Luxury Auto Dealer Landmark plans Rs 762-cr IPO

We sell Mercedes, too!

Luxury Auto Dealer Landmark plans Rs 762-cr IPO

Sells Mercedes-Benz, Honda, Stellantis, Volkswagen & Renault

Rating agency CRISIL says premium segment will record a CAGR of 10-12%

MUMBAI, Jan 20 (The CIONNECT) - Premium automotive retailer Ahmedabad-based Landmark Cars Ltd, has filed its draft red herring prospectus (DRHP) with SEBI for Rs 762 crore initial public offering (IPO).

The issue consists of a fresh issue of equity shares aggregating to Rs 150 crore and an offer for sale (OFS) of up to Rs 612 crore.

The Offer for Sale comprises up to Rs 400 crore by TPG Growth II SF PTE Ltd, up to Rs 62 crore by Sanjay Karsandas Thakker HUF, up to Rs 120 crore by Aastha Limited and up to Rs 30 crore by Garima Misra. The offer also includes a reservation for subscription by eligible employees. Axis Capital Limited and ICICI Securities Limited are the Book Running Lead Managers and Link Intime India Private Limited is the registrar to the Issue.

The proceeds from its fresh issuance worth Rs. 120 crores will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and general corporate purposes.

Landmark Cars, otherwise known as Group Landmark has a presence across the automotive retail value chain, which includes sale of new passenger as well as commercial vehicles, after-sales service and repairs, lubricants and accessories and sales of pre-owned passenger vehicles. As a value add-on to its passenger vehicle sales, it also facilitates sale of third-party financial products including insurance policies and vehicle finance through its dealerships.

Landmark was the number one dealer for Mercedes-Benz, Honda, Stellantis (Jeep) in fiscal 2021, and Volkswagen and Renault in calendar year 2020. In FY21 Landmark dealerships have sold 1,133 vehicles for Mercedes and more than 4000 vehicles for Honda and Renault. Overall, the company has sold above 1,30,000 Cars across all the brands it caters too.  Additionally, the company has recently forayed into a partnership with global EV giant BYD to sell its MP6 Electric Vehicle in Mumbai & Delhi NCR.

Landmark Cars recorded a profit of Rs 11.15 crore on total income of Rs 1,966.34 crore for FY21, and clocked a profit of Rs 27.95 crore on revenue of Rs 1419.79 crore for the six month ended September 2021.

Rating agency CRISIL expects the premium segment to grow at a CAGR of 10-12% from Fiscal 2021 to Fiscal 2026, while the luxury segment is expected to grow at a CAGR of 20-22% during the same period, driven by moderate macroeconomic growth, increasing urbanization, increasing disposable income, relatively stable costs of PVs, and improved availability of auto finance. However, it could get impacted by subsequent waves of the COVID-19 pandemic resulting in any localised or extended lockdowns and overall industry sales.  

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