Landmark Cars Limited has informed the Exchange regarding 'Proposed investments in Wholly Owned Subsidiaries'.
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Awaiting price reaction for this filing.
The board of Landmark Cars Limited, held on December 31, 2025, approved investing Rs. 80 crore in its three wholly owned subsidiaries by subscribing to Optionally Convertible Redeemable Preference Shares (OCRPS) via rights issue. The investment is split as Rs. 25 crore in Aeromark Cars (MG brand dealer, FY25 revenue Rs. 425 crore), Rs. 35 crore in Landmark Premium Cars (KIA brand dealer, FY25 revenue Rs. 113.5 crore), and Rs. 20 crore in Landmark Mobility (Mahindra brand dealer, FY25 revenue Rs. 183.4 crore). The stated purpose is to reduce outstanding loans that Landmark Cars had extended to these subsidiaries. Since all three entities are already 100% owned, the shareholding will remain unchanged. The transaction is classified as a related party transaction and will be done in cash, with completion targeted by March 31, 2026.
This is a balance sheet restructuring rather than new business expansion, as it converts inter-corporate loans into preference share capital. It does not change ownership or introduce new capital from outside. Shareholders should see no immediate change in consolidated earnings, though the move cleans up the subsidiary debt structure. Neutral to mildly positive signal on financial discipline.