CarTrade IPO opens Aug 9, grey market premium soars 43%; check price band, IPO size, bid details

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August 03, 2021 12:02 PM

CarTrade Tech's Rs 2,999-crore IPO will open for subscription on 9 August 2021, at a price band of Rs 1,585-1,618 per share of face value of Rs 10 each

CarTrade Tech IPO, IpoIn the grey market on Tuesday, CarTrade Tech shares were quoting at a premium of Rs 690 over the IPO price

CarTrade Tech’s Rs 2,999-crore IPO will open for subscription on 9 August 2021, at a price band of Rs 1,585-1,618 per share of face value of Rs 10 each. The bidding for anchor investors will open on Friday 6 August. The public issue of this online auto classified platform will be entirely an offer for sale (OFS) of 1.85 crore equity shares. As a part of the OFS, CMDB II will offload 22.64 lakh equity shares, Highdell Investment Ltd will sell 84.09 lakh equity shares, Macritchie Investments Pte Ltd will offer 50.76 lakh equity shares and Springfield Venture International will divest 17.65 lakh equity shares. Currently, Highdell Investment owns a 34.44 per cent stake, CMDB II holds an 11.93 per cent stake, MacRitche Investment has 26.48 per cent shareholding and Springfield Venture International holds a 7.09 per cent stake in CarTrade.

In the grey market on Tuesday, CarTrade Tech shares were quoting at a premium of Rs 690 over the IPO price. CarTrdae Tech shares were trading at Rs 2,308 apiece, a premium of 43 per cent in the grey market, according to the people who deal in shares of unlisted companies. Half of the net offer has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. CarTrade is backed by marquee investors such as Warburg Pincus, Temasek, JP Morgan and March Capital.

Investors can make bids for a minimum of 9 equity shares and in multiples thereafter, implying a minimum investment of Rs 14,562 per lot. Investors are required to ensure that the bank account used for bidding is linked to their PAN. Retail individual bidders also have the option to submit the application directly to the ASBA Bank or to use the facility of linked online trading, demat and bank account. The price/earnings ratio based on diluted EPS for FY21 for the company at the upper end of the price band is 84.31. The weighted average return on net worth for the last three fiscals stood at 3.52 per cent. The issue will close for subscription on 11 August 2021.

CarTrade Tech is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands — CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Limited are the investment bankers to the issue. Link Intime India Private Ltd is the registrar to the issue.

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