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CarTrade secured Rs 900 cr in Pre-IPO round from anchor investors

CarTrade Tech, an online automobile classified marketplace, announced on Friday that it has secured Rs 900 crore from anchor investors prior to its initial public offering, which is scheduled to commence on Monday. According to a document posted on the BSE official site, the company has agreed to issue 55,59,664 equity shares among its anchor investors for Rs 1,618 each, valuing the trade at Rs 899.55 crore.

Image representing a pen, glasses and papers representing CarTrade Logo on Laptop

Background: Anna Nekrashevich via Pexels × CarTrade Logo

Amongst these anchor investors were Axis Mutual Fund, Aditya Birla Sun Life Insurance Company, Bharti Axa Life Insurance Company, Bajaj Allianz Life Insurance Company, Elara India Opportunities Fund, Goldman Sachs, HDFC MF, HSBC Global, Kotak MF, Jupiter India Fund, Nomura, and Sundaram MF.

First-issue offerings will mainly consist of an offer for sale (OFS) of 18,532,216 equity shares. CMDB II which holds 22.64 lakh equity shares, Highdell Investment Ltd having 84.09 lakh shares, Macritchie Investments Pte Ltd owning 50.76 lakh shares, as well as Springfield Venture International controlling 17.65 lakh shares, are some of the stakeholders in the OFS.

CMDB II presently holds 11.93 percent of CarTrade, while Highdell Investment owns 34.44 percent, MacRitche Investment owns 26.48 percent, while Springfield Venture International owns 7.09 percent in the online automobile classified marketplace.

The subscription period for the public offer, which has a price range of Rs 1,585-1,618 per share, will commence on August 9 and finish on August 11. The IPO is projected to raise Rs 2,998.51 crore at the maximum of the pricing band. Qualified institutional buyers (QIBs) will receive half of the issue size, retail investors will receive 35 percent, whereas non-institutional investors would end up receiving 15 percent.

This June, the company secured Rs 321 crore in a Series H round from HighDell, MacRitchie Investments, and other investors. The company captured overall revenue of Rs 281.52 crores, down from Rs 318.44 crores in FY20. Meanwhile, because of substantial cost-cutting, especially in marketing and promotional expenses, the company’s net profits jumped to Rs 101.07 crore, up from Rs 31.29 crore the preceding year.

CarTrade is an Indian multichannel auto marketplace founded in 2009 by Vinay Sanghi, and Rajan Mehra. It offers both new and used vehicles to customers via its platforms including CarTrade, Carwale, CarTradeExchange, Shriram Automall, Adroit Auto, Auto Biz, as well as BikeWale. CarTrade Tech is comprised of over 40 OEMs, 15,000+ dealers, and 180 independent or franchised outlets. CarTrade is the nation’s only profitable online automotive marketplace as of now.

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