CarTrade Tech IPO: Opens today; Key Details investors should know

The initial public offering (IPO) of the multi-channel auto platform CarTrade Tech will open for subscription today, i.e., Monday, August 9, 2021, and closes on Wednesday, August 11, 2021. The price band for the offer has been fixed at Rs 1,585–1,618 per equity share.

Investors can 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 plans to raise up to Rs 2,998.51 crore through its offer, at the upper end of the price band of Rs 1,618 per share. The IPO is 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.

Besides, the online auto classified platform CarTrade Tech has raised Rs 900 crore from anchor investors on Friday, ahead of its initial public offering, which opens today. It allocated 55,59,664 equity shares to anchor investors at Rs 1,618 apiece, valuing the transaction size to Rs 899.55 crore. Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF are among the anchor investors.

CarTrade Tech is one of India's leading online auto portal for both cars and two-wheelers (2021). The company is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through the brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, AutoBiz and Adroit Auto.

Through these platforms, the company enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner. It has the vision to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders.