Landmark Cars Share 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 company’s Rs 552-crore IPO was sold in the range of Rs 481-506 per share, and received a mild response from investors, garnering over 3 times bids.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 8.71 times while those reserved for non-institutional investors (NIIs), employees and retailers were subscribed 1.6 times, 2.93 times and 59%, respectively.
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.
What Should Investors Do?
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., said: “Landmark Cars has debuted as a negative listing at a discount of Rs. 471 (-6.91%) to its issue price. But the issue had received a good response from investors on both the institutional and retail sides. The company is also growing its presence in the after-sales segment. Its comprehensive business model captures the entire customer value chain and focuses on the expansion of its overall business with experienced promoters and business leadership. Nonetheless, despite fierce competition, the company must reduce its debt. 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.”
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