India’s leading multichannel auto platform provider, CarTrade, has fixed the price band of its public issue at Rs. 1585 – 1618 per share.
The IPO of the company will open for subscription on 9 August. Individuals can apply for the initial share sale till 5 pm on 11 August, Wednesday.
This upcoming IPO will comprise an offer for sale (OFS) of 18,532,216 equity shares by existing shareholders and promoters.
Highdell Investment, Macrithie Investments Pte, and Springfield Venture International will offload their shares in the CarTrade IPO. Moreover, Bina Vinod Sanghi will be selling 1.83 lakh shares.
Don’t Forget These Details
Remember to keep these details in mind ahead of the upcoming IPO:
- Type of Issue: Book-built issue
- Face Value: 10 per equity share
- Minimum Order Quantity: 9 shares
- Market Lot: 9 shares
- Listing on: NSE and BSE
- Initiation of Refund: 18 August 2021
- Basis of Allotment Publication: 17 August 2021
The Mumbai-based company aims to achieve the following objectives by raisings funds via its initial public offering:
- Prepay or repay its outstanding borrowings partially/fully
- Fulfil general corporate objectives
Before applying for the initial public offering, investors must also consider key aspects such as the strengths and financials of this company. So let’s dive into them right away!
CarTrade’s Competitive Strengths
Here are some of the strengths of CarTrade:
- CarTrade is one of the leading platforms in India for the sale of automobiles.
- This company has popular brands under its umbrella, including CarWale, BikeWale, AutoBiz, and Shriram Automall.
- Its digital platform offers an extensive range of services besides the purchase and sale of cars. It acts as an information source for automobile enthusiasts. One can get access to expert reviews along with important news concerning cars.
- Since this company operates on an asset-light business model, it can reduce its capital expenditure and utilise the funds otherwise.
- CarTrade is making significant investments to improve its technology continuously. This allows the company to increase its profitability while bringing down its fixed costs.
- Following the takeover of BikeWale, this company has entered the two-wheeler segment as well.
Some other key highlights of CarTrade:
- This company possesses a strong distribution network that comprises more than 5,100 distributors in various cities all around India.
- It has raised funds worth $307.4 million over 8 rounds.
Apart from considering the strengths of CarTrade, it is imperative for investors to understand the company’s financial position. So, here’s a table that gives an idea about it.
|Financial Year||2018 – 19||2019 – 20||2020 – 21|
|Total Revenue (in Rs.)||266.81 crores||318.45 crores||281.52 crores|
|Total Assets (in Rs.)||1427.09 crores||1470.41 crores||1930.2 crores|
|Profit After Tax||25.92 crores||31.29 crores||101.07 crores|
Taking into account that CarTrade works on an asset-less business model, the company can acquire more companies to expand its foothold in the automotive sector. These takeovers will provide a significant boost to its company’s top line and bottom line.
Furthermore, CarTrade’s focus on technological improvements will improve its operational efficiency, reducing its expenses. Also, the company is well-positioned from a financial point of view. Hence, investors might want to consider subscribing to this company’s initial public offering. However, they must consider other key aspects regarding the company as well, such as threats and weaknesses, before applying.
Frequently Asked Questions
- What is the listing date of CarTrade IPO?
The listing date of CarTrade IPO is 23 August 2021.
- Which entity is the registrar for CarTrade IPO?
The registrar for CarTrade IPO is Link Intime India Private Limited.
- Who are the merchant bankers to this upcoming IPO?
Nomura Financial Advisory And Securities (India) Pvt Ltd, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Axis Capital Limited are appointed as merchant bankers for this company’s initial share sale.
- How can one subscribe to CarTrade IPO?
Individuals new to the world of investing can apply for CarTrade IPO by opening a DEMAT account with Angel One. However, existing customers can subscribe to the public issue by signing in to their trading account.
- How will eligible investors receive shares of CarTrade?
On 20 August, CarTrade shares will be credited to the DEMAT account of eligible investors once the allotment process is complete.
- What investor categories can apply for CarTrade IPO?
Qualified institutional buyers, non-institutional investors, and individual retail investors can subscribe to this initial public offering.