Landmark Cars aims to file DRHP for IPO with Sebi this week
1 min read 18 Jan 2022, 02:13 PM ISTCar dealership chain Landmark Cars aims to raise more than ₹750 crore from the primary markets in what would likely be the biggest car retailer listing on D-street through an initial public offering (IPO) in India
PremiumNEW DELHI : Car dealership chain Landmark Cars aims to raise more than ₹750 crore from the primary markets in what would likely be the biggest car retailer listing on D-street through an initial public offering (IPO) in India, according to two persons aware of the development.
The dealership network aims to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) this week, the two persons said on the condition of anonymity.
The only listed automotive retail group at present is Maruti Suzuki dealer Competent Automobiles, at a current market capitalisation of about ₹115 crore.
TPG Growth, which had invested about $25 million in Landmark Cars in 2015, may be able to offload part of its stake in the IPO.
The auto dealership business of Landmark Cars is spread across 29 cities in places such as Gujarat, West Bengal, Maharashtra, Madhya Pradesh, Delhi, and Punjab. The group recently announced its association with China-based electric vehicle (EV) manufacturer BYD for the sale and after-sales services of its EVs in India.
Landmark Cars is one of the largest retailers in India of luxury and premium cars, including brands such as Mercedes Benz, Jeep, Volkswagen, Renault, and Honda. It has more than 100 dealerships in the country.
Group Landmark, which was founded by Sanjay Thakker in 1997, also runs an insurance broking business and employs more than 3,000 people.
“Given the current market scenario, the profitability of dealerships has been impacted adversely and opportunities for expansion through acquisitions exist for strong players," said Ravi Bhatia, president and director of auto intelligence firm JATO Dynamics India.
“There are six well-established, publicly traded automobile dealership groups in the US, including the Asbury Automotive Group and Group 1 Automotive, who have weathered the economic crises of 2000 and 2008 respectively," he said.
“This is good evidence of relatively steady market performance from a term perspective. There is appetite in the market for a company with a strong balance sheet in the auto retail ecosystem," Bhatia said.
Mint could not immediately reach Group Landmark for comment.
