CarTrade files for IPO

CarTrade, which helps users find used as well as new cars, is backed by the American private equity giant Warburg Pincus.Premium
CarTrade, which helps users find used as well as new cars, is backed by the American private equity giant Warburg Pincus.
 2 min read . Updated: 16 May 2021, 01:44 PM IST Ravindra N. Sonavane

Online auto classifieds platform, CarTrade Tech Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise funds via initial public offering (IPO).

In May 2021, Mint was the first one to report that it is planning to raise ₹2,000 crore via IPO.

MORE FROM THIS SECTIONSee All

CarTrade, which helps users find used as well as new cars, is backed by the American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan and March Capital Partners.

The IPO consists of a pure offer for sale of 1.61 million shares by CMDB II, up to 5.38 million shares by Highdell Investment, up to 3.57 million shares by Macrithie Investments Pte, up to 1.12 million shares by Springfield Venture International and 1.83 million shares by Bina Vinod Sanghi.

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

Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital and Nomura Financial Advisory and Securities India are the book running lead managers to the issue.

For the fiscal year 2020, the firm reported a revenue of ₹298.28 crore versus ₹243.28 crore a year ago. Net profit for the period stood at ₹7.62 crore against ₹9.51 crore a year ago.

The company says its platforms, CarWale and BikeWale, ranked number one on relative online search popularity when compared to their key competitors. Its platforms operate under several brands— CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

For the December 2020 quarter, its consumer platforms— CarWale, CarTrade and BikeWale— collectively had an average of 29.96 million unique visitors per month, with 87% being organic visitors.

CarTrade had picked up a 51% stake in Shriram Automall in January 2018 for around ₹157 crore. In 2015, it had acquired rival CarWale in a move to consolidate the online auto classifieds industry.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

RELATED STORIES

CarTrade set to file IPO papers, to raise up to ₹2,000 crore

Diagnostics chain Krsnaa files DRHP to raise funds via IPO

Close