CarTrade IPO to open on 9 August, close on 11 August

Online auto classifieds platform, CarTrade Tech. Ltd’s initial public offering (IPO) will open on 9 August and close on 11 August.

CarTrade, which helps users find used as well as new cars, is backed by American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan and March Capital Partners.

The IPO comprises a pure offer for sale of 18.53 million shares by its existing shareholders and promoters. It comprises 2.26 million shares by CMDB II, up to 8.41 million shares by Highdell Investment, up to 5.08 million shares by Macrithie Investments Pte, up to 1.77 million shares by Springfield Venture International and 1.83 lakh shares by Bina Vinod Sanghi.

Currently, CMDB II holds 11.93% stake in the company, Highdell Investment, MacRitche Investment Pte, and Springfield Venture International holds 34.44%, 26.48% and 7.09% stake in the company.

Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital and Nomura Financial Advisory and Securities India are the book running lead managers to the issue.

For the fiscal year 2021, the firm reported a revenue of ₹281.52 crore versus ₹318.44 crore a year ago. Net profit for the period stood at ₹101.07 crore against ₹31.29 crore a year ago.

The company says its platforms, CarWale and BikeWale, ranked number one on relative online search popularity when compared to their key competitors. Its platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

For June 2021 quarter, its consumer platforms, CarWale, CarTrade and BikeWale collectively had an average of 27.11 million unique visitors per month, with 88.14% being organic visitors.

CarTrade had picked up a 51% stake in Shriram Automall in January 2018 for around ₹157 crore. In 2015, it had acquired rival CarWale in a move to consolidate the online auto classifieds industry.