The initial public offering of CarTrade Tech, a multi-channel auto platform, was subscribed 41 percent on August 9, with investors bidding for 53 lakh equity shares against an IPO size of 1.29 crore equity shares, data available on exchanges showed.
Retail investors once again were at the forefront, buying 80 percent of their reserved portion. Non-institutional investors had bid for 91,800 equity shares against their reserved portion of 27.79 lakh shares. A part set aside for qualified institutional buyers was subscribed 1 percent.
CarTrade Tech has reduced the offer size to 1.29 crore shares from 1.85 crore shares after raising Rs 900 crore from anchor investors on August 6, a day before issue opening.
The company plans to mobilise Rs 2,998.5 crore through the issue which is a complete offer for sale by investors and shareholders. The price band for the offer has been fixed at Rs 1,585-1,618 a share.
Incorporated in April 2000, Cartrade is a multi-channel auto platform with coverage and presence across vehicle types and value-added services.
It offers a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing of new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles and farm and construction equipment.
Its platforms operate under several brands— CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
Its CarWale and CarTrade platforms help the visitor to buy and sell new and used cars, while BikeWale assists in the buying and selling of new and used two-wheelers. Shriram Automall facilitates sales of pre-owned vehicles and farm & construction equipment.
CarTrade Exchange is an online auction platform, while Adroit Auto offers vehicle inspection and valuation reports to financial institutions.
AutoBiz provides Customer Relationship Management (CRM) and used car Enterprise Resource Planning (ERP) solutions to original equipment manufacturers (OEMs) like 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," said Amarjeet Maurya-AVP-Mid Caps, Angel Broking.
The brokerage believes the company has a strong brand, better technology platforms, a profitable & scalable business model, said Maurya. He recommends subscribing the issue.
CarTrade Tech shares were trading at a premium of Rs 400-450 in the grey market, the IPO Watch and IPO Central data showed. It amounts to a trading price of Rs 2,018-2,068, 25-28 percent over the higher end of issue price band Rs 1,618.
The grey market is an unofficial trading platform where shares get traded well before the allotment in the IPO and listed on bourses.
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