CarTrade Tech lists at 1% discount to issue price - Economic Times

NEW DELHI: Shares of Tech made a tepid market debut on Friday as the scrip got listed at Rs 1,599.80 on NSE, a 1.12 per cent discount to its issue price of Rs 1,618.

On BSE, the scrip got listed at Rs 1,600, down 1.11 per cent.

Analysts were largely expecting an 8-15 per cent listing gain for the stock.

CarTrade 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, CarTradeExchange, Adroit Auto, and AutoBiz.

Its IPO was sold in the Rs 1,585-1,618 price band and was subscribed 20.29 times. The quota reserved for qualified institutional buyers (QIBs) was subscribed 35.45 times. The portion for non-institutional investors was subscribed 41 times. The retail individual investors (RIIs) quota witnessed 2.75 times subscription.

The CarTrade platforms allow customers to buy and sell used cars as well as new cars. Founded in 2009, it is backed by marquee investors such as Warburg Pincus, Temasek, JPMorgan and March Capital.

The company's financials were hit in FY21 with sales falling 16 per cent YoY to Rs 249.68 crore from Rs 249.68 crore in FY20. Profit jumped to Rs 101.07 crore (largely led by Rs 54.10 crore in taxes) compared with Rs 31.29 crore profit in FY20. CarTrade turned profitable in FY19 and was the only profitable automotive digital platform for FY20 among key competitors in India. The company, which operates on an asset-light business model, is debt-free and has a history of generating positive free cash flows (FCFs).

Santosh Meena, Head of Research at Swastika

, said that there is a demand for new edge technology stocks. He expected a 10-15 per cent listing gain for the issue and had advised only aggressive investors to hold the stock for the long term.

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CarTrade Tech lists at 1% discount to issue price - Economic Times
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