The Economic Times
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| 09 August, 2021, 09:09 AM IST | E-Paper
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    CarTrade poised to tap digital shift, but carries a few risks

    The company generates revenue from the lead generation from the automakers and dealers (35%), sales & commission from auctions and remarketing of used vehicles (57%), and the rest from valuation services to banks and insurance companies.

    Synopsis

    The company has raised funds at Rs 1,377 per share in April 2021 from institutional investors, which is about a 17% premium to the issue price. This premium appears to be unwarranted when revenue momentum moderated since then due to the second wave of Covid-19.

    ET Intelligence Group: CarTrade Tech, a multi-channel auto platform company, plans to raise Rs 3,000 crore through its Initial Public Offer (IPO). The entire IPO is an offer for sale (OFS) by private equity investors. Investors with a high appetite for risk and volatility can consider investing in the issue. Increasing purchase of vehicles through the digital medium, an asset-light business model and a profitable history separate CarTrade from
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    The Economic Times