CarTrade Tech IPO is all set to make its stock market place debut on Friday, 20 August 2021, right after the challenge got 20.29 occasions subscription. In the main market place, CarTrade Tech shares fell additional. The grey market place premium has now fallen to Rs 120 from Rs 180, earlier this week, more than the IPO price tag of Rs 1,618. CarTrade Tech shares have been seen trading at Rs 1,738, a 7.4 per cent premium in the grey market place, more than the challenge price tag, according to the folks who deal in shares of unlisted firms.
CarTrade Tech is backed by marquee investors — Warburg Pincus, Temasek, JP Morgan, and March Capital. Amid adverse sentiments in main markets due to below-functionality of not too long ago listed IPOs, CarTrade Tech listing is also probably to get impacted, mentioned an analyst. “CarTrade Tech may list somewhere around Rs 1,725-1,800. Despite, issue looking expensively priced, we may witness fancy after listing too as it has a first-mover advantage. However, in my personal opinion, it’s better to track further performance for a long-term view,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online.
The CarTrade platform enables shoppers to get and sell utilized vehicles as effectively as new vehicles. The firm is a multi-channel auto platform with coverage and presence across automobile kinds and worth-added services via its brands—CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. Analysts say that when the IPO opened on 9 August 2021, the grey market place premium was at Rs 400 or 24.7 per cent, more than the challenge price tag. Since then, it has been volatile and regularly falling and now the grey market place premium is about Rs 170. “In my opinion, overall IPO fever is declining amidst the weakness in broader market indices. This has spoiled the taste of IPOs especially in August month,” Harsh Patidar, Auto Analyst at CapitalThrough Global Research, told TheSpuzz Online.
Harsh Patidar also added that CarTrade’s IPO was oversubscribed, which is really encouraging. “I expect it to give a decent listing gain of 15-20 per cent. Investors who do not worry about short-term volatility can continue to hold this stock for a long run as the company’s fundamentals are strong and it might give impressive returns in the next few years,” he added.
The automotive business in India is hugely competitive. The company’s important competitors involve brands such as Cars24 (Cars24 Services Pvt Ltd), CarDekho and BikeDekho (Girnar Software Pvt Ltd), Droom (Droom Technology Pvt Ltd), and Mahindra First Choice Wheels Ltd. Analysts at Hem Securities count on 5-7% obtain on the listing of CarTrade Tech. “Investors should book partial profit in case of while keep remaining holding for long term as the company being a leading marketplace for automotive sales with a synergistic ecosystem has proprietary end-to-end technology platforms with a focus on data science to provide solutions,” Astha Jain, Senior Research Analyst, Hem Securities. Also, the organization is the only lucrative automotive digital platform amongst peers with asset-light models and decent EBITDA margins, she mentioned.
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