CarTrade Tech Limited IPO – Aug 9 to 11

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CarTrade Tech Limited IPO – Aug 9 to 11

August 06, 2021
CarTrade Tech Limited IPO – Aug 9 to 11

CarTrade Tech Ltd. is coming out with a fresh public issue to raise Rs 2,998.51 crores from the market.

Key details of the issue:

  • Issue opens – Aug 9 (Monday)
  • Issue closes – Aug 11 (Wednesday)
  • Issue size – Rs 2,998.51 crores
  • Price band – Rs 1,585 to 1,618 per equity share
  • Bid lot – 9 shares and in multiples thereof

And here are some details of the company and further details on the CarTrade Tech Ltd. issue.

Company details:

CarTrade Tech Limited’s platforms, CarWale and BikeWale, ranked number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021, while Shriram Automall was one of the leading used vehicle auction platforms based on number of vehicles listed for auction for the financial year 2020 (Source: RedSeer Report). Among their key competitors, they were the only profitable automotive digital platform for the financial year 2020 (Source: RedSeer Report).

They are a multi-channel auto platform with coverage and presence across vehicle types and value-added services (Source: RedSeer Report). Their platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, they enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner. Their vision is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders.

They are a multi-channel auto platform with coverage and presence across vehicle types and value-added services (Source: RedSeer Report). They offer a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing of new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles and farm and construction equipment.

They generate revenues from several business streams, primarily comprising:

  • Commission and fees from auction and remarketing services of used vehicles for retail customers, banks and other financial institutions, insurance companies, OEMs, leasing companies, and fleet and individual operators, in the amount of ? 1,424.95 million for the financial year 2021
  • Online advertising solutions on CarWale, CarTrade and BikeWale for OEMs, dealers, banks and other financial institutions
  • Lead generation for OEMs, dealers, banks and other financial institutions and insurance companies
  • Technology-based services to OEMs, dealers, banks and other financial institutions and insurance companies
  • Inspection and valuation services for banks and other financial institutions, insurance companies and OEMs, in the amount of ? 176.92 million for the financial year 2021.

Issue size: Rs 2,998.51 crores

Issue break-up:

  • QIB – 50% of the offer – Rs 1,499.26 crores
  • NIB – 15% of the offer – Rs 449.78 crores
  • RET – 35% of the offer – Rs 1,049.48 crores

Listing: NSE and BSE

Registrar: Link Intime India Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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