Landmark Cars IPO: GMP, Issue Price, Issue size & Important Dates

Landmark Cars IPO is all set to debut in the indian stock market on 13 December 2022 with an issue size of 552cr Rs and is a leading premium automotive retail business in India. 

Landmark Cars IPO Details 

Landmark Cars IPO Dates	13 – 15 December 2022
Landmark Cars IPO Price	INR 481 – 506 per share
Fresh issue	INR 150 crore
Offer For Sale	INR 402 crore
Total IPO size	INR 552 crore
Minimum bid (lot size)	29 shares (INR 14,674)
Face Value	INR 5 per share
Documents	RHP,DRHP
Retail Allocation	35%
Listing On	NSE, BSE

Landmark Cars IPO Tentative Dates 

Event	Tentative Date
Opening Date	Dec 13, 2022
Closing Date	Dec 15, 2022
Basis of Allotment	Dec 20, 2022
Initiation of Refunds	Dec 21, 2022
Credit of Shares to Demat	Dec 22, 2022
Listing Date	Dec 23, 2022

Landmark Cars IPO Industry Overview 

As retail inflation has slowed and G-sec yields have fallen, the yields in India’s auto finance category have been dropping during the last two to three years, according to the CRISIL Report. Auto finance rates have stayed low since the marginal cost of funds-based lending rate (MCLR) regime went into effect on April 1, 2016, since banks were compelled to pass on the advantages of a lower interest rate to end-users. This has decreased yields since Fiscal Year by 100 to 130 basis points. 

2015. However, interest rates have risen since since the RBI began raising the repo rate in May 2022. From May 2022 to August 2022, the average finance rate for two-wheelers and passenger cars climbed by 135 bps and 94 bps, respectively. 

Landmark Cars IPO Company Overview 

Landmark Cars Limited, a company founded in 1998, is the top premium car retailer in India and has dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The firm also serves Ashok Leyland’s Indian retail commercial vehicle industry. Sales of new cars, after-sales service and maintenance (including the sale of spare parts, lubricants, and accessories), sales of used passenger cars, and facilitation of the sale of third-party finance and insurance products are just a few of the services provided by Landmark Cars. As of September 30, 2021, the company’s network had grown to 112 outlets in 8 Indian states, including 61 sales showrooms and outlets and 51 after-sales services and spares stores. 

A total of 31 cities in eight states and a union territory, including Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal, and the National Capital Territory of Delhi, make up the Landmark Cars Limited vehicle dealership network. The business serves as a Mercedes-Benz, Honda, Volkswagen, Jeep, Renault, and Ashok Leyland authorised service centre. As of September 30, 2021, Landmark Cars additionally offered after-sales maintenance and repairs through 51 after-sales service and spare outlet locations. 

Landmark Cars Financial Statements 

Operational & Financial Ratios	2021	2020	2019	2018	2017
Earnings Per Share (Rs)	8.09	-0.10	2.73	20.43	7.25
CEPS(Rs)	8.42	4.19	3.71	14.53	6.79
DPS(Rs)	0.00	0.00	0.73	0.60	0.00
Book NAV/Share(Rs)	134.20	125.43	128.55	118.46	98.75
Tax Rate(%)	24.58	323.00	32.35	36.11	36.04
Margin Ratios
Core EBITDA Margin(%)	6.81	2.89	2.98	4.66	3.09
EBIT Margin(%)	5.43	1.63	2.43	4.30	2.86
Pre Tax Margin(%)	3.50	0.01	0.97	3.64	1.71
PAT Margin (%)	2.64	-0.03	0.65	2.33	1.09
Cash Profit Margin (%)	5.50	2.33	1.78	3.31	2.05
Performance Ratios
ROA(%)	3.10	-0.04	1.30	5.82	2.36
ROE(%)	6.23	-0.08	3.04	18.82	7.62
ROCE(%)	8.16	2.79	6.14	14.38	10.51
Asset Turnover(x)	1.17	1.39	1.99	2.50	2.16
Sales/Fixed Asset(x)	5.55	6.69	8.17	8.88	9.52
Working Capital/Sales(x)	-127.04	164.95	-38.75	-38.14	163.45
Efficiency Ratios
Fixed Capital/Sales(x)	0.18	0.15	0.12	0.11	0.11
Receivable days	9.71	7.92	7.32	5.57	9.74
Inventory Days	65.85	61.18	52.74	63.54	86.61
Payable days	24.70	17.59	13.16	11.82	52.74
Valuation Parameters
PER(x)	0.00	0.00	0.00	0.00	0.00
PCE(x)	0.00	0.00	0.00	0.00	0.00
Price/Book(x)	0.00	0.00	0.00	0.00	0.00
Yield(%)
EV/Net Sales(x)	0.21	0.23	0.20	0.18	0.21
EV/Core EBITDA(x)	2.53	5.69	5.65	3.46	5.54
EV/EBIT(x)	3.87	13.91	8.26	4.25	7.39
EV/CE(x)	0.25	0.31	0.33	0.41	0.45
M Cap / Sales	0.00	0.00	0.00	0.00	0.00
Growth Ratio
Net Sales Growth(%)	-14.87	-13.92	10.01	32.51	-9.71
Core EBITDA Growth(%)	76.83	-3.39	-25.95	83.35	-16.39
EBIT Growth(%)	183.30	-42.28	-37.76	99.08	-24.54
PAT Growth(%)	8269.50	-103.63	-69.08	181.90	-34.99
EPS Growth(%)	8269.50	-103.63	-86.64	181.90	-89.16
Financial Stability Ratios
Total Debt/Equity(x)	0.43	0.66	0.62	1.41	1.43
Current Ratio(x)	0.98	1.02	0.91	0.91	1.02
Quick Ratio(x)	0.51	0.52	0.41	0.38	0.21
Interest Cover(x)	2.82	1.01	1.66	6.52	2.48
Total Debt/Mcap(x)

Landmark Cars IPO Objectives 

The funds fot the proceedings will be used for the following purposes: 

1. Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company and Subsidiaries. 

2. General corporate purposes. 

Landmark Cars LTD Strengths 

• Leading automotive dealership for major OEMs with a strong focus on high growth segments. 
• Growing presence in after-sales segment leading predictable growth in revenues and superior margins. 

Landmark Cars LTD Weaknesses 

• Reported a loss in Fiscal 2020 and may incur additional losses in the future. 
• Its business operations are heavily focused in the states of Gujarat and Maharashtra, therefore any unfavourable events in these states could have a negative impact on their operations. 

Company Contact Information

Landmark Cars Limited
Landmark House, Opp. AEC, S.G. Highway,
Thaltej, Near Gurudwara,
Ahmedabad 380 059,
Phone: +91 79 6618 5555
Email: companysecretary@landmarkindia.net
Website: https://www.grouplandmark.in/

Landmark Cars IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: landmark.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Landmark Cars IPO Lead Manager(s)

1. Axis Capital Limited (Past IPO Performance)
2. ICICI Securities Limited (Past IPO Performance)