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CarTrade Tech IPO opens Monday: Key things to know before applying – Economic Times

New Delhi: Amidst the solid frenzy in the primary market, the issue of ‘profitable digital play’ CarTrade Tech is set to open on Monday.

Mumbai-based CarTrade Tech is a multichannel mobility platform that is looking to raise about Rs 2,999 crore from the primary market. Here are key things that you should know about the IPO.

  1. When will CarTrade Tech IPO open for subscription?
    CarTrade Tech IPO will open for subscription on Monday, August 9, and will close on Wednesday, August 11.
  2. What is the price band for CarTrade Tech IPO?
    The price band for CarTrade Tech IPO has been fixed at Rs 1,585-1,618.
  3. What is the lot size for CarTrade Tech IPO?
    Investors can subscribe to the initial public offering (IPO) by betting for a minimum of 9 shares or in multiples thereof. A single lot of the IPO is worth Rs 14,562 at the upper range of price band. Retail investors can bid for a maximum of 13 lots.
  4. What is the issue size of the CarTrade Tech IPO?
    The issue is entirely an offer for sale (OFS) of up to 18,532,216 equity shares worth Rs 2,998.51 crore by promoters and existing shareholders.
  5. Who are the investors offloading the stake in the CarTrade IPO?
    Investors participating in OFS include CMDB II, Highdell Investment, MacRitchie Investment, Springfield Venture International, Bina Vinod Sanghi, Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III and Vinay Vinod Sanghi.
  6. What is the quota reserved for retail investors in CarTrade Tech IPO?
    50 per cent portion of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be allotted to non-institutional investors (NIIs). Retail investors will have 35 per cent reserved for them.
  7. When will the basis of allotment be finalised for CarTrade Tech IPO?
    The finalisation of the basis of allotment is likely by August 17 and the initialisation of refunds is likely by August 18. Meanwhile, credit of shares in the demat account is likely by August 20.
  8. What is the listing date of CarTrade Tech?
    CarTrade Tech listing is likely by August 23.
  9. Where can we check CarTrade Tech IPO allotment status?
    Bidders can check the subscription status on the online portal of Link Intime India Private Limited, the registrar to the IPO.
  10. Who are the leading book managers to the issue?
    Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) have been appointed as book running lead managers (BRLMs) of the issue.
  11. What does CarTrade Tech Corporation do?
    Mumbai-based CarTrade Tech is a multichannel automobile platform with coverage and presence across vehicle types and value-added services. Its platforms operate under several brands – CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.Through these platforms, the company enables new and used automobile customers, vehicle dealerships, vehicle original equipment manufacturers (OEMs) and other businesses to buy and sell their vehicles in a simple and efficient manner.
  12. What is the valuation of CarTrade Tech IPO?
    At the upper end of the price band, the IPO is offered at 4.4 times price-to-book value (P/BV) and 29.6 times (EV/sales) and 73.4 times price to earnings (P/E).
  13. How many unique visitors did CarTrade Tech have in the financial year 2021?
    CarTrade Tech had 2.6 crore monthly average unique visitors on its websites and apps in FY21, of which 88.4 per cent were organic, from unpaid sources. It featured 8.14 lakh vehicle listings on its online and offline auction platforms.As of FY20, the total addressable market for Indian automotive portals was estimated at $14.3 billion, of which CarTrade and its key competitors together held 5 per cent market share.
  14. Who are the listed peers of CarTrade Tech?
    There are no listed peers for CarTrade Tech. However, the company is doing better compared with its unlisted peers in terms of financial, said Amarjeet Maurya, AVP for Midcaps at Angel Broking.