Shares of Landmark Cars ended 10 percent lower on their stock market debut. The stock listed at a 7 percent discount to its IPO price of Rs 507 before extending its losses.
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The stock has joined the list of companies that have listed at a discount to their issue price.
The three-day IPO of Landmark cars was subscribed 3.06 times on the final day of bidding. The Rs 552 crore IPO was a combination of a fresh issue of equity shares and an Offer for Sale of Rs 402 crore.
The portion for Qualified Institutional Bidders or QIB was subscribed 8.7 times while that for non-institutional investors was subscribed 1.32 times. However, the retail portion of the IPO was subscribed only 59 percent. Employee quota was subscribed 2.93 times.
Landmark cars ranks among the premium automotive dealerships in India. It is the top dealer in the country for brands like Mercedes, Honda, and Jeep. Apart from these three companies, it also has dealerships for Renault.
It also has a commercial vehicle dealership for Ashok Leyland in India.
In an interaction with CNBC-TV18, Sanjay Thakker of Landmark Cars said that the funds received from the IPO will be used to pay working capital debt, which is close to Rs 300 crore. He also said that the working capital debt is seasonal in nature and the company does not have any long-term debt.
The stock ended 10 percent lower at Rs 456.45.
