Luxury automobile dealer Landmark Cars' initial public offering (IPO) was oversubscribed on Thursday, the last day of the bidding. The bidding for the IPO commenced on December 13 and concluded on December 15. Trends in the grey market suggest a discounted listing of the company’s shares in the secondary market.

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"Currently, the GMP of Landmark IPO is at discount of Rs 10. The listing might be subdued," Umesh Paliwal, co-founder of InvestorZone told CNBC-TV18.com. "However, as the company is basically getting revenue from sales of luxury and premium cars as well from after sales services. The sales of Luxury and premium cars are showing sign of good revival post the pandemic," he added.

Paliwal highlighted that the company has recently inked an agreement to sell electric vehicles with automaker BYD Auto co. which is likely to have a positive impact on the company's growth in the coming future.

However, Prashanth Tapse of Mehta Equities expects a decent listing. "Despite subdued market conditions, Landmark offer has well managed to garner healthy response from all categories of investors, we expect a decent listing performance," Tapse said.

Tapse added that listing can be decent depending on market situation at the time of listing i.e. December 23, 2022.

Angel One brokerage too expects listing gains. "The company is available at 28.3x PE for FY22 providing low valuation comfort. We expect limited listing gains," the brokerage house said.

The share sale of the Landmark Cars received 3.1 times the eight million shares on offer on the last day. Investors bid for 24.6 million shares against eight million shares on offer, as per exchange data.

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The retail individual investors (RIIs) portion of Landmark Cars' IPO was subscribed 0.6 times with the price band of the issue fixed at 481 rupees to 506 rupees per share.

The price range for the Landmark Cars's Rs 552 crore IPO was set at Rs 481 to Rs 506. If the stock lists on the upper end of the price band, it will have a market capitalisation of over Rs 2,000 crore.

The IPO consists of fresh issue of shares worth Rs 150 crore and an offer for sale worth Rs 402 crore through which existing investors would sell their shares.

Earlier, 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.

Landmark Cars ranks among the premium automotive dealerships in India. The company is the top dealer for brands like Mercedes, Honda, and Jeep in India. Landmark Cars also has dealerships for Renault, and has a commercial vehicle dealership for Ashok Leyland in the country.

Landmark Cars' vehicle dealership network is spread across 32 cities in eight states and union territories including Maharashtra, Uttar Pradesh, Gujarat, Haryana, Madhya Pradesh, Punjab, West Bengal and NCT Delhi. These regions comprised of half of the Indian vehicle demand in financial year 2022.

The company has also signed a Letter of Intent with the automaker BYD, a global EV leader, for being their dealer in NCT Delhi and Mumbai for their electric PV sales.

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