CarTrade Tech IPO subscribed 20.29 times on the final day

CarTrade Tech IPO: The initial public offering (IPO) of CarTrade Tech saw a strong response from the investors and was subscribed 20.29 times on the last day of subscription, i.e., on August 11, 2021. The Rs 2,998.51 crore IPO received bids for 26,31,74,823 shares as against the issue size of 1,29,72,552, implying a subscription of 20.29times, according to the NSE data.

Qualified Institutional Buyers (QIBs) portion received 35.45 times subscription, non-institutional investors a whopping 41 times and retail individual investors (RIIs) 2.75 times. Up to 50 per cent of the offer was reserved for qualified institutional buyers, while 35 per cent for retail investors and the remaining 15 for non-institutional investors.

The price band for the offer of the multi-channel auto platform CarTrade Tech was fixed at Rs 1,585–1,618 per equity share. Investors were allowed to bid for a minimum of nine equity shares and in multiples of nine shares thereafter. Retail investors can make a minimum investment of Rs 14,562 per lot, and a maximum investment would be Rs 1,89,306 for 13 lots. Retail investors are allowed to invest only up to Rs 2 lakh in the IPOs. Half of the total offer has been reserved for qualified institutional buyers, 15 per cent for non-institutional bidders, and the remaining 35 per cent for retail investors.

The company has already raised Rs 900 crore from anchor investors by allocating shares at Rs 1,618 per share ahead of its initial public offering.

The IPO was a complete offer for sale of 1,85,32,216 equity shares by the selling shareholders — CMDB II, Highdell Investment, Macritchie Investments, Springfield Venture International, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi). The company will not receive any proceeds from the offer as it is a complete offer for sale.

Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) are the book running lead managers to the offer. CarTrade Tech will finalise IPO share allotment on August 17, 2021. The refunds will be made on August 18, 2021.

Equity shares will be credited to the DEMAT accounts of eligible investors on August 20, 2021, and the trading in equity shares will commence with effect from August 23, 2021. Equity shares will be listed on the BSE and National Stock Exchange.