On August 9, the initial public offering of CarTrade Tech, a multi-channel auto platform received a good 6 per cent subscription within few hours of its commencement with investors bidding for 8.37 lakh equity shares in comparison to the IPO size worth Rs 1.29 crore equity shares, as claimed by the Exchange data.
Moreover, retail investors too contested on the same grounds and received a whopping 13 per cent booking rate of their reserved chunk. Non-institutional investors had bid for 3,915 equity shares compared to their reserved portion of 27.79 lakh shares. But the institutional buyers are yet to offer their bids.
On August 6, CarTrade Tech has degraded the offered size to 1.29 crore shares from 1.85 crore shares after receiving Rs 900 from the anchor investors a day before the issue commencement.
The company plans to place Rs 2,998.5 crore through the latest issue to make it an absolute offer package for sale by interested investors and shareholders. The price band for the offer is uniformly set at Rs 1,585-1,618 per share.
Established in April 2000, Cartrade is a multi-channel auto platform with a great reach of vehicle types and value-added services. Its platforms function under the umbrella of various brands— CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. CarWale and CarTrade platforms help the customer to purchase or sell new cars whereas BikeWale aids in the purchase and sale of two-wheelers. Shriram Automall allows the sales of pre-owned vehicles and farm & construction instruments. CarTrade Exchange is an online auction platform for vehicles, while Adroit Auto provides the facility of vehicle inspection and valuation reports to various financial institutions. AutoBiz facilitates Customer Relationship Management (CRM) and second-hand car Enterprise Resource Planning (ERP) solutions to original equipment manufacturers (OEMs) such as BMW India and MG Motor India.
“In terms of valuations, the post-issue FY2021 PE works out 73.4x to (at the upper end of the issue price band). There are no listed peers for comparison. However, the company is doing better compared to unlisted peers in terms of financial,” added Amarjeet Maurya, AVP-Mid Caps at Angel Broking.
CarTrade Tech shares were trading in the grey market at a premium range of Rs 400-450, according to the IPO Watch and IPO Central data with a trading price of Rs 2,018-2,068, 25-28 per cent above the issue price band of Rs 1,618.