Used Car Trade View For Sale: CarTrade IPO shares debut at Rs 1,600, a 1.1% discount on the issue price

Used Car Trade View For Sale: The public offer had received a healthy response from investors last week as it was oversubscribed by 20.29 times during August 9-11.

Shares in multi-channel automotive platform CarTrade Tech got off to a weak start, with the stock listed at a 1.11% discount for an issue price of Rs 1,618 per share. The action opened at Rs 1,600 on BSE and Rs 1,599.80 on the National Stock Exchange.

As of 10:03 am IST, it was trading at Rs 1,575.05 on the NSE, down 2.7% on the NSE, and down 2.2% to Rs 1,582.45 on the BSE.

Cumulatively, it traded with a volume of 36.82 lakh shares on the stock exchanges.

The public offering received a positive response from investors last week, as it was oversubscribed 20.29 times from August 9 to 11. The portion reserved for qualified institutional buyers was subscribed 35.45 times and that of non-institutional investors was subscribed 41 times. The commercial portion has been booked 2.75 times.

The company had mopped off Rs 2,998.51 crore with its IPO. This was a full sale offer by selling shareholders including CMDB II of JP Morgan, Highdell Investment, Macritchie Investments, and Springfield Venture International.

CarTrade Tech is a multi-channel automotive platform with coverage and presence on all types of vehicles and value-added services, providing services through platforms under multiple brands – CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.

The majority of the brokerage firms had recommended subscribing to the show as it enjoys the first-mover advantage in the industry, provides a full range of services, and provides a dealer management system to BMW India.

The CarWale, CarTrade, and BikeWale platforms are used by buyers to find and connect with dealers, original equipment manufacturers (OEMs), etc. to sell and buy cars and 2-wheelers. Shriram Automall (a subsidiary) facilitates the sale of used vehicles. CarTrade Exchange is an online auction platform and ERP tool for used vehicles, also used by dealers to manage their processes such as sourcing, inventory management, and CRM. Adroit Auto offers vehicle inspection and assessment services while AutoBiz provides CRM solutions to new car dealers.

“Considering the company’s future prospects, its scalable business model, profitable operations and business growth opportunities in the automotive sector value chain and it is also positioned at an ideal point as an advantage of the first engine, so we recommend “subscribing” to the problem, ”BP Equities said.

In the fiscal year ended March 2021, the company generated 57% of total revenue from commission and auction fees, used vehicle remarketing services. Online advertising solutions on its portals as well as lead generation for equipment manufacturers, resellers, etc.

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

BP Equities has subscribed to the long-term rating of the issue. “CarTrade is actively investing in improving its technology, such as its artificial intelligence (AI) and machine learning capabilities, in order to deliver more relevant and timely information to its customers and improve the user experience. . Its full range of services including buying, selling, auto financing, marketing, etc. and a profitable and scalable business model provide additional visibility into growth, ”he explained.

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