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 :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the CarTrade Tech Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- 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.
