Block deal today: Cartrade Tech shares may react as 2 shareholders likely to offload up to 13% stake

Shares of CarTrade Tech Ltd on Monday are likely to see some action following reports that two shareholders Highdell Investment and MacRitchie Investments Pte would be selling a combined up to 13 per cent stake in the company via block deals today. The floor price is set at Rs 820, which is at 4.3 per ecnt discount to Friday's closing price.

The block deal is valued at Rs 400 crore with an option to increase the size by an additional Rs 100 crore, CNBC-TV18 reported quoting sources. The lock-up period for this transaction is 75 days, the report suggested.

Highdell Investment is likely to sell 7 per cent stake while MacRitchie Investments could sell 3.4 per cent stake with an upsize of 1.7 per cent and 0.9 per cent, respectively.

The Cartrade stock is down nearly 5 per cent in the past one month. It is still up 19 per cent year-to-date.

Cartrade Tech recently reported an inline Q4 sales but its Ebitda was ahead of analyst estimates. Nomura India in a note last month expected Cartrade Tech to log a healthy 20 per cent revenue CAGR (FY24-26F) in the consumer/OLX businesses as OEMs spend more on higher new car inventory and stronger value proposition with OLX in the used car segment.

"Better execution in OLX may drive further upside. High operating leverage is likely to drive a 25 per cent PBT CAGR in FY24-26F. FCF generation should also improve sharply to Rs 220 crore/Rs 240 crore in FY25/ 26F implying FCF yield of 6 per cent, which is quite attractive," it said.