CarTrade Tech shares made a weak debut on BSE and NSE on Friday, 20 August 2021. CarTrade Tech shares got listed at Rs 1,599, down 1.12 per cent from the IPO of Rs 1,618 apiece. The initial public providing of CarTrade Tech was subscribed a tiny more than 20 instances. On the listing, the market place capitalisation of the firm stood at Rs 7,333.45 crore. CarTrade Tech is backed by marquee investors — Warburg Pincus, Temasek, JP Morgan, and March Capital. CarTrade Tech’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.
The 3-day IPO received bids for 26.31 crore shares against 1.29 crore shares on offer you. The category reserved for certified institutional purchasers (QIBs) received 35.45 instances subscription, even though non-institutional investors 41 instances. The retail person investors (RIIs) quota was subscribed 2.75 instances.
CarTrade Tech is a multi-channel auto platform with coverage and presence across car forms and worth-added services via its brands — CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. Analysts at Anand Rathi Financial Services had offered subscribe rating to the IPO, contemplating the future prospect of the firm and mentioned that it is also placed at a sweet spot as the initially mover benefit.
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In the previous 3 years, Revenue and EBITDA for Car Trade haven’t grown meaningfully. PAT jumped this year which was only optical as there was a tax credit, mentioned an analyst. “When we talk about peers, Cars24 took 5 years to reach the same revenue as CarTrade Tech who took 11 years which shows the hyper scale-up threat. It also faces competition from ride-hailing services, car leasing services, other online resellers, unorganized resellers, and even car manufacturers who started their own subscription services,” Aditya Kondawar, Founder, COO, JST Investments, told TheSpuzz Online.