Private equity-backed TPG Growth car dealership chain Landmark Cars is looking to file a draft red herring prospectus (DRHP) with markets regulator SEBI today, two persons aware of the development told Mint.
The dealership network is looking to raise over Rs 750 crore from the primary markets, in what would likely be the biggest car retailer listing on the D-street through an Initial Public Offering (IPO) in India, both the persons said on condition of anonymity.
The only listed automotive retail group at present is Maruti Suzuki dealer Competent Automobiles, at a current market capitalisation of about Rs 115 crore.
TPG Growth, which had invested about $25 million in the company in 2015, may be able to offload a part of its stake in the company in the IPO.
Landmark's auto dealership business is spread across the country with presence in 29 cities in the states of Gujarat, West Bengal, Maharashtra Madhya Pradesh, Delhi & Punjab. The group recently announced its association with China-based EV manufacturer BYD, for the sale and after-sales services of its EVs in India.
Landmark Cars is one of the largest luxury and premium retailers in India, including brands such as Mercedes Benz, Jeep, Volkswagen, Renault & Honda Cars India, with more than 100 dealerships in the country.
Founded by Sanjay Thakker in 1997, Group Landmark also runs an insurance broking business and employs over 3000 people.
"Given the current market scenario, dealerships' profitability has been impacted adversely and opportunities for expansion through acquisitions exist for strong players," Ravi Bhatia, President & Director of auto intelligence firm JATO Dynamics India told Mint.
"There are six well established, publicly traded automobile dealership groups in the US, for instance the Asbury Automotive Group & Group 1 Automotive with long activity who have weathered the industry events of 2000 and 2008. This is good evidence from a term perspective, but given the current market situation, Landmark's valuation aspirations are high," Bhatia added.
Mint could not immediately reach Group Landmark for a comment on the story.