Will Landmark Cars park at D-st with a listing pop?

The muted debut of Sula Vineyards is sending shivers down the spine of other listing candidates even as they feel the heat of volatility in the broader markets, giving up their premium in the grey market.

One such player is Landmark Cars, currently exchanging hands at a discount of Rs 15-20 in the unofficial market, against the issue price of Rs 506. The company was commanding a premium of Rs 45-50 at its peak.

According to analysts tracking the grey market, the company's muted financial growth, tepid response and pricey valuations, coupled with spooked sentiments in the listed space are denting the sentiments.

Manish Khanna, Co-Founder, of Unlisted Assets, said the shares have fallen from premium and available at a discount of Rs 15 — just a day ahead of its listing.

Abhay Doshi, co-founder of UnlistedArena, said the company's financial performance has remained muted and there is no exception in case of the issue. "Even the valuations were not very attractive," he added.

The company's Rs 552-crore IPO was sold in the range of Rs 481-506 per share, and received a mild investor response, getting a subscription of more than three times between December 13 and 15.

The quota reserved for qualified institutional buyers (QIBs) was subscribed 8.71 times while the ones reserved for non-institutional investors (NIIs), employees and retailers were subscribed 1.6 times, 2.93 times and 59%, respectively.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said the issue had received a good response from investors on both the institutional and retail sides, but there is huge competition and it still needs to reduce debt.

"The issue has been fully priced, with a P/E ratio of around 28. Looking at the current market conditions, it will not be fair to expect much from its listing," he added.

Incorporated in 1998, Landmark Cars is the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault caters the commercial vehicle retail business of Ashok Leyland.

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