CarTrade Tech Listing: Shares of online classifieds platform Cartrade Tech started off weak in the market today. Its shares have been listed on NSE and BSE today on August 20. Its shares are listed at a discount of 1.22 percent i.e. Rs 1599 against the IPO price of Rs 1689. The company’s market capitalization on listing stood at Rs 7333.45 crore. Its IPO got oversubscription almost 20 times. Cartrade Tech’s major competitors are Cars21 (Cars24 Services Pvt Ltd), CarDekho and BikeDekho (Girnar Software Pvt Ltd), Droom (Drum Technology Pvt Ltd) and Mahindra First Choice Wheels Ltd.
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No new shares issued in IPO
The price of Rs 1585-1618 per share was fixed for the Rs 2,999 crore IPO of Cartrade Tech and it was open for subscription from 9-11 August. No new shares have been issued under this IPO and the entire issue was an Offer for Sale (OFS) of 1,85,32,216 equity shares. This IPO got almost 20 times more subscriptions. The portion reserved for retail investors was oversubscribed just 2.75 times.
Cartrade Tech is a multi-channel auto platform
- Cartrade Tech is a multi-channel auto platform that deals in buying and selling of a wide variety of vehicles and provides a range of value added services. Its major brands are CarWale, Cartrade, Shriram Automall, BikeWale, Cartrade Exchange, Adroit Auto and Autobiz. Analysts at Anand Rathi Financial Services had advised to subscribe to this IPO keeping in view the future prospects of the company.
- The growth in revenue and EBITDA of the car trade in the last three years has not been significant. However, PAT (Profit After Tax) increased this year due to tax credit. According to Aditya Kondawar, COO and Founder, JST Investments, the revenue level it took Cartrade Tech to reach in 11 years, Cars24 has reached in just 5 years, showing signs of a tough competition. Apart from this, Cartrade Tech is facing tough competition from ride-hailing services, car leasing services, other online resellers, unorganized resellers and car manufacturers providing their subscription services.
(Article: Surbhi Jain)