Car Trade IPO

Jayanth Kura

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About Company

Car Trade Limited is an online marketplace for online users who are looking to buy and sell new and used vehicles. It has been 11 years since this company was founded by Vinay Sanghi and Rajan Mehra.

In November 2015 CarTrade.com acquired CarWale and Bikewale, Shriram Automall, AdroitAuto. And it operates as business-to-consumer operations. More than the online marketplace, it has a physical presence with a network of over 4,000 merchants to the other side of 80 cities in India. Next to car listings, the portal offers certified car price information, insurance, on-road prices, Car Trade is also providing similar services for bikes on BikeWale.com. Through these platforms, enables new and used automobile customers, vehicles dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner. The company’s sight is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders.

The automotive ecosystem is highly complex. The process of buying vehicles requires the buyers to go through different channels. The inefficiencies in the ecosystem do highlight the opportunity for an online buy/selling marketplace to bring together and match the right vehicle buyers to the right vehicle sellers on a single platform.

The company has large data set on vehicles in India. Its websites and apps handled approximately 1.76 million and 21.15 million users’ sessions per day for the three months ended June 30, 2021, March 31, 2021, respectively, and directly delivers the relevant data into systems.

In the three months ended June 30, 2021, CTTLS consumer platforms, had an average of 27.11 million different visitors per month, with 88.14% being organic visitors as a result of unpaid searches.

Supporter

Car Trade Tech is an executive head company with no known backer.

Objectives

· To reach the benefits of listing the shares on the stock exchanges. · To move out an offer for sale

How to apply in Car Trade Tech IPO?

You can apply in Car TRADE IPO application is offered by brokers. And, from UPI as a payment method. IPO application is available in the net banking of your account.

Allotment

IPO will be done on Aug 17,2021, and shares will be credited to your Demat account by Aug 20, 2021. Financial Performance The financial performance of the company has posted a turnover net profit of RS266.81cr. (Fy19) RS.31.29cr. (FY20) and RS 101.07cr. (FY21).

Earnings for FY21 despite lower top line is attributed to tax credit amounting RS. 63.87cr.However, if we exclude this, then the next may be around RS37.20cr. Super earnings of FY21 on its equity, then the asking price is at of around 73.38 and if we exclude accounting adjustments for deferred tax and attribute it on equity, then the asking price is at around 199.26. Thus, the issue is priced exorbitantly.

ISSUE DETAILS

It is coming out with a price band of RS 1585 per share. Thus, CTTL will mobilize around RS 2998.51 cr. At the upper price band of the issue, the issue opens for subscription on August 9, 2021, and will close on August 11, 2021. When the users have subscribed to the ipo then the allotment of shares begins. Shares will be listed on BSE and NSE both. The issue constitutes 40.43% of the post issue paid-up capital of the company. The company allocated 50% for QIBS, 15% for HNIS and 355% for retail investors.

The average cost of acquisition of shares by the promoter stakeholder is RS10.00. And goes up to the RS604.82 per share.

LISTED PEERS

As per the documents, the company has no listed peers.

Track records

It has 36 Public Issues that have been handed in the past three years out of which 9 were below the issue price.

Conclusion

Following seeing the recent insanity for dropping companies IPOS, this profit-making company IPO is set to give rise to more fancy. The only awareness is the exorbitant pricing it is asking for being the first mover in the segment to go for listing. Therefore cash surplus seekers may consider investing in this IPO.