Landmark Cars jumps 6% post block deal, TPG likely seller

Shares of Landmark Cars surged over 6 percent in the early trade on June 23 following a block deal on the exchanges. Around 44.56 lakh shares, or around 11 percent stake, in the company changed hands on the exchanges on June 23.

The transaction was done at a floor price of Rs 658 apiece, a discount of one percent from the previous closing price of Rs 662.40, taking the deal value to Rs 293 crore.

Moneycontrol could not immediately identify the parties involved in the transaction. A day earlier CNBC-TV18 reported that US-based investment firm TPG Capital was looking to sell over 44 lakh shares, or around an 11 percent stake, in the company at a floor price which was a 0-5 percent discount to the stock’s closing price that day.

Brokerage firm ICICI Securities was the sole broker for the deal, the report, which came after market hours, said.

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The stake sale marks TPG’s exit from the automotive retailer as it held an 11.25 percent stake in the company through its affiliate, TPG Growth II SF Pte Ltd, the shareholding data of Landmark Cars as on March 31 shows.

At 9.17 am, shares of Landmark Cars were trading at Rs 692 on the National Exchange, up 4.47 percent from the previous close.

TPG’s exit from Landmark Cars comes just a few days after the equity firm hived off its entire stake in the non-bank finance company Shriram Finance in a deal worth Rs 1,390 crore.

Earlier this month, Bajaj Finance also offloaded 2.5 lakh equity shares, or around 0.6 percent stake, in Landmark Cars at a base price of Rs 690.03 a share. Bajaj Finance made Rs 15.53 crore from the transaction.

The company had made a subdued debut on the exchanges in December last year when it listed at a 7 percent discount to its IPO price of Rs 506. Since then, the stock has gained around 30 percent.

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