Cartrade Tech Ltd IPO

Current

IPO Synopsis

CarTrade Tech Ltd., India's leading online auto classifieds platform serving as a marketplace for buyers and sellers interested in buying/selling new and used vehicles. According to the DRHP filed with SEBI, the total issue size of CarTrade IPO is going to be Rs 2,998.51 crore. The issue will open on August 9th and closes for subscription on August 11th. 

CarTrade IPO comprises a pure offer for sale of 18,532,216 Equity shares by its existing shareholders and promoters. 

The CarTrade Tech IPO market lot size is 9 shares. A retail-individual investor can apply for a minimum 1 lot (9 shares or ₹14,265) and a maximum up to 13 lots (117 shares or ₹185,445).

 

CarTrade Shareholding Pattern

 

% Shareholding

Pre- IPO(%)

Post-IPO(%)

Promoter & Promoter Group

-

-

Private Equity Investors

83.82

45.60

Company Insiders

5.42

3.20

Public

10.76

51.19

 

Offer Details:

The offer comprises of an offer for sale. The offer for sale is comprised of 18,532,216 shares amounting to ~ ₹2,998cr and the proceeds would directly go to the selling shareholder. The objective of the issue is to achieve the benefits of listing the equity shares on the stock exchanges.

About Cartrade Tech Ltd

CarTrade Tech Limited is a multi-channel auto platform with coverage and presence across vehicle types and value-added services (Source: RedSeer Report). The company’s platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, the company enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner. The vision of Cartrade Tech is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders. The company offers a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing of new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles and farm and construction equipment.

Key Points

Competitive Strengths:

Some of the competitive strengths are as follows

Leading marketplace for automotive sales with a synergistic ecosystem:
The platforms of CarTrade Tech, CarWale and BikeWale ranked number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021, while Shriram Automall is one of the leading used vehicle auction platforms based on number of vehicles listed for auction for the financial year 2020. The company offers a variety of solutions across the automotive transaction value chain from discovery and research tools, pricing and auto financing information to connecting consumers with dealers and OEMs for both used and new vehicle purchases. CarTrade Tech also provides vehicle buyers with dynamic, personalized and real-time financing offers from multiple finance providers digitally through their finance platforms. The combination of online and offline auctions as well as related services is synergistic and drives customer traffic, creates competition among their network of professional dealers and helps ensure the best price for their users.

Brands and customer experience driving powerful network effects:
The strength of the CarTrade Tech brands and their association with trust, quality and reliability is a key at-tribute in business, which increases consumer confidence and influences consumption behaviour. The recognizable brands and the quality and reliability of the company’s user experience and interface have led to a consistent growth in consumer traffic across their platforms. The company’s monthly average number of unique visitors was 27.11 million, 25.66 million and 20.51 million in the three months ended June 30, 2021 and the financial years 2021 and 2020 respectively, and had 212,552, 814,316 and 809,428 listings on their online and offline auction platforms for the same periods. The network effects of this brand based growth are significant and create a positive feedback loop. The strong recognizable brands have also allowed us to develop new offerings such as price tools, financing solutions and trade-in solutions.

Focus on data science to provide superior solutions:
The analytics driven decision making is a key competitive advantage. CarTrade Tech analyses vehicle sales that happen through their auctions, as well as vehicles offered for sale by dealers on CarWale, CarTrade and BikeWale using data science and proprietary algorithms based on a number of factors, including vehicle-specific information on automotive transactions, vehicle registration records, consumer buying patterns and behaviour, demographic information, and macroeconomic data. The company’s statisticians and data scientists have developed complex and proprietary algorithms to leverage this data to provide pricing tools, product re-views and market insights as well as reports to consumers, dealers, financial institutions and OEMs through their web and mobile user interfaces in an engaging and easy to understand way. 

Risk Factors:

Some of the risk factors are as follows

1.    Demand for cars sold through the platforms may be adversely affected by trends, like youth opting for ride-sharing services, that will lead to a decline in demand for cars. This can affect the business adversely. 

2.    Any extended period of the pandemic can lead to decline in revenues and can have a material impact on the business. 

3.    Disruptions or failures of their technology platforms can cause significant legal and financial risks and negative publicity, and adversely affect their business and reputation.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

Contact Details of Cartrade Tech Ltd IPO

Contact Information

Address

CarTrade Tech Limited
12th Floor, Vishwaroop IT Park, Sector 30A
Vashi, Navi Mumbai 400 705, Maharashtra, India


Phone: +91 22 6739 8888
Email: investor@cartrade.com
Website: http://www.cartradetech.com/
 

Cartrade Tech Ltd IPO Lead Manager

Link Intime India Private Ltd
   Link Intime India Private Ltd
   C 101, 247 Park, L.B.S.Marg,
   Vikhroli (West), Mumbai - 400083

Phone: +91-22-4918 6270
Email: cartrade.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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