CarTrade Tech Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
CarTrade IPO

CarTrade IPO: Key Details

  • Grey Market Premium (GMP) today: ₹425 – ₹440

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

CarTrade Tech Limited, incorporated in 2000, is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. They offer a variety of solutions across the automotive transaction value chain for marketing, buying, selling, and financing new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles, and farm and construction equipment.

Its platforms include CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz. Through these platforms, it enables new and used automobile customers, vehicle dealerships, vehicle OEMs, and other businesses to buy and sell their vehicles in a simple and efficient manner. Their vision is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies, and other stakeholders.

Competitive Strengths

  • Leading Marketplace for Automotive Sales with a Synergistic Ecosystem
  • Brands and Customer Experience Driving Powerful Network Effects
  • Proprietary End-to-End Technology Platforms
  • Focus on Data Science to Provide Solutions
  • Profitable and Scalable Business Model
  • Founder-led Management Team

Company Strategy

  • Well positioned to benefit from growth of the automotive sector and digitalization
  • Grow business through their digital ecosystem, online-offline presence and Vehicle-Agnostic Approach
  • Create an opportunity to monetize Value-Added Services and untapped opportunities through strong customer base and technology platform
  • Invest further in technology
  • Supplement organic growth with selective acquisitions

Proceeds from fresh issue of CarTrade IPO will be used to:

The Company will not directly receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer

CarTrade IPO: Financials

201920202021
Revenue from Ops₹243.28 Cr₹298.28 Cr₹249.68 Cr
Profit before Excep*₹35.43 Cr₹38.92 Cr₹46.98 Cr
Profit after Tax25.92 Cr₹31.29 Cr₹101.07 Cr
EPS (Basic)4.315.0719.19
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS13.63118.71116.29
* Weighted Average for last 3 years

CarTrade IPO: Comparison with listed industry peers

Based on the RHP, there are no listed companies in India that engage in a business similar to that of this Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company.

CarTrade IPO Dashboard

Issue Details

TypeValue
Issue Size₹2,998.5 Cr
Offer for Sale₹2,998.5 Cr
Face Value₹10/- per Equity Share
IPO Price₹1,585 – ₹1,618
Lot Size9 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open 09/08/2021
Bid Close 11/08/2021
Allotment Finalization17/08/2021
Initiation of Refunds18/08/2021
Credit of Shares20/08/2021
Listing Date20/08/2021

Lot Size and Price

LotsSharesAmount
19₹14,562
13117₹1,89,306

Promoter Holding

HoldingPercentage
Pre-Issue89.25 %
Post-Issue48.81 %

CarTrade IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%37,06,443 shares
NII15%27,79,833 shares
RII (Retail)35%64,86,276 shares
Total100%1,29,72,552 shares

CarTrade IPO: Risks

  • They may be adversely affected by a general decline in individual car ownership or sudden declines in
    demand for certain types of vehicles
  • They may experience disruptions, failures or breaches of technology platforms
  • Their actual or perceived failure to protect personal information and other data could damage reputation and brands.
  • They may be adversely affected by fraudulent behavior of sellers or purchasers of used vehicles listed
    on platforms.
  • Any failure to maintain, protect and enhance the recognition and reputation of brands could limit
    the ability to retain or expand the customer base and may adversely affect business.

For complete internal and external risk factors, you can refer to the RHP of the company.

CarTrade IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
Citigroup Global Markets India Private Limited
Kotak Mahindra Capital Company Limited
Nomura Financial Advisory and Securities

Phone: +91 22 4325 2183 / +91 22 4336 0000
Email: [email protected]

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