Vroom! Landmark Cars IPO Subscribed Thrice Over

Vroom! Landmark Cars IPO Subscribed Thrice Over

QIB, Employee Segments Get Overwhelming Response

Landmark Cars’ revenue from operations grew 52.17% to Rs 2976.52 crore for the fiscal 2022.

MUMBAI, Dec 15 (The CONNECT) – The IPO of premium automotive dealer Landmark Cars Limited, was subscribed 3.06 times on the final day of the issue today.

The company received bids of 2,46,45,186 shares against the offered 80,41,805 equity shares at a price band of ₹481-506.

Qualified Institutional Buyer Portion was subscribed the most with 8.71 times followed by Employee portion that was subscribed 2.93 times. The reserved portion for Non-Institutional was subscribed 1.32 times. Retail portion was subscribed 0.59 times.

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.

Landmark Cars, otherwise known as Group Landmark, has a presence across the automotive retail value chain, which includes sale of new vehicles (passenger as well as commercial), after-sales service and repairs (including sales of spare parts, lubricants and accessories), 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.

According to new vehicle sales, it is 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 4,000 vehicles for Honda and Renault. Overall, the company has sold above 13,000 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 E6 Electric Vehicle in Mumbai & Delhi NCR.

Led by Sanjay Thakker, Chairman & Founder, who started the operations and opened the first dealership for Honda at Ahmedabad in the year 1998, and later expanded its network to about 112 outlets in 8 Indian states, comprising of in excess of 59 sales showrooms and outlets and more than 53 after-sales service and spares outlets, with a focus on the premium and luxury automotive segments.

The company’s business processes include monitoring and adapting to trends in customer preferences by managing its inventory and diversifying its portfolio and to facilitates its customers who use their websites to track their vehicle maintenance schedules and reach out to for any complaints or queries. In addition, to the websites, it has also launched a chatbot on a leading instant messaging application to resolve customer queries and to book after-sales service appointments.

Landmark Cars’ revenue from operations grew 52.17% to Rs 2976.52 crore for the fiscal 2022 against Rs 1956.10 crore for the same period last year, whereas Profit after tax increased 493.54% to Rs 66.18 crore for the year ending March 2022 over Rs 11.15 crore for the year ending March 2021.

For the three months ended 30 June 2022, it recorded a profit of Rs 18.14 crore on revenue of Rs 800.27 crore.

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