 "CarTrade Tech hits new low since listing; down 11% from issue price")
Shares of CarTrade Tech were trading lower for the third straight day, down 2.4 per cent at Rs 1,441.60 on the BSE in intra-day trade on Thursday, in an otherwise firm market. The stock was quoting at its lowest level since its listing on Friday, August 20, 2021. With the past three days' 8.7 per cent fall, the market price of CarTrade Tech has declined 11 per cent from its issue price of Rs 1,618 per share.
CarTrade Tech, a company that operates online platforms for buying and selling of vehicles, had made a weak debut on the bourses as the company’s shares ended at Rs 1,500, a 7 per cent discount to its issue price on the BSE on day of listing. However, the initial public offering (IPO) of the company had received a strong response from the investors, with the issue garnering 20.3 times subscription. The IPO was an offer-for-sale worth Rs 2,998 crore. The company had raised Rs 900 crore from anchor investors ahead of its issue.
On August 20, there was some institutional buying in the stock post listing as Goldman Sachs Trust, Jupiter India Fund and Plutus Wealth Management bought shares worth Rs 275 crore. However, the names of the sellers were not ascertained.
CarTrade Tech is a multi-channel auto platform provider company. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles. The company offers a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.
An increase in aggression by competition fueled by large amounts of global appetite to participate in this industry in India could impact the positioning of CarTrade Tech and its profitability, the brokerage firm Nirmal Bang Securities said in IPO note.
On the financial front, the company’s revenue in financial year 2020-21 (FY21) has seen de-growth owing to the Covid-19 impact but is expected to stabilize in the medium term. Amongst the industry players, CarTrade is the only profitable company which is a positive sign, according to analyst at Religare Broking.
CarTrade Tech, a company that operates online platforms for buying and selling of vehicles, had made a weak debut on the bourses as the company’s shares ended at Rs 1,500, a 7 per cent discount to its issue price on the BSE on day of listing. However, the initial public offering (IPO) of the company had received a strong response from the investors, with the issue garnering 20.3 times subscription. The IPO was an offer-for-sale worth Rs 2,998 crore. The company had raised Rs 900 crore from anchor investors ahead of its issue.
On August 20, there was some institutional buying in the stock post listing as Goldman Sachs Trust, Jupiter India Fund and Plutus Wealth Management bought shares worth Rs 275 crore. However, the names of the sellers were not ascertained.
CarTrade Tech is a multi-channel auto platform provider company. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles. The company offers a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.
An increase in aggression by competition fueled by large amounts of global appetite to participate in this industry in India could impact the positioning of CarTrade Tech and its profitability, the brokerage firm Nirmal Bang Securities said in IPO note.
On the financial front, the company’s revenue in financial year 2020-21 (FY21) has seen de-growth owing to the Covid-19 impact but is expected to stabilize in the medium term. Amongst the industry players, CarTrade is the only profitable company which is a positive sign, according to analyst at Religare Broking.
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