Plenty of tech firms are gearing up to launch their initial public offerings (IPO). CarTrade, the auto classifieds portal, has submitted its draft prospectus after Zomato’s INR 8,250 crore public offering on 15 May 2021. Cartrade IPO will hit market on 09 August 2021.
Table of Contents
About
CarTrade is among India ‘s most popular automotive websites. With a goal to make car shopping enjoyable, they provide a range of trust-able inputs and facilities to assist car buyers in choosing the perfect car, at the best price, from the ideal vendor.
Workplace
They at CarTrade.com have worked hard over the decades to ensure a fair, engaging, and people-friendly environment. As a result, They’ve become the nation ‘s major automotive marketplace.
However, they’re still on the search for folks who believe in placing the consumer first while also adjusting to developing circumstances and aiming for perfection
Business
The business of CarTrade.com can be classified into 3 categories:
- CarTrade.com is an automobile platform that allows customers to purchase and sell new and old vehicles. Business-to-business (B2B) and business-to-consumer (B2C) activities are supported by this Portal.
- CarTrade Exchange is a dealer network that assists them in handling their businesses. This distributor site for B2B transactions helps distributors to track their digital transactions and sales.
- In addition to its online marketplace, it has a regional operations in India, with a chain of over 5,200 distributors spread across 90 cities. Over 2,36,000 registered used vehicles are presently listed on the platform.
Fund Raising
CarTrade has secured 307.4 million in investment over the course of eight rounds. Their most recent round of investment was a Venture – Series on April 12, 2021.
CarTrade is backed by a group of nine investors. The most latest participants are IIFL and Malabar Investment Advisors.
Acquisition
On November 11, 2015, CarTrade bought CarWale. They paid 90 million for CarWale.
Cartrade IPO
Cartrade Tech Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 12,354,811 Equity shares on 15 May 2021.
The Offer includes no fresh equity issue and an offer for sell(OFS) of 12,354,811 Equity shares by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 26 July, 2021 to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 1,882.02 | 1,470.41 | 1,427.09 | 1,357.08 | |
| Total Revenue | 189.61 | 318.45 | 2 66.81 | 149.53 | |
| Profit After Tax | 85.05 | 31.29 | 25.92 | (6.88) | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 5.65 | 5.07 | 3 |
| Financial Year 2019 | 4.31 | 3.87 | 2 |
| Financial Year 2018 | (2.35) | (2.35) | 1 |
| Weighted Average | 3.87 | 3.44 | |
| (9 months) Dec. 31, 2020 | 19.06 | 17.27 | – |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the Issue
- Dominant Automotive Sales Marketplace with a Synergistic Ecosystem
- Efficient Platform Influences Powered by Successful Brands and Outstanding Client Satisfaction
- End-to-end integrated technology systems
- Work on Data Science to Deliver Outstanding Performance
- Business Strategy is Successful and Sustainable
- Leadership Team is Headed by the Founder
Cartrade IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to ours. As a result, providing an industry comparison in respect to our Company is not feasible.
CarTrade IPO Details
| IPO Opening Date | 09 August 2021 |
| IPO Closing Date | 11 August 2021 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 1585 to 1618 per equity share |
| Market Lot | 9 |
| Min Order Quantity | 9 |
| Listing At | BSE, NSE |
| Issue Size | 12,354,811 Equity shares |
| Fresh Issue | 0 |
| Offer for Sale | 12,354,811 Equity shares |
Cartrade IPO Tentative Date
The Cartrade IPO opening date is 09 August 2021, and the closing date is 11 August 2021. The issue may list in 20 August 2021.
| IPO Open Date | 04 August 2021 |
| IPO Close Date | 06 August 2021 |
| Basis of Allotment Date | 16 August 2021 |
| Initiation of Refunds | 17 August 2021 |
| Credit of Shares to Demat Account | 18 August 2021 |
| IPO Listing Date | 20 August 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimal level of 1 lot, based on availability, for every shareholder. |
Cartrade IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Cartrade IPO.
Cartrade IPO GMP
Cartrade IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 19 August 2021 | 150 | 2100 | 200 |
| 18 August 2021 | 186 | 2600 | 250 |
| 17 August 2021 | 191 | 4600 | 500 |
| 16 August 2021 | 200 | 3900 | 350 |
| 15 August 2021 | 210 | 3500 | 400 |
| 14 August 2021 | 170 | 4900 | 550 |
| 13 August 2021 | 150 | 3900 | 450 |
| 12 August 2021 | 130 | 2300 | 250 |
| 11 August 2021 | 210 | 1100 | 100 |
| 10 August 2021 | 330 | 2200 | 200 |
| 09 August 2021 | 420 | 3500 | 300 |
| 08 August 2021 | 495 | 3800 | 400 |
| 07 August 2021 | 535 | 2800 | 350 |
| 06 August 2021 | 525 | 5400 | 600 |
| 05 August 2021 | 669 | 4500 | 550 |
| 04 August 2021 | 649 | 2900 | 300 |
| 03 August 2021 | 705 | 2500 | 250 |
| 02 August 2021 | 735 | 1500 | 200 |
| 01 August 2021 | No Trade | No Trade | No Trade |
| 31 July 2021 | No Trade | No Trade | No Trade |
Check Out The GMP Of other IPOs
Cartrade IPO Review
Positives points about the company is that it is a new age business, profit making company, cash rich, debt free. While Negatives points about the company Too much competition & Expensive Valuations. You can apply for small listing gains or for long term view.
Cartrade IPO Risk
- A broad reduction in individual automobile ownership or unexpected drops in demand for particular types of vehicles might have a negative impact on them.
- It’s unclear how much the COVID-19 epidemic will influence their business in the future.
- Their technological platforms may be subject to interruptions, malfunctions, or breaches.
- Their failure to secure personal details and other data, whether real or imagined, might harm their reputation.
- They may be harmed if vendors or buyers of used automobiles advertised on their platforms engage in fraudulent conduct.
- Failure to preserve, defend, and enhance their brands’ identification and reputation might limit their ability to retain and grow their consumer base.
Other Threats
- They may be unable to obtain, use, and retain their domain names and trademarks.
- If their websites do not rank well in organic search results or are removed from app stores, traffic to their websites and applications may suffer.
- Their inability to produce high-quality material on CarWale, CarTrade, and BikeWale might hurt their business.
- Their business will suffer if they do not retain or grow their consumer base.
- A rise in rivalry among automobile digital platforms might have a negative impact on their profitability.
- Acceptance of their internet service as a viable platform for automobile sales and purchases may decline or freeze.
Cartrade IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Cartrade IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 09 August 2021 | 1 | 0.01 | 0.03 | 0.80 | N/A | 0.41 |
| 10 August 2021 | 2 | 0.59 | 0.27 | 1.53 | N/A | 0.99 |
| 11 August 2021 | 3 | 35.45 | 41.00 | 2.75 | N/A | 20.29 |
Principal Shareholders
- Highdell
- MacRitchie
Principal Shareholders’s Total Holding
| Pre Issue Share Holding | 60.92% |
| Post Issue Share Holding |
Cartrade IPO Prospectus
Contact Details
Car Trade Tech Limited
12th Floor, Vishwaroop IT Park, Sector 30A, Vashi,
Navi Mumbai 400 705, Maharashtra, India;
Tel: +91 22 6739 8888
E-mail: [email protected]
Website: www.cartrade.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai 400 083 Maharashtra
Tel: (+91 22) 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
- Nomura Financial Advisory and Securities (India) Private Limited
We hope we are able to answer all your questions about this IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Cartrade IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Cartrade IPO of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Cartrade IPO Opening Date?
Cartrade IPO will open on 09 August 2021.
Cartrade IPO Allotment Date?
Cartrade IPO Allotment Date is 16 August 2021.
Cartrade IPO Listing Date?
Cartrade IPO Listing date is 20 August 2021
Cartrade IPO GMP Today?
Cartrade IPO Grey Market Premium is INR 150.
Cartrade IPO Price Band?
Cartrade IPO price Band is 1585 to 1618.
