CarTrade Tech makes tepid market debut; tumbles 7% at close of trade
CarTrade Tech made a tepid debut on the bourses on Friday. The stock got listed at Rs 1,600 per share, a 1 per cent discount to its issue price of Rs 1,618 apiece. The stock corrected further and ended the session at Rs 1,500, a 7 per cent discount over the issue price.
CarTrade Tech’s initial public offering (IPO) was subscribed 20.29 times. The institutional investor portion was subscribed 35 times, the wealthy investor portion 41 times, and the retail investor portion 2.75 times.
The IPO was an offer-for-sale worth Rs 2,998 crore. The company had raised Rs 900 crore from anchor investors ahead of its issue. Post listing, the company now commands a market capitalization of Rs 6,875 crore. There was some institutional buying in the stock post listing, Goldman Sachs Trust, Jupiter India Fund and Plutus Wealth Management bought shares worth Rs 275 crore.
CarTrade Tech, through its platforms, enables new and used automobile customers, vehicle dealerships, vehicle original equipment manufacturers (OEMs), and other businesses to buy and sell their vehicles. The company operates its platforms under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.
According to the company’s offer documents, CarWale and BikeWale were ranked number one on relative online search popularity compared with their competitors in financial year 2021. Shriram Automall is one of the leading used vehicle auction platforms based on the number of vehicles listed for auction for 2020. And was the only profitable automotive digital platform for the FY20 among its key competitors, according to a RedSeer report.
Nuvoco Vistas and Aptus Value Housing Finance will make their market debut on Monday.
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