With IPO fever still going strong in India 2021, CarTrade has received the green signal to float its initial public offering on 9 August 2021. The IPO will be open for subscription till 11 August 2021, with the company hoping to raise Rs. 2000 crores through it.
CarTrade Tech Ltd. is an online portal through which individuals can purchase new or used cars and sell old ones. It also has several subsidiaries, including CarWale, BikeWale and AutoBiz, among others.
This portal is backed by several foreign companies such as Warburg Pincus, JPMorgan, March Capital Partners and Temasek.
CarTrade IPO Details
It is a purely offer for sale from some of the company’s present investors. The IPO will comprise a public issue of 1,85,32,216 equity shares from the company’s existing shareholders and promoters.
The breakup is as follows:
- CMDB II is selling 22,64,334 shares
- Highdell Investment is offloading 84,09,364 shares
- MacRitchie Investments Pte Ltd. is selling 50,76,761 shares
- Bina Vinod Sanghi is parting with 1,83,333 shares
- Springfield Venture International is putting 17,65,309 shares on the market
Apart from these, there are a few other shareholders diluting their stakes of CarTrade Tech in the upcoming IPO.
CarTrade Tech IPO’s book running lead managers are:
- Citigroup Global Markets India
- Nomura Financial Advisory
- Kotak Mahindra Capital
- Axis Capital
- Securities India
CarTrade Tech So Far
So far, CarTrade Tech has raised its capital in private funding rounds. This led the company to almost reach the unicorn status of $1 billion in valuation in March 2021.
The company reported profits of Rs. 101.07 crores in 2021, having acquired its competitors CarWale (2015) and Shriram Automall (2018). CarTrade Tech tasted superlative success with CarWale, and BikeWale portals ranking on top of SERPs compared to competitors.
In fact, the popularity of the sites is such that CarWale, CarTrade and BikeWale had 88.14% of organic visitors.
It is expected that fair weather will oversee this IPO as consumers continue to opt for personal mobility and choose used cars.
Additionally, present pandemic conditions have boosted the preference for CarTrade Tech as a convenient option to buy and sell vehicles.
Strengths of the Company
The chief strengths of CarTrade Tech are that it offers a host of services such as automobile purchase, sell, financing, etc. Its business model is also highly scalable.
CarTrade Tech is a profit-making venture, and its prospects have been only increasing each year. Given the present scenario where the used-vehicle industry is growing rapidly, there is a strong buzz regarding this IPO.
Nonetheless, investors must take note of the company’s strengths, weaknesses, competitors and opportunities beforehand to undertake a comprehensive decision.
Frequently Asked Questions
- What are the brands under CarTrade Tech?
There are several brands under CarTrade Tech. These are Adroit Auto, AutoBiz, CarTradeExchange, BikeWale, Shriram Automall, CarTrade, and Car Wale.
- Who are the company’s promoters?
There are no company promoters, and CarTrade Tech is a professionally managed company.
- What was the total earnings for CarTrade Tech as of FY 2020?
During April-December 2020, CarTrade’s total earnings amounted to Rs. 189. 6 crores.