CarTrade IPO: Issue subscribed 5.11 times on final day; QIB booked 3.37 times

The CarTrade Tech (a multi-channel auto platform provider) IPO was subscribed at 5.11 times on the final bidding day on August 11.  The company gathered bids for an enormous 6.62 crore equity shares against IPO size of 1.29 crore equity shares.

The CarTrade Tech (a multi-channel auto platform provider) IPO was subscribed at 5.11 times on the final bidding day on August 11.  The company gathered bids for an enormous 6.62 crore equity shares against an IPO size of 1.29 crore equity shares. The portion reserved for the qualified institutional buyers received 3.37 times subscription, and the portion for the non-institutional investors was subscribed at 14.49 times.

Retail investors continued to provide good support to the offer as their portion was subscribed 2.08 times.

The company that channelizes the functioning of eminent brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz, aims to make Rs 2,998.51 crore through its initial public offering. This proposed an absolute package for marquee investors like CMDB II, Highdell Investment, Macritchie Investments, and Springfield Venture International. Among others, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, and Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi) to sell shares through IPO.

Further, “CarTrade actively invests in improving their technology such as their AI and machine learning capabilities to provide more relevant and timely information to their customers and enhance user experience. In addition to the above, they have provided a dealer management system (DMS) to BMW India to support all BMW dealers in India run their used car businesses in an efficient and digitally-optimized manner,” added BP Equities who have showered a subscribed rating upon the company on a long-term basis.

The brokerage also stated that “its comprehensive range of services i.e. automotive buying, selling, financing, marketing, etc and profitable and scalable business model provide for further growth visibility.

About the valuation grounds, at the upper price band of Rs 1,618, CarTrade is valued at 73.3x P/E in reaction to the diluted equity shares and the current fiscal year’s annualized earnings.

In the grey market, CarTrade Tech shares traded at a premium of Rs 150, which dipped severely from Rs 320 a day before, as per the IPO Watch data. This gave rise to a trading price of Rs 1,768, which rose the issue price of 9.3 per cent against the issue price of Rs 1,618.

Source Money Control
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