CarTrade shares make a weak debut, list below issue price

CarTrade shares make a weak debut, list below issue price

Shares of CarTrade made a weak stock market debut on Friday by listing at ₹1,599.8 per share on the NSE, a discount to its issue price of ₹1,618 apiece. On BSE, CarTrade shares were trading around ₹1,579, down more than 2% from its IPO issue price. The scrip hit a low of ₹1,476 in early deals.

The initial public offer (IPO) of the online auto classified platform was subscribed 20.29 times on the closing day of the subscription. The three-day issue that closed on August 11, received bids for 26,31,74,823 shares against 1,29,72,552 shares on offer, as per exchanges data. The category for qualified institutional buyers (QIBs) received 35.45 times subscription, while the portion for non-institutional investors was subscribed 41 times. The retail individual investors (RIIs) quota was subscribed 2.75 times.

Santosh Meena , Head of Research, Swastika Investmart said that CardTrade debuted secondary market on weak note amid risk-off sentiment in equity markets. “There were some concerns like 100% FPO and low entry barrier business therefore we recommended investors to subscribe to it only for listing gain as new edge tech companies are in demand but the listing is disappointing where we advise only aggressive investors to hold this stock in their portfolio otherwise many other good opportunities are available in the market," Meena said.

The CarTrade platform allows customers to buy and sell used cars as well as new cars. The IPO comprised a pure offer for sale (OFS) of 18.53 million shares by existing shareholders and promoters. The company had raised ₹900 crore from anchor investors ahead of its issue.

Rahul Sharma, Co- Founder, Equity99 said, “CarTrade Tech Ltd is a multi-channel auto platform provider company. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles. The company offers a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.”

The company generates revenues from commission and fees from auctions and re-marketing services, online advertising solutions, lead generation, technology-based services to OEMs, dealers, banks and other financial institutions, and inspection and valuation services. Founded in 2009, CarTrade is backed by marquee investors – Warburg Pincus, Temasek, JPMorgan, and March Capital.

The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands, CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz.

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CarTrade IPO shares debut at Rs 1,600, a 1.1% discount to issue price

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Multi-channel auto platform CarTrade Tech shares made a weak debut as the stock listed with a 1.11 percent discount to issue price of Rs 1,618 per share. The stock opened at Rs 1,600 on the BSE and Rs 1,599.80 on the National Stock Exchange.

At 10:03 hours IST, it was trading at Rs 1,575.05 on the NSE, down 2.7 percent on the NSE, and was down 2.2 percent at Rs 1,582.45 on the BSE.

Cumulatively, it traded with volume of 36.82 lakh equity shares on the bourses.

The public offer had received healthy response from investors last week as it was oversubscribed by 20.29 times during August 9-11. The portion set aside for qualified institutional buyers was subscribed 35.45 times and that of non-institutional investors saw 41 times subscription. The retail portion was booked 2.75 times.

The company had mopped up Rs 2,998.51 crore through its IPO. It was a complete offer for sale by selling shareholders including JP Morgan’s CMDB II, Highdell Investment, Macritchie Investments, and Springfield Venture International.

CarTrade Tech is a multi-channel auto platform with coverage and presence across vehicle types and value-added services, providing services through platforms under several brands - CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

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Majority of brokerages had recommended to subscribe the issue as it enjoyed the first mover advantage to list in the sector, provides comprehensive range of services, and provides dealer management system to BMW India.

CarWale, CarTrade and BikeWale platforms are used by shoppers to research and connect with dealers, original equipment manufacturers (OEMs), etc, to sell and buy cars and 2-wheeler. Shriram Automall (a subsidiary) facilitates sale of pre-owned vehicles. CarTrade Exchange is an online auction platform and a used vehicle ERP tool, also used by dealers to manage their processes like procurement, inventory management and CRM. Adroit Auto offers vehicle inspection and valuation services while AutoBiz provides CRM solutions to new car dealers.

“Considering the future prospect of the company, its scalable business model, profitable operations and business growth opportunities in the auto sector value chain and it is also placed at a sweet spot as the first mover advantage, thus we recommend to ‘subscribe’ the issue,” said BP Equities.

In the financial year ended March 2021, the company earned 57 percent of total revenue from commission and fees for auction, remarketing services of used vehicles. Online advertising solutions on its portals along with lead generation for OEMs, dealers, etc, and technology-based services combined contributed around 36 percent to revenues, and the rest of income was received via inspection and valuation services.

Among key competitors, it is the only profitable automotive digital platform since FY19.

BP Equities gave subscribe for long term rating for the issue. “CarTrade actively invests in improving their technology such as their artificial intelligence (AI) and machine learning capabilities in order to provide more relevant and timely information to their customers, and enhance user experience. Its comprehensive range of services i.e. automotive buying, selling, financing, marketing, etc and profitable and scalable business model provide for further growth visibility,” it reasoned.

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CarTrade Tech makes a weak debut in stock markets, lists at over 1% below issue price

CarTrade Tech share price: The shares of online auto classified platform CarTrade Tech made a weak debut on the stock exchanges today listing at over 1 per cent lower than their issue price.

The scrip got listed at Rs 1,599.80 apiece on the National Stock Exchange (NSE), thereby registering a fall of 1.12 per cent from its offer price of Rs 1,618.00, while on the BSE, it opened at Rs 1,600.00, down 1.11 per cent from the issue price.

The stock slipped further from its opening rates and touched an intraday low of Rs 1,481.00 on NSE and Rs 1,481.55 on the BSE so far during the first half-hour of trade.

At 10:30 am, the scrip was trading at Rs 1,506.95 on the BSE, down 6.86 per cent from the issue price while on NSE it was at Rs 1,510.80.

Over 61.93 shares of CarTrade Tech were traded on the NSE during the first 30 minutes of trade, while over 2.29 lakh shares exchanged hands on the BSE, data from the respective stock exchanges showed.

The Rs 2,999 crore IPO of the online auto classified platform met a robust demand during its offer period from August 9-11. The issue was subscribed 20.29 times.

Through its platform, the company allows customers to buy and sell used cars as well as new cars. The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands – CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.