Landmark Cars Ltd, a premium automotive retail business in India, listed on the bourses today at a discount of 10%.
The shares of the newly listed company were trading at ₹456 per share on the BSE, down 9.9%. The stock hit a low at ₹446.45, and a high of 473. 25 rupees.
On the NSE, the shares of Landmark Cars were trading at ₹471, at a discount of 6.9% from the issue price.
At 10:04 IST, shares of the company was trading at ₹462.80 per share, down over 8%.
On the final day, the Initial Public Offering (IPO) was subscribed 3.06 times, primarily due to overwhelming response from qualified institutional buyers, followed by strong response from employees, and non-institutional investors segment.
However, only slightly more than half of the retail investors' portion was subscribed.
The company raised ₹165 crore from anchor investors which included Goldman Sachs, PineBridge Global Funds, BNP Paribas, Morgan Stanley Asia (Singapore) Pte, and Elara India Opportunities Fund.
The equity shares were also allocated to domestic institutions that included HDFC Mutual Fund, Nippon Life Mutual Fund, Aditya Birla Sun Life Mutual Fund, Edelweiss Mutual Fund, Maven India Fund, Bengal Finance and Investment, Resonance Opportunities Fund and Quantum State Investment Fund.
The company that houses dealerships of Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault fixed the price band at 481-506 rupees per share, for its IPO.
The public offering of equity shares with a face value of ₹5 each consists of a fresh issue worth ₹150 crore and an offer for sale (OFS) by existing shareholders of shares worth ₹402 crore.
The proceeds from the fresh issue will be utilised by the company to repay or pre-pay loans of the company and its arms. The company would also use the funds for general corporate purposes.
Axis Capital Limited and ICICI Securities Limited are the book running lead managers.
Prashanth Tapse, Research Analyst, Senior VP Research of Mehta Equities Ltd, advises allotted investors to exit on listing day, and cautious investors to better avoid adding this stock on the listing day, given the market climate.