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.
Here in this article, you will find full details of the Car Trade Tech IPO review, details, financials, grey market premium, tentative timetable, etc.
Car Trade Tech IPO Review and Details
IPO Issue Size- Car Trade Tech is all set to hit the market on August 9 and close on August 11. The IPO size is Rs. 2998.51 crores. There is no fresh issue of the shares and the initial public offering will be entirely an offer for sale worth Rs. 2998.51 crore with 18,532,216 crore equity shares of Rs. 10.
Investors participating in OFS include CMDB II with offload 22.64 lakh equity shares, Highdell Investment Ltd. 84.09 lakh equity shares, Macritchie Investments 50.76 lakh equity shares and Springfield Venture International will divest 17.65 lakh equity shares.
As per the Red Herring Prospectus (RHP) of the Car Trade IPO, this will be a complete “Book Built Issue” in nature with a face value of Rs. 10 per equity share.
Car Trade IPO retail quota- Half of the net offer has been reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.
Utilization of IPO Fund- The company is raising no funds for itself and aims to utilize the net proceeds towards carrying out an offer for sale and to achieve the benefits of listing the equity shares in the stock exchange.
Price Band of Car Trade Tech IPO– The IPO has a price band of Rs. 1585 to Rs. 1618 per equity share. The issue has a minimum lot size of Rs. 9 Shares with an application cut-off of Rs. 14,562. The upper limit of the lot stands at 117 shares with Rs. 1,89,306 as the application cut-off amount.
The price/earnings ratio (P/E Ratio) based on diluted EPS for FY 21 for the company at the upper end of the price band is 84.31. The weight average return on net worth for the last three fiscal stood at 3.52 percent.
About the Company Car Trade Tech Ltd.
As per the information mentioned on the company’s website, we are a multi-channel auto platform with coverage and presence across vehicle types and value-added services. Our platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. Through these platforms, we enable new and used automobile customers, vehicle dealerships, vehicle OEMs, and other businesses to buy and sell their vehicles in a simple and efficient manner. Our vision is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies, and other stakeholders.
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.
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.
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.
Details of Car Trade Tech IPO
| Particulars | IPO Details |
|---|---|
| IPO Opening Date | Aug 09, 2021 |
| IPO Closing Date | Aug 11, 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Amount | Rs. 2998.51 Crore (offer for sale) |
| Price of IPO | Rs. 1585 to 1618 per equity shares |
| Face Value | Rs. 10 per equity share |
| Lot Size | 9 Shares and in multiples thereafter |
| Listing At | BSE and NSE |
Financials of the Car Trade Tech Limited
Car trade the company generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology-based services to original equipment manufactures, dealers, banks, and other financial institutions, and inspection and valuation services. Here are the financials of the company for the last 3 years.
| Particulars | 31st March 2021 | 31st March 2020 | 31st March 2019 |
|---|---|---|---|
| Total Assets | 19301.99 | 14704.06 | 14270.94 |
| Total Revenue | 2815.23 | 3184.45 | 2668.05 |
| Profit After Tax (PBT) | 1010.74 | 312.94 | 259.17 |
Car Trade Tech IPO Dates- Tentative Time Table
| Particulars | Dates |
|---|---|
| IPO Open Date | Aug 09, 2021 |
| IPO Close Date | Aug 11, 2021 |
| Basis of Allotment Date | Aug 17, 2021 |
| Initiation of Refunds | Aug 18, 2021 |
| The credit of Share to Demat A/c | Aug 20, 2021 |
| IPO Listing Date | Aug 23, 2021 |
Car Trade Tech IPO Lot Size
A bidder can apply for a minimum of one lot a maximum of 13 lots of the public issue. This means that the investment limit on a single bidder is a minimum of Rs. 14,562 (1618*9) and maximum Rs. 1,89,306 (1618*9*13) respectively.
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 9 | Rs. 14,562 |
| Maximum | 13 | 117 | Rs. 1,89,306 |
Car Trade Tech IPO Grey Market Premium (GMP) Today
In the grey market, Car Trade Tech shares were quoting at a premium of Rs. 690 over the IPO price. According to the people who deal in unlisted markets Car Trade Tech shares were trading at Rs. 2308 per share, a premium of 43% in the grey market.
To know more about the IPO, read the red herring prospectus here. The issue opens on 09th August 2021 and you can subscribe to Car Trade IPO by logging/sign up to your upstox Demat a/c. Meanwhile, we will keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned.
How to Apply For Car Trade Tech Ltd. IPO?
To apply for Car Trade Tech IPO online, an investor has to open a Demat account/trading account with financial institutions that provide this facility. like upstox. Once the account is open one should follow the below steps to apply online-
- On the IPO date, the first login to your Demat a/c and select the IPO you wish to invest in.
- Visit IPO Section your Demat a/c.
- Select the Car Trade Tech Limited IPO.
- Click on Apply.
- Enter your UPI ID.
- Select Bid.
- Check the box of SEBI Terms and Conditions.
- Confirm the UPI AutoPay request from the UPI app.
- Kudos! your IPO application will be submitted and sent to the company.
Frequently Asked Questions- FAQs
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What is the Car Trade Tech IPO allotment date?
The allotment date of Car Trade Tech Limited IPO is 17 August 2021. The company is all set to hit the market on August 9 and close on August 11. The IPO size is Rs. 2998.51 crores. There is no fresh issue of the shares and the initial public offering will be entirely an offer for sale worth Rs. 2998.51 crore with 18,532,216 crore equity shares of Rs. 10.
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What is the Car Trade IPO GMP?
In the grey market, Car Trade Tech IPO shares were quoting at a premium of Rs. 690 over the IPO price. According to the people who deal in unlisted markets Car Trade Tech shares were trading at Rs. 2308 per share, a premium of 43% in the grey market.
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Who is the registrar of Car Trade Tech IPO?
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. the details of the registrar are as follow-
Phone- +91-22-4918-6270
Email- cartrade.ipo@linkintime.co.in
Website- https://www.linkintime.co.in -
What is the contact information of Car Trade Tech Limited?
CarTrade Tech Limited
12th Floor, Vishwaroop IT Park, Sector 30A, Vashi, Navi Mumbai 400705, Maharashtra, IndiaPhone: +91 22 6739 8888
Email: investors@cartrade.com
Website: https://www.cartradetech.com/ -
What is the Car Trade Tech IPO Listing Date?
The Car Trade IPO tentative listing date is August 23, 2021. The company is raising no funds for itself and aims to utilize the net proceeds towards carrying out an offer for sale and to achieve the benefits of listing the equity shares in the stock exchange.
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What is the Lot Size of Car Trade Tech IPO?
The IPO has a price band of Rs. 1585 to Rs. 1618 per equity share. The issue has a minimum lot size of Rs. 9 Shares with an application cut-off of Rs. 14,562. The upper limit of the lot stands at 117 shares with Rs. 1,89,306 as the application cut-off amount.
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Car Trade Tech IPO Good or Bad?
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.
In the grey market, Car Trade Tech IPO shares were quoting at a premium of Rs. 690 over the IPO price. According to the people who deal in unlisted markets Car Trade Tech shares were trading at Rs. 2308 per share, a premium of 43% in the grey market.
If you are thinking to invest in this IPO, then It may be a good investment option for the future.
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What is the Car Trade IPO retail quota?
There is no fresh issue of the shares and the initial public offering will be entirely an offer for sale worth Rs. 2998.51 crore with 18,532,216 crore equity shares of Rs. 10. Half of the net offer has been reserved for qualified institutional buyers (QIBs), 35% quota for retail investors, and the remaining 15% for non-institutional investors.
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What are the Car Trade IPO Dates?
The company is all set to hit the market on August 9, 2021, and close on August 11, 2021, along with the following important dates-
IPO Open Date- Aug 09, 2021
IPO Close Date- Aug 11, 2021
Basis of Allotment Date- Aug 17, 2021
Initiation of Refunds- Aug 18, 2021
The credit of Share to Demat A/c- Aug 20, 2021
IPO Listing Date- Aug 23, 2021 -
Car Trade Tech IPO Price
The Car Trade IPO size is Rs. 2998.51 crores. There is no fresh issue of the shares and the initial public offering will be entirely an offer for sale worth Rs. 2998.51 crore with 18,532,216 crore equity shares of Rs. 10. The Car Trade Tech IPO has a price band of Rs. 1585 to Rs. 1618 per equity share. The issue has a minimum lot size of Rs. 9 Shares with an application cut-off of Rs. 14,562. The upper limit of the lot stands at 117 shares with Rs. 1,89,306 as the application cut-off amount.
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