CarTrade Tech IPO to open on August 9; nine things you must know

The Rs 2,998.51-crore initial public offering (IPO) of Mumbai-based CarTrade Tech will hit the street for subscription on August 9. Here are all the details about the offer.

Open and close date: The offer will open for subscription on August 9 and the bidding will close on August 11. The anchor book, if any, will open for a day before the issue opening, i.e. August 8.

Price band: The price band for the multi-channel auto platform has been fixed at Rs 1,585-1,618 per share having a face value of Rs 10 per share.

Lot size: Investors can bid for a minimum of 9 equity shares and in multiples thereafter, translating to a minimum bidding amount of Rs 14,562 at the higher end of the price band. A retail investor can at max apply for 13 lots or 117 shares for Rs 1,89,306.

Issue size: The Rs 2,998.51-crore public offer is a pure offer for sale (OFS) of 18.53 million shares by existing shareholders and promoters. The OFS will see a sale of 2.26 million shares by CMDB II, up to 8.41 million shares by Highdell Investment, up to 5.08 million shares by Macrithie Investments Pte, up to 1.77 million shares by Springfield Venture International, and 1.83 lakh shares by Bina Vinod Sanghi.

Currently, CMDB II holds an 11.93% stake in the company, Highdell Investment, MacRitche Investment Pte, and Springfield Venture International hold 34.44%, 26.48% and 7.09% stake, respectively, in the company.

Objective of issue: Since the entire issue is an offer for sale none of the proceeds would be coming to the company’s balance sheet.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: CarTrade Tech Ltd is a multi-channel auto platform provider company. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles. The company offers a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.

For the financial year ended March 31, 2021, the company reported total revenue of Rs 281.52 crore compared to Rs 266.81 crore in FY19. While its profits quadrupled to Rs 101.07 crore in FY21 compared to Rs 25.92 crore posted in FY19.

Book running lead managers and registrar to the IPO: The book running lead managers to the issue are Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital and Nomura Financial Advisory and Securities India. The registrar to the issue is Link Intime.

Issue timeline: The issue is likely to finalize the basis of allotment by August 17, and the initialization of refunds will take place by August 18. While the credit of equity shares to depository accounts of the allottee will be done on August 20. The company is expected to make its stock market debut on August 23, 2021.