CarTrade Tech made an unimpressive debut on the bourses as its stock was listed at a discounted price of 1.1%. To elaborate, the issue price of CarTrade Tech IPO was Rs. 1,618 apiece. However, the same opened at Rs. 1,599.8 on NSE and at Rs. 1,600 on BSE. Followed by the listing, CarTrade’s market capitalisation stood at Rs. 73.3 billion.
Here’s more on this subject.
CarTrade IPO – In Retrospect
This multi-channel auto portal’s initial public offer garnered a healthy response from investors. By the end of day 3, CarTrade Tech IPO received a bid for 263.1 million shares against a total of 12.9 million shares. Accordingly, it raised Rs. 30 billion from this public offer.
The said public offer was a pure offer for sale by stakeholders, including Highdell Investment, Springfield Venture International, JP Morgan’s CMDB II, and MacRitchie Investments.
In a nutshell, CarTrade IPO was subscribed for –
- Shares reserved for qualified institutional buyers (QIBs) were subscribed 35.45 times.
- The reserved shares for non-institutional investors were subscribed a total of 41 times.
- The retail individual investors (RIIs) share portion was subscribed 2.75 times.
All in all, this company managed to receive a decent response from the investors.
But, what was CarTrade GMP before the public listing?
Ahead of its share listing, CarTrade Tech shares traded at a 10% premium over its issue price. Also, when this public offer opened on 9 August, the GMP stood 27.4% or at Rs. 400. Then again, since its opening, the GMP of the company shares came under pressure.
Ever since then, CarTrade’s GMP has been consistently falling and is somewhat volatile. It is assumed that the series of disappointing listings and poor market in August are among the reasons for the declining share price.
About CarTrade and its Prospects – A Quick Look
CarTrade is essentially a platform that connects new and used vehicle customers, dealers, and OEMs. It extends multifarious services involving automotive transactions, such as marketing, buying, selling, financing and other related activities. CarTrade Tech operates brands such as CarTrade, AutoBiz, Shriram Automall, CarWale, Adroit Auto, BikeWale, CarTradeExchange,
Its strong suite of brands strengthens CarTrade’s footing in the market. Above all, its strong financial standing, coupled with plans to implement strategic acquisitions, offer room for its growth.
The table below offers an insight into CarTrade’s fiscal standing –
|Fiscal Year||Total Revenue in Million||Expenses in Million||Net Profit in Million|
|FY 2020 – 2021||Rs. 2,815||Rs. 2,346||Rs. 1,011|
|FY 2019 – 2020||Rs. 3,185||Rs. 2,795||Rs. 313|
|FY 2018 – 2019||Rs. 2,668||Rs. 2,314||Rs. 259|
Even though the CarTrade shares were listed at a discount over the CarTrade IPO price, the company still has multiple catalysts working in its favour. Investors who were interested in investing in CarTrade shares can continue to plan the same undeterred. However, it is always advised to conduct a thorough analysis of any company and its prospects before investing their money in its shares.
Keep an eye on Angel One blogs to receive timely updates on upcoming IPOs and their performance.
Frequently Asked Questions
- What is the market capitalisation of CarTrade Tech?
During the time of writing, the market capitalisation of CarTrade Tech stands at Rs. 7,099.47 crores.
- What is the total number of CarTrade shares?
The total number of CarTrade shares is 4.58 crores.
- What is the face value of CarTrade shares?
The face value of CarTrade shares is Rs. 10.
- What is the sector PE of CarTrade?
During the time of writing, the sector PE of CarTrade was 781.67.