CarTrade Tech files IPO papers with SEBI, fully issues OFS; key things to know about public policy issues

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CarTrade acquired CarWale in January 2016 and increased its revenue from Rs 34.7 crore in fiscal 2016 to Rs 88 crore in fiscal 2020. Image: Reuters

CarTrade Tech has filed a draft red herring prospectus with financial market regulator SEBI, in order to launch an initial public offering (IPO). The issue will be entirely an offer to sell (OFS) comprising 1.23 crore of shares. Investors participating in the sale offer include CMDB II (16.07 lakh shares), Highdell Investment (53.79 lakh shares), Macritchie Investments (35.68 lakh shares), Springfield Venture International (11.24 lakh shares) and Bina Vinod Sanghi (1.83 lakh shares). Those responsible for bookkeeping include Axis Capital, Citigroup Global Markets India Private Ltd, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Ltd. India which carry out a business similar to that of CarTrade.

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Key points to know about the CarTrade IPO

– Currently, CMDB II holds 11.93% of the capital, Highdell Investment 34.44%, MacRitchie Investment Pte. 26.48% and Springfield Venture International owns 7.09% of the company’s capital.

– The company is a multi-channel automotive platform with coverage and presence on all types of vehicles and value-added services through brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz, according to DRHP.

– CarTrade acquired CarWale in January 2016 and increased its revenue from Rs 34.7 crore in fiscal 2016 to Rs 88 crore in fiscal 2020. Likewise, it also acquired 55.43% of the outstanding stake in Shriram Automall in January 2018.

– For fiscal 2020, the company reported total income of Rs 318.4 crore compared to Rs 266.8 crore a year ago.

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– The objects of the offer are to carry out the OFS, to obtain the advantages of the listing of shares on the stock exchange. The Company will not receive any proceeds from the Offering and all such proceeds will go to the Selling Shareholders.

– CarTrade Exchange and Autobiz are used by a large number of used and new car dealers to manage their business and increase the productivity of their business. CarTrade Exchange is a dealership management system for used car dealers to manage their processes from sourcing to inventory management to sales. CarTrade Exchange is also used as an online auction platform by Shriram Automall.

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– CarTrade is a technology company, comprising advanced and sophisticated technology platforms, operated by 224 technology employees as of March 31, 2021. In addition, the company has a data science team that focuses on the use of the large amount of data captured on their platforms for different purposes.

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