Retail Segment laps up 80 % of CarTrade's IPO on Day 1

CarTrade Tech, a multi-channel auto platform via its several integrated brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and Auto Biz, received bids of 53,00,406 shares against the offered 1,29,72,552 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 0.80 times. While the Qualified Institutional Buyer category was subscribed 0.01 times, the Non-Institutional Investor category was subscribed 0.03 times and the overall Issue was subscribed 0.41 times.

The Offer will be an offer for sale of up to 18,532,216 Equity Shares ("Offer for Sale") by the Selling Shareholders.

The Company raised Rs. 899.55 crores through the Anchor Book. Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF are some of the names amongst the anchor investors.

Axis Capital Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities (India) Private Limited are the appointed lead manager to the Offer.

Company Information

CarTrade Tech is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. The company's platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, CarTrade Tech enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.

The company's consumer platforms i.e. CarWale, CarTrade and BikeWale, collectively get 3.2 crore average unique visitors every month (during the 3 months period ending March 31 2021) and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY 2021.

CarTrade Tech was the only profitable digital auto platform for the financial year 2020 (Source: RedSeer Report). CarTrade Tech is profitable since FY 19.

The company generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology based services to OEMs/Dealers/Banks and other financial institutions and inspection and valuation services.

The company is led by Mr Vinay Vinod Sanghi who is the Chairman, Managing Director and CEO. Key management personnel include Aneesha Menon - Executive Director and Chief Financial Officer, Banwari Lal Sharma - Chief Executive Officer - Consumer Business, Sameer Malhotra - Chief Executive Officer of Shriram Automall, Akshay Shankar - Chief Product Officer - Group and Vikram Alva - Chief Strategy Officer - Group.

It is backed by marquee institutional shareholders that include affiliates of Warburg Pincus, Temasek, JP Morgan and March Capital.

Source : Equity Bulls

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