Indian luxury automobiles seller Landmark Cars and trucks Ltd’s initial public presenting, valued at 5.52 billion rupees ($66.71 million), was oversubscribed on Thursday, but analysts nonetheless claimed demand from customers was tepid.

Buyers bid for 24.6 million shares by the last day of bidding, 3.1 instances the 8 million shares on offer, trade facts confirmed.

The organization experienced an provide for sale valued at 4.02 billion rupees and a clean challenge valued at 1.5 billion rupees. It proposes to use the quantity elevated from new concern to pay back debts up to 1.2 billion rupees.

Landmark, which sells cars and trucks designed by Mercedes-Benz, Jeep, Volkswagen and Renault among some others, is hunting to faucet a growing demand from customers for luxury autos from the country’s somewhat inflation-resistant greater-finish current market.

The listing’s retail group subscription for the listing finished at .59 periods, with the selling price band of the issue preset at 481 rupees to 506 rupees for each share.

“There are quite a few IPOs presently open and that has divided the liquidity obtainable with the investors,” Saurabh Joshi, study analyst at Marwadi SharesĀ andĀ Finance, stated, incorporating the subscription amount was “tepid.”

Joshi explained buyers ended up missing out by not buying shares in Landmark as demand for automobiles are likely up.

India’s most significant wine producer Sula Vineyards also obtained a lukewarm response for its IPO, with analysts noting the industry sentiment was weak.

Landmark, which begun off in 1998 as a Honda supplier, now has 112 retailers in 8 states and union territories, introducing 4 extra makes such as to extend in the speedy-developing luxury automobile business enterprise.

Analysts idea utility vehicle (UV) volumes to improve, benefiting Landmark, whose 5 associates specialize in UVs, specifically sporting activities versions.

Nevertheless, brokerages have also said restrictions imposed by its partners could adversely influence its enterprise and foil its strategies to extend into new territories.