New Delhi: Automobile dealership chain Landmark Cars Ltd has filed preliminary prospectus with capital markets regulator Sebi to raise Rs 762 crore through an initial public offering. The public 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, according to the Draft Red Herring Prospectus (DRHP).
The OFS comprises sale of shares worth 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 Initial Public Offering (IPO) also includes a reservation for subscription by eligible employees. Proceeds from its fresh issuance worth Rs 120 crore will be utilised for payment of debt and general corporate purposes.
TPG-backed Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.
Landmark Cars, otherwise known as Group Landmark has a presence across the automotive retail value chain, which includes sales of new vehicles, after-sales service and repairs, including sales of spare parts, lubricants and accessories, and sales of pre-owned passenger vehicles.
In FY21, Landmark dealerships sold 1,133 vehicles for Mercedes and more than 4,000 vehicles for Honda and Renault. Overall, the company has sold over 1.3 lakh 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 and Delhi-NCR.
Landmark Cars recorded a profit of Rs 11.15 crore and total income of Rs 1,966.34 crore in FY21. It clocked a profit of Rs 27.95 crore and revenue of Rs 1,419.79 crore in the six months ended September 2021.
Axis Capital and ICICI Securities are the book running lead managers to the issue.
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TPG-backed Landmark Cars is India’s biggest seller of premium vehicles of automakers Mercedes Benz, Volkswagen, Honda and Fiat Chrysler. It may be amongst the first automotive dealership companies in India to float an IPO. It is also the first automotive dealership company to receive private equity investment.
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