?