Shares of Landmark Cars rallied 8.3 percent on Friday, June 23, after a significant block deal took place on the exchanges, where shares worth ₹293 crore were traded. Approximately 44.56 lakh shares, equivalent to an 11% stake in the company, were traded on the exchanges, as per Moneycontrol.
The transaction occurred at a floor price of ₹658 per share, representing a one percent discount from the previous closing price of ₹662.40, it said.
This came a day after media reports indicated that TPG Capital, the private equity firm, intended to divest its approximately 11% stake in the auto retailer. The block deal, estimated at around ₹300 crore, would involve the sale of over 4.4 million shares, CNBC TV-18 had reported.
During Friday’s trade, the stock opened at a price of Rs. 702.05 per share against the previous close of Rs. 663.60 and grew further during the early trading session to touch an intraday high of Rs. 719.
It was trading at ₹714.10, up by 7.61 percent, at 10:55 a.m. on the BSE.
The stock touched a 52-week high of Rs. 743.85 on June 15, 2023 and a 52-week low of Rs. 431.35 on December 26, 2022, indicating that at the current level, the stock is trading over 65 percent above its 52-week low and just 4 percent below its 52-week high.
The stock has grown nearly 3 percent in the last one month. Moreover, in the past six months, it has increased by over 55 percent.
The sale of the stake signifies TPG's departure from Landmark Cars, where it previously held an 11.25% stake through its affiliate, TPG Growth II SF Pte Ltd, as per the shareholding data of Landmark Cars as of March 31.
TPG's exit from Landmark Cars comes shortly after the equity firm divested its entire stake in non-banking finance company Shriram Finance for a total of ₹1,390 crore.
In a separate development, Bajaj Finance recently sold 2.5 lakh equity shares, representing approximately 0.6% stake in Landmark Cars, at a base price of ₹690.03 per share. The transaction yielded Bajaj Finance a sum of ₹15.53 crore.
Landmark Cars Limited is an India-based company, which operates an automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. The company also has a commercial vehicle dealership with Ashok Leyland in India.
According to a MintGenie poll, 02 analysts on average have a ‘STRONG BUY’ call on the stock.
