With the Zomato IPO sending tremors across the sector and smashing its way into the record books, other firms have set their sights on the public market as well, and are looking to go public. PolicyBazaar was the latest name in this list having announced its IPO just a few days ago. Now, multi-channel auto platform CarTrade Tech, a company that has been preparing to go public for a long time, is set to launch its initial public offering (IPO) for subscription on August 9 and close on August 11. The start-up aims to raise about ₹3,000 crores via its primary offering.
The price band for the IPO has been fixed at ₹1,585-1,618 per share and a face value of ₹10 each. The anchor book, if opened, will be on August 6. However, CarTrade itself will not be receiving any proceeds from the issue since the public issue of up to 1,85,32,216 equity shares is a complete offer for sale (OFS) by existing selling shareholders.
As for its shareholders, Mauritius-based Highdell Investment takes the lead with a stake of 34.44%, followed by MacRitchie Investments with a stake of 26.48%. CMDB II which holds 11.93%, Springfield Venture International with 7.09%, and Vinay Vinod Sanghi, who has a stake of 3.56% in the company.
While half of the net issue is reserved for qualified institutional buyers (QIBs), 15% will be allotted to non-institutional investors (NIIs), and the remaining 35% will be for retail investors.
According to the company, the offer constitutes 40.43% of CarTrade’s post-offer paid-up equity share capital. The firm will disclose the details about the price band and lot size of the IPO in the coming week.
Describing itself as “India’s number one online auto portal” for both cars and two-wheeler (based on relative online search popularity in FY 2021), the 12-year-old CarTrade is known for its coverage and presence across vehicle types and value-added services. It operates many platforms under brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz. The start-up aids new and old automobile customers, vehicle dealerships, vehicle original equipment manufacturers (OEMs), and other businesses to buy and sell their vehicles simply and effectively, and aims to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies, and other stakeholders.
The OFS consists of the sale of 22,64,334 equity shares by CMDB II, 84,09,364 equity shares by Highdell Investment, 50,76,761 equity shares by MacRitchie Investments Pte Ltd, 17,65,309 equity shares by Springfield Venture International, 1,83,333 equity shares by Bina Vinod Sanghi (jointly held with Vinay Vinod Sanghi), 70,000 equity shares by Daniel Edward Neary, 2,62,519 equity shares by Shree Krishna Trust, 50,546 equity shares by Victor Anthony Perry III, and 4,50,050 equity shares by Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi).
