CarTrade Tech IPO will open for subscription on August 9th; know other details | Image credit: BCCL
CarTrade Tech’s Initial Public Offer (IPO) will open for subscription on August 9th and will close on August 11th. The IPO will offer up to 12,354,811 shares with a par value of Rs 10.
The issue is a 100% offer for sale (OFS) by the existing shareholders CMBD II, Highdell Investment Ltd, MacRitchie Investments, Springfield Venture International, Bina Vinod Sanghi, Vinay Vinod Sanghi, Daniel Edward, Shree Krishna Trust, Steve Greenfield, Victor Anthony Perry III, Seena Vinay Sanghi, Vinti Rajesh Gajree, Viraj Vinod Sanghi, and Niki Viraj Sanghi.
CarTrade Tech will announce the price range and lot size of the IPO in the coming weeks after consultation with commercial bankers.
Mauritius-based Highdell Investment is the company’s largest shareholder with 34.44% and MacRitchie Investments owns 26.48% of the company. CMDB II holds 11.93%, Springfield Venture International 7.09% and Vinay Vinod Sanghi 3.56% of the company.
The offer would represent 26.96% of the share capital paid up after the offer. The company does not receive any money from the sale of shares as all of the proceeds from the IPO go to the selling shareholders.
The company describes itself as “India’s Leading Online Car Portal” for both cars and two-wheelers based on the relative popularity of online search in FY2021.
According to RedSeer, CarTrade Tech is the only and most profitable digital car platform for the 2020 financial year. It is a multi-channel auto platform with coverage and presence for all vehicle types and value-added services through our brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
Online car platforms bring buyers and sellers together efficiently and on a large scale on a single platform. In the three months to March 31, 2021, the CarTrade platforms recorded an average of 31.99 million individual visitors per month and 814,316 vehicles were auctioned in the 2021 financial year, according to the IPO papers submitted to SEBI.