landmark cars, TPG backed, premium car retailer Landmark Cars to file for an IPO of Rs 800 crore

 

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. Avaneesh Parasar

Automobile dealership chain Landmark Cars Ltd. plans to file a draft red herring prospectus in the coming weeks to raise over Rs 800 crore through an initial public offering, said people aware of the company’s plan.

Axis Capital and ICICI Securities have been appointed as the lead managers for the proposed issue, they said.

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.

Globally, there are multiple large auto retail chains which are listed. India is likely to see a similar trend, say experts.

The IPO will offer TPG a chance to sell a part of its stake in the company, said the people cited earlier. The proceeds from the IPO may be used for expansion, they said.

An email sent to Landmark Cars did not elicit any response till as of press time.

TPG had invested around Rs 140 crore in the automobile dealership chain in FY15. Since it came on board, Landmark Cars’ business has more than doubled — from retailing about 10,000 vehicles through 41 outlets at the end of FY15, sales grew to 20000 to 25000 cars at the end of FY20, giving an annual turnover of Rs 2,500–3,000 crore.

Apart from being the biggest seller of Mercedes Benz, Volkswagen, Honda and Jeep vehicles in the country, it is also the third biggest retailer of Renault cars in India.

The company operates more than 110 outlets across eight states. It is in the business of sale of new vehicles (passenger as well as commercial), after-sales service, and sales of pre-owned passenger vehicles. It also facilitates sale of third-party financial products, including insurance policies and vehicle finance.

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