The public issue of CarTrade Tech, a multi-channel auto platform provider, has subscribed 20.29 times, as it has garnered bids for 26.31 crore equity shares against IPO size of 1.29 crore equity shares on August 11, the final day of bidding.
The reserved portion of qualified institutional buyers witnessed 35.45 times subscription, and a part set aside for non-institutional investors was subscribed 41 times.
Retail investors continued to provide good support to the offer as their portion was subscribed 2.75 times.
The company that operates brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz, aims to raise Rs 2,998.51 crore through initial public offering. It is a complete offer for sale by marquee investors CMDB II, Highdell Investment, Macritchie Investments, and Springfield Venture International. Among others, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, and Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi) are also selling shares through IPO.
Also read - CarTrade Tech IPO opens; 10 key things to know
CarTrade Tech is India's number one online auto portal for both cars and two-wheelers, based on relative online search popularity in FY21, and is a leading used vehicle auction platform based on number of vehicles listed for auction for FY20. Among their key competitors, they were the only and most profitable automotive digital platform.
Further, "CarTrade actively invests in improving their technology such as their AI and machine learning capabilities in order to provide more relevant and timely information to their customers, and enhance user experience. In addition to the above, they have provided a dealer management system (DMS) to BMW India to support all BMW dealers in India run their used car businesses in an efficient and digitally-optimized manner," said BP Equities which has given a 'subscribe' rating on this issue for the long term.
Apart from above, the brokerage further said, "its comprehensive range of services i.e. automotive buying, selling, financing, marketing, etc and profitable and scalable business model provide for further growth visibility.
On the valuation front, at the upper price band of Rs 1,618, the company is valued at 73.3x P/E considering the diluted equity shares and FY21 annualized earnings, the brokerage feels.
In the grey market, CarTrade Tech shares traded at a premium of Rs 150, which reduced significantly from Rs 320 in previous day, the IPO Watch data showed. This resulted into a trading price of Rs 1,768, rising 9.3 percent compared to issue price of Rs 1,618.
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