Landmark Vehicles IPO Overview: Landmark Vehicles Restricted is ready to drive its method into the Indian inventory exchanges. The IPO of Landmark Vehicles Restricted will open for subscription on December thirteenth, 2022, and shut on December fifteenth, 2022. It’s seeking to increase Rs 552 Crores, of which Rs 150 Crores shall be a recent situation and the remaining Rs 402 Crores shall be an Provide for Sale. On this article, we’ll take a look at the Landmark Vehicles IPO Overview 2022 and analyze its strengths and weaknesses. Preserve studying to search out out!
Landmark Vehicles IPO Overview – About The Firm
Landmark Vehicles Restricted, included in 1998, is a number one premium automotive retail enterprise in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. Along with that, the corporate additionally caters to the business automobile retail enterprise of Ashok Leyland in India.
The corporate stands because the primary vendor of Mercedes-Benz, Honda, and Stellantis (Jeep) by way of gross sales quantity within the Fiscal 12 months 2021. As well as, it stood because the third-largest vendor of Renault in 2020.
The corporate additionally gives after-sales companies and has approved service facilities for Mercedes-Benz, Honda, Volkswagen, Jeep, Renault, and Ashok Leyland.
The corporate caters to the whole buyer worth chain together with retailing new autos, servicing and repairing autos, promoting spare elements, lubricants, and different merchandise, promoting pre-owned passenger autos, and distributing third-party finance and insurance coverage merchandise.
It has a dealership community is unfold throughout 31 cities in eight states and union territories together with Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal, and the Nationwide Capital Territory of Delhi.
The rivals of the corporate
There aren’t any listed entities in India whose enterprise portfolio is comparable with that of the corporate’s enterprise.
Landmark Vehicles IPO Overview – Monetary Highlights
(Supply: DRHP of the corporate)
Landmark Vehicles IPO Overview – Trade Overview
The Indian passenger automobile trade could be broadly labeled into three principal segments, specifically, mass market autos, premium autos, and luxurious autos.
In response to the CRISIL Report, in Fiscal 2016, mass-market autos dominated the Indian premium autos (PV) trade with greater than 60% market share. Within the final 5 years, the premium autos phase has grown at a wholesome 8% CAGR, increasing its contribution from 38% in Fiscal 2016 to 56% in Fiscal 2021.
Then again, mass-market automobile gross sales contracted at a CAGR of seven%, with its market share lowering from 62% in Fiscal 2016 to 44% in Fiscal 2021.
Mercedes-Benz continues to dominate the posh automobiles market lately. In Fiscal 2021, Mercedes Benz has a 44% market share within the Indian luxurious autos phase, adopted by BMW with a 36% market share, in worth phrases, in response to the CRISIL Report. The ultra-luxury manufacturers like Ferrari, Rolls Royce, and Lamborghini type an insignificant a part of this general market.
The premium vehicle phase is predicted to develop at a CAGR of 10-12% from Fiscal 2021 to Fiscal 2026, whereas the posh phase is predicted to develop at a CAGR of 20-22% throughout the identical interval, in response to CRISIL Analysis report.
Strengths
It’s a main automotive vendor for main OEMs with a robust deal with high-growth segments in India.
The corporate is quickly rising its after-sales enterprise which is ready to extend its income and revenue margins.
The corporate has a complete enterprise mannequin capturing the whole buyer worth chain.
The corporate is technologically superior which helps them in decreasing prices and growing effectivity and thus enhancing margins.
The corporate is ready to foray into the quickly increasing Electrical Automobile (EV) market.
Weaknesses
The corporate is topic to the affect or restrictions imposed by any of the OEMs by way of dealership or company agreements which can have an effect on their operations.
The enterprise of the corporate is delicate to elements similar to the speed of inflation, and forex change charges.
The corporate operates in a aggressive panorama. Thus, the growing participation of corporations by way of on-line and offline advertising and marketing can have an effect on their enterprise.
The corporate has been making losses for the final two years.
The auto trade is ready to expertise fast modifications within the subsequent few years as there shall be a rise in ridesharing/hailing companies, advances in electrical automobile manufacturing, and driverless expertise which could hinder the operations of the corporate, if not tailored to such modifications.
Landmark Vehicles IPO Overview – GMP
The shares of Landmark Vehicles Restricted traded at a premium of 5.93% within the gray market on December twelfth, 2022. The shares tarded at Rs 536. This offers it a premium of Rs 30 per share over the cap worth of Rs 506.
Landmark Vehicles IPO Overview – Key IPO Data
Promoters: Sanjay Karsandas Thakker
Ebook Operating Lead Managers: Axis Capital Restricted and ICICI Securities Restricted.
Registrar To The Provide: Hyperlink Intime India Non-public Restricted
ParticularsDetails
IPO Dimension₹552 Crore
Recent Concern₹150 Crore
Provide for Sale (OFS)₹402 Crore
Opening dateDecember 13, 2022
Closing dateDecember 15, 2022
Face Worth₹5 per share
Value Band₹481 to ₹506 per share
Lot Size29 Shares
Minimal Lot Size1 (29 Shares)
Most Lot Size13 (377 Shares)
Itemizing DateDecember 23, 2022
The Goal of the Concern
The Internet Proceeds from the Recent Concern are proposed to be utilized:
Compensation/pre-payment, in full or partially, of sure borrowings availed by the Firm
Basic company functions
In Closing
On this article, we seemed on the particulars of Landmark Vehicles IPO Overview 2022. Analysts stay divided on the IPO and its potential good points. It is a good alternative for traders to look into the corporate and analyze its strengths and weaknesses. That’s it for this submit.
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