CarTrade Tech files IPO papers with SEBI, issue entirely an OFS; key things to know about public issue

CarTrade acquired CarWale in January 2016 and grew its income from Rs 34.7 crore in monetary yr 2016 to Rs 88 crore in monetary yr 2020. Picture: Reuters

CarTrade Tech has filed a draft pink herring prospectus with capital markets regulator SEBI, to launch an preliminary public providing (IPO). The difficulty will likely be fully an offer-for-sale (OFS) comprising 1.23 crore fairness shares. Traders taking part within the supply on the market embody CMDB II (16.07 lakh fairness shares), Highdell Funding (53.79 lakh shares), Macritchie Investments (35.68 lakh shares), Springfield Enterprise Worldwide (11.24 lakh shares) and Bina Vinod Sanghi (1.83 lakh shares). The book-running managers embody Axis Capital, Citigroup World Markets India Non-public Ltd, Kotak Mahindra Capital Firm and Nomura Monetary Advisory and Securities (India) Non-public Ltd. The registrar to the problem is Hyperlink Intime India Non-public Ltd. There are not any listed firms in India that interact in a enterprise just like that of CarTrade.

Key issues to learn about CarTrade IPO

– At present, CMDB II holds 11.93 per cent stake, Highdell Funding 34.44 per cent, MacRitchie Funding Pte., 26.48 per cent and Springfield Enterprise Worldwide holds 7.09% stake within the firm.

– The corporate is a multichannel auto platform with protection and presence throughout car sorts and value-added providers by manufacturers equivalent to CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Alternate, Adroit Auto and AutoBiz, in accordance with DRHP.

– CarTrade acquired CarWale in January 2016 and grew its income from Rs 34.7 crore in monetary yr 2016 to Rs 88 crore in monetary yr 2020. Equally, it additionally acquired 55.43 per cent of the excellent fairness curiosity in Shriram Automall in January 2018.

– For the fiscal yr 2020, the agency reported a complete earnings of of Rs 318.4 crore versus Rs 266.8 crore a yr in the past.

– The objects of the supply are to hold out the OFS, obtain the advantages of itemizing the fairness shares on the inventory exchanges. The corporate won’t obtain any proceeds from the supply and all such proceeds will go to the promoting shareholders.

– CarTrade Alternate and Autobiz are utilized by numerous used and new car sellers to handle their enterprise and improve their firm’s productiveness. CarTrade Alternate is a vendor administration system for used car sellers to handle their processes from procurement to stock administration to gross sales. CarTrade Alternate can also be used as an internet public sale platform by Shriram Automall.

– CarTrade is a expertise firm, comprising superior and complicated expertise platforms, operated by 224 expertise workers as of March 31, 2021. As well as, the corporate has an information science workforce that focuses on using the huge quantity of knowledge captured on their platforms for various functions.