Landmark Cars IPO subscribed 3.06 times at close

Landmark Cars IPO worth Rs. 552 crore, consisted of a fresh issue of shares of Rs. 150 crore and an offer for sale worth Rs. 402 crore. The IPO saw fairly tepid response on Day-1 and Day-2 of the IPO and closed with rather tepid subscription numbers at the close of Day-3. In fact, the company got fully subscribed only on the last day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Landmark Cars Ltd IPO was subscribed at 3.06X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment with the retail segment getting actually undersubscribed. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did get through but there was no surge of funding applications coming on the last day of the IPO.

As of close of 15th December 2022, out of the 80.42 lakh shares on offer in the IPO, Landmark Cars Ltd saw bids for 246.45 lakh shares. This implies an overall subscription of 3.06X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors. QIB bids and NII bids typically gather most of the momentum on the last day, but that was not the case in this issue as even the final numbers were quite tepid for the HNI / NII investors. However, the QIB bids picked up momentum on the last day and managed to get good enough subscription performance at the end of Day-3.

Landmark Cars Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 12th December 2022, Landmark Cars Ltd did an anchor placement of 32,66,797 shares at the upper end of the price band of Rs.506 to 14 anchor investors raising Rs.165.30 crore. The list of QIB investors included a number of marquee global names like Goldman Sachs India Portfolio, Pinebridge India Fund, Maven Fund, BNP Paribas Arbitrage, Morgan Stanley and Quantum State Investment Fund; apart from a host of Indian mutual fund and insurance companies.

The QIB portion (net of anchor allocation as explained above) has a quota of 22.91 lakh shares of which it has got bids for 199.63 lakh shares at the close of Day-3, implying a subscription ratio of 8.71X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Landmark Cars Ltd IPO subscription overall, the actual demand did not turn out to be quite as robust as expected for the IPO.

HNI / NII Portion

The HNI portion got subscribed 1.32X (getting applications for 22.63 lakh shares against the quota of 17.18 lakh shares). That is a rather tepid response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion just about added marginally to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 1.59X while the below Rs10 lakh bid category (S-HNIs) got subscribed 0.78X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was undersubscribed getting response to the tune of just 0.59X or 59% at the close of Day-3, showing very weak retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 40.09 lakh shares on offer, valid bids were received for only 23.52 lakh shares, which included bids for 20.23 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.481 to 506) and has closed for subscription as of the close of Thursday, 15th December 2022.

The Rs.552 crore IPO of Landmark Cars Ltd, consisted of a fresh issue of shares of Rs150 crore and an offer for sale worth Rs402 crore. The IPO saw fairly tepid response on Day-1 and Day-2 of the IPO and closed with rather tepid subscription numbers at the close of Day-3. In fact, the company got fully subscribed only on the last day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Landmark Cars Ltd IPO was subscribed at 3.06X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment with the retail segment getting actually undersubscribed. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did get through but there was no surge of funding applications coming on the last day of the IPO.

As of close of 15th December 2022, out of the 80.42 lakh shares on offer in the IPO, Landmark Cars Ltd saw bids for 246.45 lakh shares. This implies an overall subscription of 3.06X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors. QIB bids and NII bids typically gather most of the momentum on the last day, but that was not the case in this issue as even the final numbers were quite tepid for the HNI / NII investors. However, the QIB bids picked up momentum on the last day and managed to get good enough subscription performance at the end of Day-3.

Landmark Cars Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 12th December 2022, Landmark Cars Ltd did an anchor placement of 32,66,797 shares at the upper end of the price band of Rs.506 to 14 anchor investors raising Rs.165.30 crore. The list of QIB investors included a number of marquee global names like Goldman Sachs India Portfolio, Pinebridge India Fund, Maven Fund, BNP Paribas Arbitrage, Morgan Stanley and Quantum State Investment Fund; apart from a host of Indian mutual fund and insurance companies.

The QIB portion (net of anchor allocation as explained above) has a quota of 22.91 lakh shares of which it has got bids for 199.63 lakh shares at the close of Day-3, implying a subscription ratio of 8.71X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Landmark Cars Ltd IPO subscription overall, the actual demand did not turn out to be quite as robust as expected for the IPO.

HNI / NII Portion

The HNI portion got subscribed 1.32X (getting applications for 22.63 lakh shares against the quota of 17.18 lakh shares). That is a rather tepid response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion just about added marginally to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 1.59X while the below Rs10 lakh bid category (S-HNIs) got subscribed 0.78X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was undersubscribed getting response to the tune of just 0.59X or 59% at the close of Day-3, showing very weak retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 40.09 lakh shares on offer, valid bids were received for only 23.52 lakh shares, which included bids for 20.23 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.481 to 506) and has closed for subscription as of the close of Thursday, 15th December 2022.