CarTrade IPO to open today, price band between 1,585-1,618 a share

CarTrade is among four companies launching their respective IPOs this week. Together, they plan to raise over 14,628 crore. So far in the current fiscal, 16 companies have raised 30,666 crore through IPOs against 31,277 crore by 30 firms in the entire 2020-21.
Through IPOs, companies like CarTrade are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes.(Representative Photo)
Through IPOs, companies like CarTrade are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes.(Representative Photo)
Published on Aug 09, 2021 06:05 AM IST
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Byhindustantimes.com | Edited by Amit Chaturvedi, Hindustan Times, New Delhi

Online auto classified platform CarTrade Tech will launch its initial public offering (IPO) on Monday. The public issue has a price band of 1,585-1,618 a share, and will open for subscription for three dys - from August 9 to August 11.

At the upper end of the price band, the IPO is expected to mobilise 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 for non-institutional investors.

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.

Ahead of the IPO launch, the company said on Friday that it has raised 900 crore from anchor investors, which include Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF.

CarTrade was founded in 2009. It allows customers to buy and sell used cars as well as new cars. It includes other brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

The company generates revenues from commission and fees from auctions and re-marketing services, online advertising solutions, lead generation, technology-based services to OEMs, dealers, banks and other financial institutions, and inspection and valuation services.

CarTrade is among four companies which are launchign their IPOs this week. Cumulatively, these initial share sales are expected to raise over 14,628 crore.

So far in the current fiscal, 16 companies have raised 30,666 crore through IPOs against 31,277 crore by 30 firms in the entire 2020-21.

The companies are raising funds to retire their debt, funding capital expenditure requirement and for general corporate purposes. Besides, existing shareholders are divesting their stakes in the IPOs.

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Saturday, December 04, 2021