CarTrade stock made a weak debut on Friday and traded at ₹1,599.8 per share on the NSE, a discount to the issue price of ₹1,618 pieces. CarTrade shares were traded on the BSE ₹1,579, more than 2% less than the IPO issue price.
The initial public offering (IPO) of the online Auto Classic platform was subscribed 20.29 times at the closing date. The three-day issue, which ended on August 11, received offers for 26,31,74,823 shares against 1,29,72,552 shares offered, according to stock market data. The Qualified Institutional Buyer (QIB) category was subscribed 35.45 times, while the Non-Institutional Investor unit was subscribed 41 times. The Private Investor Quota (RIIs) was subscribed 2.75 times.
Rahul Sharma, co-founder of Equity99, said, “CarTrade Tech Ltd is a multi-channel car platform provider. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. The platform connects new and used car customers, vehicle dealers, vehicle OEMs and other companies to buy and sell different types of vehicles. The company offers a variety of automotive transaction solutions for buying, selling, marketing, financing and other activities. ”
The CarTrade platform enables customers to buy and sell used and new cars. The IPO comprised a pure offer for sale (OFS) of 18.53 million shares by existing shareholders and promoters. The company had increased ₹900 crore from anchor investors before the issue.
The company generates income from commissions and fees from auctions and remarketing services, online advertising solutions, lead generation, technology-based services for OEMs, dealers, banks and other financial institutions, and inspection and valuation services. CarTrade was founded in 2009 and is supported by well-known investors – Warburg Pincus, Temasek, JPMorgan and March Capital.
The company is a multi-channel car platform with coverage and presence for all vehicle types and value-added services through its brands CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.
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