CarTrade Tech IPO to open next week

New Delhi: The initial public offering (IPO) of CarTrade Tech will open for subscription on August 9. The price band for the same has been fixed at Rs 1,585-1,618 per share with a face value of Rs 10 each.Mumbai-based CarTrade Tech is a multichannel auto platform with coverage and presence across vehicle types and value-added services. Its platforms operate under several brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.Through these platforms, the company enables new and used automobile customers, vehicle dealerships, vehicle original equipment manufacturers (OEMs) and other businesses to buy and sell their vehicles.The public issue of up to 1,85,32,216 equity shares is a complete offer for sale (OFS) by existing selling shareholders and the company will not receive any proceeds from the issue.At the upper limit of price band, the company is eyeing to raise about Rs 3,000 crore via its primary offering.Investors participating in OFS include CMDB II (22,64,334 equity shares), Highdell Investment (84,09,364), MacRitchie Investment (50,76,761 equity shares), Springfield Venture International (17,65,309 equity shares), Bina Vinod Sanghi (1,83,333 equity shares), Daniel Edward Neary (70,000 equity shares), Shree Krishna Trust (2,62,519 equity shares), Victor Anthony Perry III (50,546 equity shares) and Vinay Vinod Sanghi (4,50,050 equity shares).Investors can make a bid for a minimum of 9 equity shares and in multiples of 9 shares thereafter. The issue closes on August 11 for subscription.50 per cent portion of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be alloted to non-institutional investors (NIIs). Retail investors will have 35 per cent of the issue size earmarked for them.The company claims to be a professionally managed entity without an identifiable promoter. The company is offering its shares at the price/earning ratio of 84.31.Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) have been appointed as book running lead managers (BRLMs) of the issue. Link Intime India is the registrar of the issue.

from Economic Times https://ift.tt/3A8PQTj