Luxury auto dealer Landmark files DRHP to raise Rs 762 crore via IPO

TPG Growth II SF Pte Ltd will offer a sale that incorporates up to Rs 400 crore.

India’s one of the leading premium automotive retail businesses Ahmedabad-based Landmark Cars Ltd along with dealerships for Mercedes Benz, Honda, Jeep, Volkswagen and Renault has filed its draft red herring prospectus (DRHP) for Rs 762 crore initial public offering (IPO) with Sebi, the company confirmed in a press release.

In accordance with the draft papers, a fresh issue of equity shares aggregating to Rs 150 crore and an offer for sale (OFS) of up to Rs 612 crore is expected.

TPG Growth II SF Pte Ltd will offer a sale that incorporates up to Rs 400 crore and 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 (“Selling Shareholders.”). This offer also contains a compunction for subscriptions by eligible employees.

As per the press release, overall the company has sold above 1,30,000 Cars across all the brands it caters to. As stated in new vehicle sales, the company is firm to be the prime dealer for Mercedes-Benz, Honda, Stellantis (Jeep) in the year 2021, and Volkswagen and Renault in fiscal 2020. In FY21 Landmark dealerships have traded 1,133 vehicles for Mercedes and more than 4000 vehicles for Honda and Renault.

Besides, the company has just cracked a deal with global EV giant BYD to sell its MP6 Electric Vehicle in Mumbai & Delhi NCR. The returns from its fresh disbursement are worth Rs. 120 crores will be utilised for the compensation or prepayment of borrowings.

The company obtains more than 50% of its earnings from its after-sales segment and being an automotive dealer, it has also made incursions into technology and platforms through investments in Chatpay Commerce Private Limited (known as “Pitstop”), a multi-brand car service and repair provider and Sheerdrive Private Limited (“Sheerdrive”), an auto technology startup holding 9.79% and 19.97% respectively.

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