CarTrade Tech IPO to close today: What experts say on investing in it

The three-day IPO opened on Monday and, as of August 10, the second day of bidding, had received 12,890,934 bids for 12,972,552 shares which were put for sale.

The three-day initial public offering (IPO) of CarTrade Tech will end on Wednesday. The IPO, which opened on Monday, had, till August 10, received 12,890,934 bids for 12,972,552 shares which were put for sale, news agency PTI has reported quoting data available with the stock exchanges. This means that it had received subscription of more than 99% till Tuesday, the second day of bidding.

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As it enters its final day, here’s what experts’ opinion is on investing in CarTech’s IPO, courtesy Financial Express. According to Anand Rathi Financial Services Limited, though it seems that the company’s shares have been valued higher than they should be, investors should subscribe to it considering future possibilities. The investment, according to the company, should be made keeping in mind mid to long-term goals.

Nirmal Bang, too, has recommended investing in the IPO. “Since CarTrade Tech is the only company in the country to make profit in vehicle platform space, it is expected that the company will maintain its growth in future as well. Its balance sheet also looks good. Therefore, investment in CarTrade Tech is a good opportunity,” said analysts from Nirmal Bang.

However, Axis Capital did not give any rating to the IPO because of strong competition to CarTech in the Indian automotive industry though it admitted that the company’s technology platform is both modern and sophisticated.

CarTrade, which was founded in 2009, allows customers to buy and sell used, as well as new cars. It offers value-added services through its brands, such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. The platform is backed by marquee investors like Warburg Pincus, Temasek, JP Morgan and March Capital