The initial public offer (IPO) of CarTrade Tech has been subscribed 0.38 times on August 9, the first day of bidding.
According to the subscription data available on the exchanges till 16:20 IST, the offer has received bids for 43,70,967 equity shares against the IPO size of over 1,29,72,552 equity shares.
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 an 11.93 per cent stake in CarTrade, Highdell Investment owns a 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.
"Considering the FY-21 adjusted EPS of Rs.22.06 on a post-issue basis, the company is going to list at a P/E of 73.35 with a market cap of Rs.74,160 mn. There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the company," said analysts at Marwadi Shares and Finance Limited.
"We assign “Subscribe” rating to this IPO as the company has a profitable and scalable business model with a focus on data science to provide superior solutions and is well-positioned to benefit from the growth of the automotive sector and digitalization," they added.
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 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.
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