CarTrade Tech Limited IPO :- Timeline and Company Financials

CarTrade initiated its business operation in 2000. Since then the company has been carrying out constant expansion plans. CareTrade currently functions under various business names such as CarWale, AutoBiz, CarTradeExchange, Shriram Automall, Bikewale and CarTrade. The company is a link between the seller and buyer. Its major business is related to reselling used and new vehicles.

IPO DETAILS

The CarTrade Tech Limited IPO is set to launch on 9th Aug, 2021. The subscription timeline extends till 11th Aug, 2021. The size for the IPO is 2998.51 Crore Rs. Shares issued through Offer for sale are 2998.51 Crore Rs. No shares are issued through Fresh issue. The minimum lot size is 9 shares and the price is set at 1585 Rs. – 1618 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE 9th Aug, 2021
CLOSING DATE FOR IPO 11th Aug, 2021
ISSUE TYPE Book Built Issue
Face Value per share 10 Rs. per share
IPO price band 1585 Rs. – 1618 Rs.
LOT SIZE 9 shares
MINIMUM ORDER QUANTITY 9 shares
ISSUE SIZE 2998.51 Crore Rs.
OFFER FOR SALE 2998.51 Crore Rs.
FRESH ISSUE No Fresh Issue
LISTING AT NSE, BSE
LISTING DATE 23rd Aug, 2021

IMPORTANT DATES

IPO OPENING DATE 9th Aug, 2021
CLOSING DATE FOR IPO 11th Aug, 2021
IPO ALLOTMENT DATE 17th Aug, 2021
REFUNDS 18th Aug, 2021
DEMAT A/C CREDITED ON 20th Aug, 2021
IPO LISTING DATE 23rd Aug, 2021

The CarTrade Tech Limited IPO begins for subscription from 9th Aug, 2021. The IPO subscription would continue till 11th Aug, 2021. The allotment status for the shareholders who applied would come on 17th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 18th Aug, 2021. The DEMAT accounts of shareholders would be credited on 20th Aug, 2021. The listing of the company would be accompanied on 23rd Aug, 2021.

LEAD MANAGERS

The lead managers are :

  • Nomura Financial Advisory and Securities India Limited
  • Citigroup Global Markets India Private Limited
  • Kotak Mahindra Capital Company Limited
  • Axis Capital Limited

The minimum lot size for the company is decided at 9 shares. This holding accounts to 14562 Rs.. The maximum lot size is decided at 117 shares. This amounts to Rs. 189306. Hence the company’s final holdings would be set as :

  Shares Amount
Minimum 9 shares 14562 Rs
Maximum 117 shares 189306 Rs

OBJECTIVES FOR THE IPO

  • The money from the IPO can also be utilized to meet general corporate purposes.

COMPANY FINANCIALS

Particulars (in Million Rs.) 2020-21 2019-20 2018-19
ASSETS 19301 14704 14270
REVENUE 2815 3184 2668
NET PROFIT 1010 312 259

The financials of the company are not at all positive though the company has constant profits. The value invested into the asset is close to 19500 Crore Rs in 2021 and the profits from it is only 1010 Crore Rs. This amounts to less than 6% return on the investment. Even the revenue of the firm is just 10 to 12% of the assets in 20201. This is the outcome of COVID effects. However in 2019-20 the assets were close to 15000 Crore Rs and the revenue was around 3000 Crore Rs. This is 25% of the money invested. This seems very low when we look at the profits of 312 Crore Rs. Hence close to 10% of profits. This is not bad for the revenue generated but it is obviously not in line with the asset and amount invested.

The financials prove that the company has set a range bound of percentage on its revenue, asset and profit rate. However at the end of day the company has managed to stay profitable since the last three years but the returns are not satisfying when we look from the asset base point of view.

PROS

  • Various brand names such as CarTrade, BikeWale etc.
  • The company has been able to earn constant profits over the last three years.

CONS

  • If we look at the financials it is quite clear that the company has heavy investment into assets and it generates only 10% of revenue from the assets. Also at the end of year the profits accumulated are not even 5% of the total asset base. This way it is quite obvious that the company has invested more money in the business than required.

CarTrade Tech Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

  1. Logging into Zerodha console through its website or KITE platform.
  2. Clicking the IPO link present in the Portfolio section
  3. Click the CarTrade Tech Limited IPO button and press the BID button
  4. Entering the details asked for like UPI ID, Quantity and price
  5. Submit the application form of IPO
  6. Visiting the application of UPI for approving the transaction

Now, applying for an IPO online is possible with most of the Discount and online brokers.

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