Online auto classified platform CarTrade Tech on Tuesday said it fixed a price band of Rs 1,585-1,618 a share for its nearly Rs 2,999-crore initial public offer. The initial public offering (IPO) will open for subscription on August 9 and conclude on August 11. The bidding for anchor investors will open on August 6, the company announced. The initial share-sale will be entirely an offer for sale (OFS) of 18,532,216 equity shares.
As a part of the OFS, CMDB II will offload 22.64 lakh equity shares, Highdell Investment Ltd will sell 84.09 lakh equity shares, Macritchie Investments Pte Ltd will offer 50.76 lakh sequity shares and Springfield Venture International will divest 17.65 lakh equity shares. Currently, CMDB II holds 11.93 per cent stake in CarTrade43, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding and Springfield Venture International holds 7.09 per cent stake in the company. At the upper end of the price band, the IPO is expected to mobilise Rs 2,998.51 crore.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Founded in 2009, CarTrade is backed by marquee investors -- Warburg Pincus, Temasek, JP Morgan and March Capital. The CarTrade platform allows customers to buy and sell used cars as well as new cars. The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
The company's consumer platforms - CarWale, CarTrade and BikeWale - collectively get 3.2 crore average unique visitors every month (during the 3 months period ending March 31, 2021) and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY 2021. The company generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology based services to original equipment manufacturers, dealers, banks and other financial institutions and inspection and valuation services. Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Limited are the investment bankers to the issue. PTI