Landmark Cars IPO’s shares listing likely tomorrow. What GMP signals

The Initial Public Offer (IPO) of automobile dealership chain Landmark Cars got subscribed 3.06 times on the last day of subscription on Thursday, helped by huge interest from institutional buyers. The initial share sale received bids for 2,46,45,186 shares against 80,41,805 shares on offer. 

As per market observers, Landmark Cars shares have fallen from premium (GMP) and currently available at a discount of ₹15 in the grey market today. The shares of the company are expected to list on stock exchanges tomorrow, i.e., Friday, December 23, 2022.

Typically, a grey market is where a company's shares are offered unofficially to traders and hence they are not Sebi-regulated. A GMP does give a fair understanding of how a stock will be listed, however, there is no guarantee of the accuracy.

It had a fresh issue of up to ₹150 crore and an offer for sale of up to ₹402 crore, aggregating up to ₹552 crore. The company's public offer had a price range of ₹481-506 a share. Proceeds from fresh issuance 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. It 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.

As of June 30, 2022, the company has expanded its network to include 112 outlets in 8 Indian states and union territories, comprised of 59 sales showrooms and outlets and 53 after-sales services and spare outlets.