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Landmark Cars Limited IPO Company Profile:

Landmark Cars Limited is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault, it also caters to the commercial vehicle retail business of Ashok Leyland in India. The company has a presence across the automotive retail value chain, including sales of new vehicles, after-sales service, repairs, pre-owned passenger vehicles, and facilitation of third-party finance and insurance products.

Landmark Cars Limited started its operations and opened its first dealership for Honda in CY1998, and since then has expanded its network to include 112 outlets in 8 Indian states, comprised of 61 sales showrooms and outlets and 51 after-sales services and spares outlets, as of September 30, 2021. The company is focused on the premium and luxury automotive segments. CRISIL Research expects the premium segment to grow at a CAGR of 10-12% CAGR from Fiscal 2021 to Fiscal 2026, while the luxury segment is expected to grow at a CAGR of 20-22% during the same period.

Landmark Cars Limited was the number one dealer in India by sales volumes of new vehicles for Mercedes-Benz(in Fiscal 2021), Honda (in Fiscal 2021), Volkswagen (in CY 2020), and Stellantis (Jeep) (in Fiscal 2021), and was the third largest dealer by sales volume for Renault (in CY2020).

As an Expansion plan into Pure EV Sales, Landmark Cars Limited has signed a letter of intent with the automaker BYD, a leading player in the global EV market, for the Company to be their dealer in Mumbai and the National Capital Region (Delhi) in respect of their electric passenger vehicles.

Landmark Cars Limited IPO Details:


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    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹5 per share
    Price Not Available
    Lot Size Not Available
    Issue Size [●] shares

    (aggregating up to ₹762.00 Cr)

    Fresh Issue [●] shares

    (aggregating up to ₹150.00 Cr)

    Offer for Sale [●] shares

    (aggregating up to ₹612.00 Cr)

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Company Promoters Sanjay Karsandas Thakker

    Landmark Cars Limited IPO Revenue from operations:

    Segment 6M FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) % FY-19(in cr.) % CAGR
    Sale of cars 1142.99 80.90% 1480.34 75.68% 1686.88 76.03% 2295.16 81.20% -13.6%
    Sale of spares, lubricants and others 164.37 11.63% 290.67 14.86% 336.09 15.15% 329.85 11.67% -4.1%
    Sale of services 78.65 5.57% 132.28 6.76% 144.55 6.52% 130.37 4.61% 0.5%
    Revenue from sale of products and services 1386.01 98.10% 1903.30 97.30% 2167.52 97.70% 2755.37 97.48% -11.6%
    Other operating revenues 26.83 1.90% 52.81 2.70% 51.10 2.30% 71.14 2.52% -9.5%
    Total 1412.84 100.00% 1956.10 100.00% 2218.61 100.00% 2826.52 100.00% -11.5%

    Landmark Cars Limited IPO Financial analysis:

    Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR
    Revenue from sale 1412.84 1956.10 2218.61 2826.52 -11.5%
    Other Income 6.95 10.24 10.32 8.10  
    Cost Of Goods Sold 1221.36 1647.37 1894.88 2462.53  
    Employee Cost 67.46 107.67 136.74 152.26
    Other expenses 53.32 91.24 114.12 131.19
    EBITDA 77.65 120.06 83.19 88.63 10.6%
    EBITDA margin% 5.50% 6.14% 3.75% 3.14%  
    Depreciation 31.10 62.48 62.95 53.42
    Interest 18.22 37.81 44.89 52.76 -10.5%
    Profit/Loss before tax 28.33 19.78 -24.64 -17.55  
    Total tax 0.39 8.63 4.30 6.88
    Profit/Loss after tax 27.95 11.15 -28.94 -24.43  
    Dep./revenue% 2.20% 3.19% 2.84% 1.89%
    Int./revenue% 1.29% 1.93% 2.02% 1.87%

    Pre-Offer shareholding of the Selling Shareholders:

    S. No. Name of the Selling Shareholder Number of Equity Shares held on a fully diluted basis Percentage of equity share capital on a fully diluted basis (%)
    1. TPG Growth 10,879,194 29.70%
    2. Sanjay Karsandas Thakker HUF 757,722 2.07%
    3. Aastha Limited 1,462,448 3.99%
    4. Garima Misra 1,012,012 2.76%
    Total   14,111,376 38.52%

    Landmark Cars Limited IPO Offer for Sale Details:

    S. No. Name of the Selling Shareholder Offered Shares in (₹ crores)
    1. TPG Growth Up to ₹ 400 crores
    2. Sanjay Karsandas Thakker HUF Up to ₹ 62 crores
    3. Aastha Limited Up to ₹ 120 crores
    4. Garima Misra Up to ₹ 30 crores

    Landmark Cars Limited IPO Strengths:

    • Landmark Cars Limited’s longstanding relationships with its partners and its market leadership positions offer the company several competitive advantages like sharing infrastructure and manpower across brands to increase margins; attracting suitable inorganic dealership acquisition targets (with the support of the OEMs); opportunities to expand across the business verticals like after-sales service, sales of pre-owned vehicles and sales of financial and insurance products; attracting talented sales and technical personnel; executing large scale marketing and advertising campaigns, and centralizing certain backend and support functions all of which leads to economies of scale and margin improvement.

    • Landmark Cars Limited’s after-sales service and spares business provides a stable revenue stream and contributes to higher-margin revenues at each of its dealerships, which helps mitigate the cyclicality that has historically impacted some players of the automotive sector.

    • Landmark Cars Limited’s OEMs offer manufacturers’ warranties and maintenance programs packaged with vehicle sales and, generally, only permit warranty work to be performed at their authorized service centers such as the company’s. This creates a barrier to entry for new competitors.

    • Despite a decline in revenues from operations between Fiscal 2019 and Fiscal 2021, in line with industry trends, the operations of the company continued to be profitable during this period

     

    Landmark Cars Limited IPO Risk factors:

    • The decision by any of Landmark Cars Limited’s OEMs not to renew, terminate or require adverse material modifications to any of the dealership or agency agreements entered into with them could have a material and adverse effect on the business, results of operations, and financial condition. In particular, Mercedes-Benz has required that the company restructure its dealership arrangement with them to an agency model. The company can make no assurances that its business, results of operations, and financial condition will not be adversely affected by this change.

    • Landmark Cars Limited’s investments in building its pre-owned vehicle business and establishing a new electric passenger dealership with BYD may not be successful and maybe loss-making.

    • A large portion of Landmark Cars Limited’s business operations are concentrated in the states of Gujarat and Maharashtra, and any adverse developments in these states could have an adverse effect on the business, results of operations, and financial condition of the company.

    • Landmark Cars Limited is subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of the dealership or agency agreements that may adversely impact the business, results of operations, financial condition, and prospects, including its ability to expand into new territories and acquire additional dealerships.

    Objects of the Offer:

    Landmark Cars Limited proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

    • Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company and Subsidiaries; and
    • General corporate purposes.

    Landmark Cars Limited IPO Prospectus:

    Registrar to the offer:

    Link Intime India Private Limited

    C-101, 1st Floor, 247 Park

    L.B.S. Marg, Vikhroli West

    Mumbai – 400 083, Maharashtra

    Phone: +91 22 4918 6200

    Email: landmark.ipo@linkintime.co.in

    Website: www.linkintime.co.in

     

     

    Landmark Cars Limited IPO FAQ

    Ans. Landmark Cars Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The Landmark Cars Limited IPO listing date is <>.

    Ans. The minimum lot size for this upcoming IPO is <> shares.