Landmark Cars shares rally over 9% on new dealership with MG Motor

Shares of Landmark Cars Ltd surged during the trading session on Friday after the company entered Ujjain with MG dealership. The company informed about the same through an exchange filing after the market hours on Thursday. Landmark Cars has received a Letter of Intent from MG Motor India for opening a dealership in Ujjain, Madhya Pradesh, said the exchange filing. "This dealership will be established by M/s Aeromark Cars, a wholly owned subsidiary company of Landmark Cars," it said. This business will include sales and after sales of MG Cars. After Indore and Bhopal, this is Landmark’s third MG dealership in the state of Madhya Pradesh. This new dealership aligns with Landmark's goal of ongoing expansion by penetrating further across geographies as well as OEMs, the filing added further. Following the announcement, shares of Landmark Cars jumped 9.35 per cent to Rs 785.75 on Friday, commanding a total market capitalization close to Rs 3,200 crore. The scrip had settled at Rs 718.50 in the previous trading session on Thursday. Shares of Landmark Cars were listed at the bourses in December 2022, when the company raised a total of Rs 552 crore via its primary stake sale. The company sold its shares for Rs 506 apiece. However, the stock is up 55 per cent from its issue price in less than 15-months period. Landmark cars is one of the leading premium automotive retail businesses in India. Landmark has signed six dealership agreements with MG Motor. Currently, Landmark Cars is present in nine states of India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault.