CarTrade fixes IPO price band at ₹1585-1618 per share
Premium- For FY21, CarTrade reported a revenue of Rs281.52 crore versus ₹318.44 crore a year ago. Net profit was at Rs101.07 crore, up from Rs31.29 crore in FY20
MUMBAI: Online auto classifieds platform, CarTrade Tech Ltd, has fixed the price band of its initial public offering (IPO) at Rs1,585-1,618 a share. The issue will open on 9 August and close on 11 August.
CarTrade, which helps users find pre-owned as well as new cars, is backed by American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan, and March Capital Partners.
The IPO comprises a pure offer for sale 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 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.
At the upper end of the price band of Rs1,618, the firm hopes to raise around Rs2,998.15 crore.
"CarTrade tech is the only profitable online second-hand seller/car aggregator when compared to its peers Cars24, CarDekho, Mahindra First Choice and Droom. (as per the DRHP which mentions FY20 financials) This does make the IPO interesting," said Aditya Kondawar, COO, JST Investments .
"Total addressable market (TAM) is pegged at $14.4 billion and revenue of all players combined was a minuscule Rs4,693 crore in FY20. A lot of people are indeed going the used car way instead of buying a new car due to a lower cost, better buying opportunities, better knowledge etc," Kondawar added.
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.
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For fiscal 2021, the firm reported a revenue of Rs281.52 crore versus ₹318.44 crore a year ago. Net profit was at Rs101.07 crore, up from Rs31.29 crore in FY20.
The company says its platforms CarWale and BikeWale ranked number one on relative online search popularity when compared to key competitors. Its platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
For the June 2021 quarter, its consumer platforms, CarWale, CarTrade and BikeWale collectively had an average of 27.11 million unique visitors per month, with 88.14% being organic visitors.
CarTrade had picked up a 51% stake in Shriram Automall in January 2018 for around Rs157 crore. In 2015, it had acquired rival CarWale in a move to consolidate the online auto classifieds industry.
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