CarTrade Tech IPO will open for subscription on Monday. The company has fixed a price band of Rs 1,585-1,618 per share for its nearly Rs 2,999-crore initial public offer. CarTrade Tech is an online auto classified platform.
Earlier on Friday, CarTrade Tech said that it has raised Rs 900 crore from anchor investors ahead of its initial public offering. The company has decided to allocate 55,59,664 equity shares to anchor investors at Rs 1,618 apiece, valuing the transaction size to Rs 899.55 crore. Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF are among the anchor investors.
The initial share sale will be entirely an offer for sale (OFS) of 18,532,216 equity shares. The initial public offering (IPO) will conclude on August 11. At the upper end of the price band, the IPO is expected to mobilise Rs 2,998.51 crore.
CarTrade IPO GMP
In the grey market, the unlisted shares of CarTrade Tech are commanding a premium of Rs 380-385 apiece.
CarTrade Tech will finalise the basis of allotment on August 17 while refunds will be initiated on August 18. Shares will be credited to demat account on August 20. CarTrade Tech IPO listing on BSE and NSE will take place on August 23.
CarTrade Tech claims that it is creating an automotive digital ecosystem in India. In the January-March quarter, it had 32 million unique visitors, 80 per cent of them came organically (the company did not incur any marketing costs to get them).
Apart from providing a platform for buyers and sellers of vehicles, CarTrade is also a software company that has created interconnects between stakeholders like dealers, manufacturers, and banks. The company cited an industry report to highlight that there is a constant move towards online auto portals and the total addressable market in India was estimated at USD 14.3 billion in FY 2020.
Given the number of engagements and transactions on the platform, CarTrade is among the largest automotive data destinations in the country.
The company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to its shareholders, while also providing a public market for the equity shares in India.
Founded in 2009, CarTrade is backed by marquee investors -- Warburg Pincus, Temasek, JP Morgan, and March Capital. The CarTrade platform allows customers to buy and sell used cars as well as new cars. The company stated that it is a professionally managed entity and does not have an identifiable promoter (in terms of SEBI rules).