A host of technology companies are lining up to float their initial public offerings
A host of technology companies are lining up to float their initial public offerings. After Zomato’s ₹8,250- crore public offer, auto classifieds platform CarTrade is now set to file its draft prospectus, said two people, requesting anonymity.
“They are ready to file the DRHP. Final touches are being put on the document. It should happen in the next 10-15 days. This will be the first online auto classifieds company to go public in India," said one of the two people cited above. CarTrade will is looking to raise ₹2,000 crore, he added.
“It will be a mix of primary and secondary share sale. Investment banks Citi, Nomura, Axis Capital and Kotak Mahindra Capital are advising CarTrade on the IPO," he said.
An email query to CarTrade founder Vinay Sanghi did not elicit a response.
CarTrade is backed by American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan and March Capital Partners.
The platform allows customers to buy and sell used as well as new cars, and discover and review offerings by auto companies. The company runs CarTrade.com, Carwale.com and Bikewale.com. It also offers services, such as automobile inspection, valuation, certification and other related services through Adroit, and Shriram Automall India Ltd, a platform for pre-owned commercial vehicles, passenger vehicles, construction and industrial equipment, tractors and agricultural equipment, and three- and two-wheelers.
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.
“The pandemic has given a strong push to personal mobility as has been seen by the auto sales numbers in the last couple of quarters. It has also made digital a very prominent channel for buying and selling cars. These trends will provide tailwinds for the company to grow stronger in the coming years," said the second person cited above.