CarTrade Tech files IPO papers with SEBI, issue entirely an OFS; key things to know about public issue

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May 17, 2021 10:17 AM

CarTrade Tech has filed a draft red herring prospectus with capital markets regulator SEBI, to launch an initial public offering (IPO).

CarTrade IPO, initial public offering, carwale, bikewaleCarTrade acquired CarWale in January 2016 and grew its revenue from Rs 34.7 crore in financial year 2016 to Rs 88 crore in financial year 2020. Image: Reuters

CarTrade Tech has filed a draft red herring prospectus with capital markets regulator SEBI, to launch an initial public offering (IPO). The issue will be entirely an offer-for-sale (OFS) comprising 1.23 crore equity shares. Investors participating in the offer for sale include CMDB II (16.07 lakh equity shares), Highdell Investment (53.79 lakh shares), Macritchie Investments (35.68 lakh shares), Springfield Venture International (11.24 lakh shares) and Bina Vinod Sanghi (1.83 lakh shares). The book-running managers include Axis Capital, Citigroup Global Markets India Private Ltd, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Ltd. The registrar to the issue is Link Intime India Private Ltd. There are no listed companies in India that engage in a business similar to that of CarTrade.

Key things to know about CarTrade IPO

– Currently, CMDB II holds 11.93 per cent stake, Highdell Investment 34.44 per cent, MacRitchie Investment Pte., 26.48 per cent and Springfield Venture International holds 7.09% stake in the company.

– The company is a multichannel auto platform with coverage and presence across vehicle types and value-added services through brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz, according to DRHP.

– CarTrade acquired CarWale in January 2016 and grew its revenue from Rs 34.7 crore in financial year 2016 to Rs 88 crore in financial year 2020. Similarly, it also acquired 55.43 per cent of the outstanding equity interest in Shriram Automall in January 2018.

– For the fiscal year 2020, the firm reported a total income of of Rs 318.4 crore versus Rs 266.8 crore a year ago.

– The objects of the offer are to carry out the OFS, achieve the benefits of listing the equity shares on the stock exchanges. The company will not receive any proceeds from the offer and all such proceeds will go to the selling shareholders.

– CarTrade Exchange and Autobiz are used by a large number of used and new automobile dealers to manage their business and increase their company’s productivity. CarTrade Exchange is a dealer management system for used automobile dealers to manage their processes from procurement to inventory management to sales. CarTrade Exchange is also used as an online auction platform by Shriram Automall.

– CarTrade is a technology company, comprising advanced and sophisticated technology platforms, operated by 224 technology employees as of March 31, 2021. In addition, the company has a data science team that focuses on utilizing the vast amount of data captured on their platforms for different purposes.

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