Landmark Cars
Mainboard₹552 Cr issue
-6.86%
Listing gain over issue price
Issue size
₹552 Cr
1 lot at cut-off
₹14,674
Lot size
29shares
Open
13 Dec 2022
Close
15 Dec 2022
Allotment
20 Dec 2022
Listing
23 Dec 2022
Listing performance
Issue price
₹506
Listed at
₹471.30
Listing-day close
₹460.05
Latest price
₹418
Close on 23 Oct 2026
Listing gain
-6.86%
Return since issue
-17.39%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2022 – 15 Dec 2022
- Listing date
- 23 Dec 2022
- Face value
- ₹5 per share
- Issue price
- ₹506 per share
- Lot size
- 29 shares
- Total issue size
- ₹552 Cr
- Market cap at offer price
- ₹2,003 Cr
- Promoter holding
- 60.24% → 44.61% pre-issue → post-issue
- ISIN
- INE559R01029
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Landmark House, Opp.AEC, S.G.Highway, Thaltej, Near Gurudwara, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 32,66,797 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 29 shares per lot, in multiples, at ₹506
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 29 | ₹14,674 |
| Retail (max) | 13 | 377 | ₹1,90,762 |
| S-HNI (min) | 14 | 406 | ₹2,05,436 |
| S-HNI (max) | 68 | 1,972 | ₹9,97,832 |
| B-HNI (min) | 69 | 2,001 | ₹10,12,506 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
32,66,797
Anchor portion
₹165 Cr
at ₹506 per share
Valuation and performance
Valuation at offer price
₹506 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 17.88 | — |
| P/E (×) | 28.30 | — |
| Market cap | — | ₹2,003 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 26.52%
- ROCE
- 18.86%
- PAT margin
- 2.22%
- EBITDA margin
- 6.27%
- NAV per share
- ₹67.42
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Landmark Cars
Landmark Cars Limited, incorporated in 2006 and converted to a public company in 2021, operates as a premium automotive retail business with a network of 112 outlets across 8 Indian states and union territories (59 sales showrooms and 53 after-sales service centers as of June 30, 2022). The company generates revenue from four primary sources: sales of new vehicles, after-sales services and spare parts, sales of pre-owned vehicles, and facilitation of third-party financial and insurance products. The company operates dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault for passenger vehicles, as well as Ashok Leyland for commercial vehicles, and has recently entered the electric vehicle segment with BYD. Revenue from new vehicle sales typically comprises 65-75% of total revenue for passenger vehicle dealers, while service segment revenue is expected to expand due to technical complexity of modern vehicles requiring organized dealership support.
Company Analysis
from RHPLandmark Cars Limited is a leading premium automotive retail business in India, operating dealerships across new vehicle sales, after-sales service, pre-owned vehicle sales, and financial products facilitation for multiple OEM brands including Mercedes-Benz, Honda, Jeep, Volkswagen, Renault, and Ashok Leyland.
Landmark Cars Limited, incorporated in 2006 and converted to a public company in 2021, operates as a premium automotive retail business with a network of 112 outlets across 8 Indian states and union territories (59 sales showrooms and 53 after-sales service centers as of June 30, 2022). The company generates revenue from four primary sources: sales of new vehicles, after-sales services and spare parts, sales of pre-owned vehicles, and facilitation of third-party financial and insurance products. The company operates dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault for passenger vehicles, as well as Ashok Leyland for commercial vehicles, and has recently entered the electric vehicle segment with BYD. Revenue from new vehicle sales typically comprises 65-75% of total revenue for passenger vehicle dealers, while service segment revenue is expected to expand due to technical complexity of modern vehicles requiring organized dealership support.
Automotive retail - premium and luxury segmentAutomotive retail - commercial vehiclesAfter-sales automotive servicesAutomotive spare parts distributionPre-owned vehicle sales
Objects of the Issue
- Pre-payment, in full or in part, of borrowings availed by our Subsidiaries ₹1,200.00 million p.23
- General corporate purposes p.23
- Objects of the Offer (specific uses not detailed in this section) p.54
- Pre-payment, in full or in part, of borrowings availed by our Subsidiaries ₹1,200.00 million p.135
- General corporate purposes p.135
Issue Structure
- Total Issue
- ₹5,520.00 million
- Fresh Issue
- ₹1,500.00 million
- Offer for Sale
- ₹4,020.00 million (comprising ₹3,250.00 million by TPG Growth II SF PTE. LTD., ₹100.00 million by Sanjay Karsandas Thakker HUF, ₹620.00 million by Aastha Limited, and ₹50.00 million by Garima Misra)
- Face Value
- ₹5 per Equity Share
Business Model
Revenue generation through: (1) new vehicle sales (comprising 75.77% of revenue in Q1 FY2023), where the company purchases vehicles from OEMs and resells to customers; (2) after-sales service and spare parts sales (20.13% of revenue in Q1 FY2023); (3) commission income from financial and insurance products facilitation; and (4) pre-owned vehicle sales. Under the agency model with Mercedes-Benz (effective October 1, 2021), the company no longer purchases inventory but receives commission on sales facilitated directly by the OEM.
Business Segments
Sale of Mercedes-Benz vehicles through agency arrangement where company facilitates sales and provides after-sales service; changed from dealership to agency model effective October 1, 2021
Sale of Honda passenger vehicles and after-sales service
Sale of Jeep passenger vehicles and after-sales service
Sale of Volkswagen passenger vehicles and after-sales service
Sale of Renault passenger vehicles and after-sales service
Sale of Ashok Leyland commercial vehicles and after-sales service
Sale of BYD electric passenger vehicles (new segment)
Sale of pre-owned passenger vehicles
Sale of new passenger vehicles through authorized dealerships of brands including Mercedes-Benz, Honda, Volkswagen, Jeep, Renault, and others
Sale of new commercial vehicles and services for commercial vehicles through dealerships
Sale of pre-owned passenger vehicles leveraging company experience, technology and network
Provision of warranty work, customer paid work, running repairs, collision repair services and sale of spare parts and accessories through 53 after-sales service and spares outlets
Sales of new vehicles across multiple OEMs including Mercedes-Benz, Honda, Jeep, Volkswagen, Renault, Ashok Leyland and BYD, along with commission income from financial products and pre-owned vehicle sales
After-sales service, spare parts, lubricants, accessories sales and incentives and schemes from OEMs pertaining to after-sales revenue
Sale of new passenger and commercial vehicles through authorized dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, Renault and Ashok Leyland
Provision of warranty work, customer-paid repairs, collision repair services, and sale of spare parts, lubricants, accessories and other products through 53 authorized service centers
Purchase and sale of pre-owned vehicles through two models: commission-based facilitation through appointed agents and taking vehicles on company books for refurbishment and sale
Facilitation of third-party vehicle finance and insurance products through dealership partnerships with banks, NBFCs and insurance companies
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new passenger vehicles (Mercedes-Benz), used passenger vehicles and their spare parts and accessories
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new passenger vehicles (Honda), used passenger vehicles and their spare parts and accessories
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new passenger vehicles (Volkswagen), used passenger vehicles and their spare parts and accessories
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new commercial vehicles (Ashok Leyland) and their spare parts and accessories
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new passenger vehicles (Jeep), their spare parts and accessories and used passenger vehicles
buying, selling, marketing, repairing, servicing, maintaining and/or dealing in all kinds of new passenger vehicles (Renault), used passenger vehicles and their spare parts and accessories
BYD brand passenger cars for Delhi and Mumbai, Maharashtra location, sale of vehicle accessories and business of shared services
distribution of automobile care product and accessories under the brand name of MotorOne
Sale of new premium and luxury automobiles including Mercedes-Benz, Honda, Jeep, Volkswagen, Renault and BYD passenger vehicles, and Ashok Leyland commercial vehicles
Commission earned from facilitating sales of automobiles under agency agreements and other commission-based arrangements
After-sales service and repair of automobiles, and sale of spare parts, lubricants and accessories
Finance commission, insurance commission, pre-owned car commission, income from schemes and incentives, extended warranty and roadside assistance income
Sales of new passenger and commercial vehicles, pre-owned vehicles, commission income from Mercedes-Benz agency model, and commission income from distribution of insurance and vehicle finance products
After-sales services including repair and maintenance services, and sale of spare parts, lubricants and accessories
Operation of showrooms to buy and sell new and used automobiles of the Mercedes-Benz brand
Operation of workshops and garages to repair and service automobiles
Provision of financing activities related to automobiles
Insurance commission business in connection with automobile sales and servicing operations
SWOT Analysis
Strengths
- • Leading premium automotive retail business with established brand network(p.22)
- • Diversified revenue streams across sales, after-sales service, and pre-owned vehicles(p.22)
- • Significant geographic presence with growing network of outlets(p.22)
- • Strong recovery and profitability post-COVID with improved financial metrics(p.40)
- • Multi-brand dealership network with established OEM relationships(p.41)
- • Extensive geographic presence across 32 cities in 8 states/UTs(p.51)
- • Integrated after-sales service and spares business(p.41)
- • Improving attrition rate demonstrates stabilizing workforce(p.43)
- • Leading premium automotive dealership for major OEMs with strong presence in high-growth segments(p.149)
- • Predictable revenue from growing after-sales segment with superior margins(p.144)
- • High after-sales service and spares EBITDA contribution and margins(p.149)
- • Comprehensive business model capturing entire customer value-chain(p.144)
- • Profitability maintained despite industry downturn with improving EBITDA margins(p.149)
- • Expanded outlet network from 42 to 112 across multiple OEM brands(p.149)
- • Robust business processes leveraging technological innovation and digitalization(p.144)
- • Market leadership in premium and luxury automotive retail across major OEMs(p.191)
- • Stable, high-margin after-sales service and spares business providing predictable revenue(p.192)
- • Comprehensive integrated business model capturing entire customer value chain(p.192)
- • Focus on high-growth premium and luxury segments with strong growth trajectories(p.191)
- • Improved financial position and balance sheet strength over recent years(p.193)
- • Robust technology infrastructure and digital transformation capabilities(p.192)
- • Established multi-brand dealership network across key Indian states(p.269)
- • Diversified revenue streams across sales, services, and financial services(p.269)
- • Experienced promoter with over two decades in automobile industry(p.239)
- • Eight wholly-owned or majority-controlled subsidiary companies(p.231)
- • Leading premium automotive retail dealership with top market positions across multiple OEMs(p.329)
- • Extensive network across multiple states with integrated sales and after-sales service capabilities(p.329)
- • High-margin after-sales service business providing consistent revenue and profitability(p.332)
- • Strong profitability recovery post-COVID with improved margins and EBITDA(p.330)
- • Early-mover advantage in premium electric vehicle market with BYD partnership(p.332)
- • High capacity to finance inventory purchases(p.333)
- • Improved operational efficiency through cost optimization(p.334)
- • Complementary business verticals enabling synergies(p.334)
- • Well-established retail and merchant brands(p.334)
- • Multi-brand, multi-segment dealership presence(p.333)
- • Improved gross margins with agency model transition(p.355)
Weaknesses
- • High debt burden relative to EBITDA particularly in Q1 FY2023(p.32)
- • Significant geographic concentration with half of operations in Gujarat and Maharashtra(p.33)
- • Heavy dependence on a few OEM partners for majority of revenue(p.36)
- • Past history of losses and volatile profitability(p.31)
- • History of outlet closures due to lack of viability(p.40)
- • Heavy dependence on a limited number of OEMs(p.42)
- • OEM control over service pricing limits margin potential(p.41)
- • Regulatory closure of Delhi service centre affecting operations(p.43)
- • Lack of exclusive territorial rights from OEMs(p.41)
- • High debt burden with unsecured borrowings repayable on demand(p.45)
- • Significant capital expenditure requirements straining cash flow(p.44)
- • Promoter concentration with significant leverage on personal guarantees(p.49)
- • High financial leverage with net debt to EBITDA ratio of 7.92x as of June 30, 2022(p.146)
- • Significant concentration in inventory with 49 days inventory turnover(p.146)
- • Negative working capital position limiting financial flexibility(p.147)
- • Heavy dependence on few major OEM dealerships for revenue(p.148)
- • Return on equity declined significantly to 6.72% in Q1 FY2023 from 26.66% in FY2022(p.146)
- • Significant dependence on a few key OEM partners for revenue(p.189)
- • High leverage levels requiring debt servicing obligations(p.194)
- • Lease-dependent property portfolio with expiry and renewal risks(p.216)
- • Pre-owned vehicle business remains nascent and underdeveloped relative to new vehicle sales(p.179)
- • Limited geographic footprint concentrated in specific states(p.189)
- • High financial leverage with significant borrowing obligations(p.264)
- • Significant lease obligations requiring substantial cash outflows(p.264)
- • Reliance on vehicle floor plan payable suggesting inventory financing dependency(p.264)
- • Limited operational history of recent acquisitions (MOIPL acquired June 2022)(p.230)
- • Significant dependence on few major OEM partners for revenue generation(p.331)
- • High leverage with net debt to equity ratio of 1.56 as of June 30, 2022(p.299)
- • Working capital deficit with current liabilities exceeding current assets(p.302)
- • Geographic concentration risk with 8 states and union territories exposure(p.329)
- • Heavy reliance on fixed-cost service station infrastructure with long payback periods(p.332)
- • High working capital requirement from inventory purchases(p.333)
- • High debt burden with increased financial leverage(p.347)
- • Significant lease liability obligations(p.364)
- • High employee benefits expense as percentage of income(p.354)
- • Material litigation and contingent liabilities pending(p.365)
- • Significant pending fire safety and pollution consent approvals across multiple locations(p.392)
- • Multiple subsidiary locations lack required factory licenses and fire safety certifications(p.391)
- • Material Creditors represent significant debt concentration with 2 creditors owing ₹377.87 million of total payables(p.389)
Opportunities
- • Premium vehicle segment showing strong growth trajectory in India(p.22)
- • Expansion of service revenue as organized dealerships capture market share(p.22)
- • Growth in pre-owned vehicle market through strategic investments(p.38)
- • Electric vehicle market expansion with BYD dealership entry(p.38)
- • Expansion into high-growth segments and premium/luxury brands(p.41)
- • Growing pre-owned passenger vehicle business(p.41)
- • Electric vehicle segment entry via BYD dealership(p.42)
- • Digital transformation and technology investment(p.41)
- • Geographic expansion through strategic acquisitions(p.41)
- • Premium segment growth at 10-12% CAGR expected from FY2021 to FY2027(p.148)
- • Luxury vehicle segment expected to grow at 14-16% CAGR to reach 47,000-49,000 units by FY2027(p.165)
- • UV segment projected to grow at 12-14% CAGR and account for 58% of PV market by FY2027(p.165)
- • Electric vehicle market opportunity through BYD dealership in NCR and Mumbai(p.149)
- • Pre-owned vehicle market growing with increasing finance penetration expected to rise from 25-30% to 35-40% by FY2027(p.169)
- • Overall PV market expected to grow at 8-10% CAGR from 3.1 million units in FY2022 to 4.6-4.8 million units by FY2027(p.164)
- • Increasing demand for personal mobility continuing post-COVID with support from rising disposable incomes(p.165)
- • Significant growth potential in pre-owned vehicle segment with industry tailwinds(p.196)
- • Expansion of after-sales service business with technology integration(p.195)
- • Entry into high-growth electric vehicle segment(p.191)
- • Strategic acquisitions to expand geographic reach in premium and luxury brands(p.197)
- • Digitalization and omnichannel retail transformation as competitive advantage(p.196)
- • Rising financial penetration and consumer finance opportunities(p.171)
- • Expansion into electric vehicle segment with BYD partnership(p.269)
- • Growth in used car and pre-owned vehicle business via MotorOne(p.236)
- • Cross-selling opportunities across multi-brand dealership network(p.237)
- • Significant growth trajectory for luxury and premium segments at 14-16% CAGR(p.330)
- • Rising consumer preference for SUVs with higher margins(p.332)
- • Expanding EV market opportunity as infrastructure and technology mature(p.332)
- • Opportunity to expand after-sales service footprint and improve margins with growing car park(p.332)
- • Growing middle class and disposable income driving demand for premium automobiles(p.331)
- • Expansion in after-sales services and spare parts business(p.354)
- • Acquisition of Mercedes-Benz servicing network(p.364)
- • Expansion into electric vehicles segment(p.350)
- • Growth in commercial vehicle segment(p.350)
- • Recovering demand following COVID-19 pandemic(p.357)
- • Online and digital sales initiatives(p.334)
Threats
- • OEM dealership agreements may not be renewed or could be terminated on unfavorable terms(p.31)
- • Mercedes-Benz transition to agency model reducing inventory and profitability(p.37)
- • Automotive industry highly sensitive to macroeconomic conditions and external factors(p.38)
- • COVID-19 pandemic continues to pose uncertain and evolving risks(p.39)
- • Rising inflation driving increased operational costs(p.40)
- • Uncertainty around electric vehicle demand and infrastructure(p.38)
- • Intense competition from organized and unorganized dealerships(p.41)
- • Online retail platforms disintermediating traditional dealerships(p.42)
- • Shift in consumer preferences toward mobility services over vehicle ownership(p.42)
- • Reduced parts and service demand from electric vehicles(p.42)
- • OEM insolvency and financial distress concentration risk(p.43)
- • Regulatory changes and labor law reforms increasing compliance burden(p.55)
- • Natural disasters and climate-related business disruptions(p.45)
- • Seasonality in automobile demand affecting revenue stability(p.47)
- • Global economic slowdown and Indian macroeconomic pressures(p.55)
- • Heavy exposure to premium and luxury segments vulnerable to economic downturns and interest rate increases(p.148)
- • Declining market share of mass market segment from 57% in FY2017 to 37% in FY2022(p.159)
- • Rising auto finance interest rates with passenger vehicle rates increasing by 94 bps from May to August 2022(p.158)
- • Chip shortage and supply constraints affecting vehicle availability and production(p.168)
- • Dependency on OEM decisions for dealership allocations and business model changes(p.147)
- • Economic slowdown and inflation expected to dampen consumer demand in near term(p.164)
- • Competition from organized and digital pre-owned vehicle platforms consolidating market share(p.169)
- • Subject to significant restrictions and dependencies on OEM dealership agreements(p.29)
- • Intense competition from other dealership groups and online platforms(p.214)
- • COVID-19 pandemic impact on pre-owned luxury vehicle sales(p.170)
- • Dedicated Freight Corridor reducing demand for commercial vehicles(p.177)
- • Industry cyclicality and economic downturn risks(p.193)
- • Rising material and input costs driving inflation in vehicle prices(p.185)
- • Cyclicality and volatility in Indian automobile industry(p.59)
- • Dependence on OEM policies and brand performance(p.269)
- • Concentration risk with multiple brand dealerships at same locations(p.269)
- • Regulatory and compliance requirements for automotive dealership(p.245)
- • Vulnerability to macroeconomic cycles and consumer spending patterns in premium segment(p.331)
- • Ongoing COVID-19 pandemic risks and potential supply chain disruptions(p.330)
- • Volatility in global oil prices impacting demand for automobiles(p.331)
- • Regulatory changes including vehicle emission standards and environmental policies(p.331)
- • Interest rate and forex volatility affecting customer financing affordability(p.331)
- • Risk of OEM dealership and agency agreement terminations(p.331)
- • Highly competitive automotive retail market(p.334)
- • Competition from national and online platforms(p.334)
- • Semiconductor supply chain disruptions affecting OEM production(p.357)
- • Dependence on limited OEM partner agreements(p.333)
- • Seasonality of automobile demand affecting revenue(p.334)
- • Rising inflation and input costs(p.357)
- • Rising labor costs from wage inflation(p.334)
- • Lack of required environmental and fire safety approvals creates regulatory compliance risk(p.392)
- • Widespread non-compliance with shop and establishment licensing requirements across operations(p.391)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sanjay Karsandas Thakker | Promoter | 41.38% | — |
| Ami Sanjay Thakker | Promoter Group | 15.25% | — |
| Aryaman Sanjay Thakker | Promoter Group | 1.54% | — |
| Sanjay Karsandas Thakker HUF | Promoter Group/Selling Shareholder | 2.07% | — |
| Sanjay Karsandas Thakker | Promoter/Chairman and Executive Director | 41.38% | — |
| Aryaman Sanjay Thakker | Executive Director and member of the Promoter Group | 1.54% | — |
| Promoter and members of Promoter Group (aggregate) | Promoter Group | 60.24% | — |
| Sanjay Karsandas Thakker | Promoter | 41.38% | — |
| Ami Sanjay Thakker | Promoter Group | 15.25% | — |
| Aryaman Sanjay Thakker | Promoter Group | 1.54% | — |
| Sanjay Karsandas Thakker HUF | Promoter Group | 2.07% | — |
| Sanjay Karsandas Thakker | Promoter/Sponsor | — | — |
| Ami Sanjay Thakker | Promoter/Sponsor | — | — |
| TPG Growth | Investor/Promoter Group | — | — |
| Sanjay Karsandas Thakker | Promoter | 41.38% | — |
| Sanjay Karsandas Thakker | Promoter | 41.38% | — |
| Ami Sanjay Thakker | Promoter Group | 15.25% | — |
| TPG Growth II SF Pte. Ltd | Promoter Group | 29.70% | — |
| Sanjay Karsandas Thakker | Promoter/Sponsor 1 | — | — |
| Ami Sanjay Thakker | Promoter/Sponsor 2 | — | — |
| Sanjay Karsandas Thakker | Promoter | — | — |
| Ami Sanjay Thakker | Promoter | — | — |
| TPG Growth II SF Pte. Ltd. | Investor/Selling Shareholder | — | — |
Leadership
Sanjay Karsandas Thakker · Promoter/Executive Director
Aryaman Sanjay Thakker · Executive Director
Paras Somani · Executive Whole-Time Director
Surendra Kumar Agarwal · Chief Financial Officer
Amol Arvind Raje · Company Secretary and Compliance Officer
Gautam Yogendra Trivedi · Independent Director
Sucheta Nilesh Shah · Independent Director
Manish Balkishan Chokhani · Independent Director
Mahesh Pansukhlal Sarda · Independent Director
Akshay Tanna · Investor Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Landmark Cars IPO FAQs
What is the lot size of Landmark Cars IPO?
The minimum lot size of Landmark Cars IPO is 29 shares. One lot costs ₹14,674 at the cut-off price.
When does Landmark Cars IPO open and close?
Landmark Cars IPO opened for subscription on 13 Dec 2022 and closed on 15 Dec 2022.
What is the listing date of Landmark Cars IPO?
Landmark Cars IPO listed on 23 Dec 2022.