CarTrade Filed Papers with SEBI to raise Rs. 2000 Crore from a fresh IPO

CAR Trade IPO- Online auto classifieds platform CarTrade has filed preliminary papers with capital markets regulator Security Exchange Board of India (SEBI) to raise funds through an Initial Public Offer (IPO). The company helps its users to find used as well as new cars, is backed by the American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JP Morgan, and March Capitals Partners.

The Company has appointed Axis Capital, Citigroup Global Market India, Nomura Financial Advisory and Securities (India) and Kotak Mahindra Bank to manage the issue. Link Intime India has been appointed as the registrar for Initial Public Offering.

Car Trade IPO

The move comes on the back of consumers preferring personal mobility and a sharp surge in the used and second-hand car sales during covid-19 which has provided a fillip to the firm’s business.

The papers have been filed with the SEBI. As per its filed DRHP, There is no fresh issue of the shares and the initial public offering will be entirely an offer for sale (OFS). This consists of 12,354,811 equity shares.

CAR Trade IPO OFS- The firm is raising no funds for itself. Investors participating in OFS include CMDB II (1,608,324 Shares), Highdell Investment (3,568,217 Shares), Macritchie Investments (3,568,217 Shares), Springfield Venture International (1,124,700 Shares), and Bina Vinod Sanghi (183,333 Shares).

The company competes with the likes of Droom, Cars24, Quikr, and Mahindra First Choice Wheels. Its founder and CEO Vinay Sanghi was the CEO of the Mahindra First Choice Wheels between 2000 and 2009.

Also Read- List of Upcoming Initial Public offer in 2021 in India

About the company

Founded in 2009, CarTrade.com is an online auto marketplace providing buyers and sellers a structured platform for transacting in new and used vehicles. Since its inception, it has expanded its offerings across India with a network of more than 4,000 dealers. Currently, over 4 million unique consumers visit CarTrade.com every month according to its website.

The firm’s business can be divided into two parts: CarTrade.com, the consumer portal where the users can visit to buy and sell used/new cars, and CarTradeExchange, the dealer portal which helps them manage their business operations.

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In November 2015, CarTrade acquired rival CarWale from German media conglomerate Axel Springer for around Rs 590 crore. Later in January 2018, it picked up a 51 percent stake in vehicle auctioning platform Shriram Automall India Private Ltd, a subsidiary of commercial vehicle lender Shriram Transport Finance.

Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

Investment in the securities market is subject to market risk. Read all scheme-related documents before investing.

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