Landmark Cars IPO lists at discount of 6.92% and dips further

Landmark Cars IPO had a very weak listing on 23rd December 2022, listing at a discount of -6.92%, and then closing the day well below the listing price as well as the issue price of the IPO. While the stock did show some bouts of volatility during the day, it closed over -9.8% below the issue price on the first day of trading on the NSE. It also closed well below the listing price. With subscription of 3.06X overall and QIB subscription at 8.71X, the listing was expected to be moderate, at the very best. Here is the Landmark Cars Ltd listing story on 23rd December 2022.

The IPO price was fixed at the upper end of the band at Rs.506 which was anyways rather ambitious considering the rather moderate 3.06X overall subscription and the 8.71X QIB subscription in the IPO. The price band for the IPO was Rs. 481 to Rs. 506. On 23rd December 2022, the stock of Landmark Cars Ltd listed on the NSE at a price of Rs. 471, a discount of -6.92% below the IPO issue price of Rs. 506. On the BSE also, the stock listed at Rs. 471.30 a discount of -6.86% below the issue price.

On the NSE, Landmark Cars Ltd closed on 23rd December 2022 at a price of Rs. 456.15. That is a first day closing discount of -9.85% on the issue price of Rs. 506 and a more moderate discount of -3.15% on the listing price of Rs. 471. On the BSE, the stock closed at Rs. 460.05. That represents a first day closing discount of -9.08% below the issue price and a discount of -2.39% below the listing price on the stock exchange. On both the exchanges, the stock listed below the IPO issue price but closed Day-1 sharply below the listing price and the IPO price too. Clearly, the tepid subscription took its toll on the first day of listing as there was a rush to exit the stock after the weak opening. However, the typical Black Friday effect also took its toll as the Nifty is down more than 320 points during the day and the Sensex is lower by more than 980 points in the day.

On Day-1 of listing, Landmark Cars Ltd touched a high of Rs. 481.15 on the NSE and a low of Rs. 446.20. The discount sustained through the day. In fact, if you look at the range of prices, the stock opened near to the high price of the day but closed near to the lower price of the day, hinting at underlying weakness in the stock price and demand structure. On Day-1 of listing, the Landmark Cars Ltd stock traded a total of 31.33 lakh shares on NSE amounting to value of Rs. 145.57 crore on the first day. The order book during the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time.

On the BSE on Day-1 of listing, Landmark Cars Ltd touched a high of Rs. 480.65 and a low price of Rs. 446.45. The discount sustained through most of the day. In fact, like on the NSE, even on the BSE, if you look at the range of prices, the stock never crossed the issue price through the day and it closed very near to the low price of the day, while the opening was near to the high price of the day, an indicator of stock weakness. On Day-1 of listing, the Landmark Cars Ltd stock traded a total of 2.11 lakh shares on the BSE amounting to value of Rs. 9.82 crore on the first day.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. That make it a sell on rises stock through the day. On the NSE, out of the total 31.33 lakh shares traded during the first day of trading, the deliverable quantity represented 12.64 lakh shares or a deliverable percentage of 40.34% on the NSE. That shows a lot of delivery selling. Even on the BSE, out of the total 2.11 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 0.49 lakh shares representing total deliverable percentage of 23.27%.

At the close of Day-1 of listing, Landmark Cars Ltd had a market capitalization of Rs. 1,821.44 crore with free-float market cap of Rs. 346.07 crore.