Online auto classified platform CarTrade Tech Ltd on Tuesday said its upcoming initial public offering (IPO) will open for subscription on August 9 and close on August 11. The company has set a price band of Rs 1,585-1,618 per share for the IPO. The initial share sale is entirely an offer for sale (OFS) of 18,532,216 equity shares.
As a part of the OFS, CMDB II will sell 22.64 lakh equity shares, Highdell Investment Ltd will sell 84.09 lakh equity shares, Macritchie Investments Pte Ltd will offload 50.76 lakh shares and Springfield Venture International will divest 17.65 lakh equity shares.
CMDB II currently holds 11.93 per cent stake in CarTrade, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding and Springfield Venture International holds 7.09 per cent stake in the company.
While half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent is reserved for retail investors. The remaining 15 per cent is reserved for non-institutional investors.
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Founded in 2009, CarTrade is backed by Warburg Pincus, Temasek, JP Morgan and March Capital. It allows customers to buy and sell used cars as well as new cars.
The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
The company's consumer platforms - CarWale, CarTrade and BikeWale - got 3.2 crore average unique visitors every month during the 3 months period ending March 31, 2021, while Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY 2021.
The company generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology-based services to original equipment manufacturers, dealers, banks and other financial institutions and inspection and valuation services.
Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Limited are the investment bankers to the issue.
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