CarTrade Tech announced on Friday that the company has raised Rs 900 crore from anchor investors prior to its IPO opening on Monday. According to the BSE, the company has allocated 55,59,664 equity shares to these anchor investors at a price of Rs 1,618 per share apiece. These transactions took the valuation to Rs 899.55 crore. The anchor investors are high profile market players like Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF. The initial sale of the share will be an offer for sale (OFS) of 18,532,216 equity shares.
The investors taking part in the OFS include CMDB II with 22.64 lakh equity shares, Highdell Investment Ltd with 84.09 lakh shares, Macritchie Investments Pte Ltd with 50.76 lakh shares and Springfield Venture International with 17.65 lakh shares. After the OFS, CMDB II owns an 11.93% stake in CarTrade while Highdell Investment owns 34.44% stake, MacRitche Investment owns 26.48% shareholding and Springfield Venture International owns a 7.09% stake in the company. The public issue has a price band of Rs 1,585-1,618 per and will open for subscription on August 9 and close on August 11. The IPO is expected to mobilise Rs 2,998.51 crore at the upper end of its price band. Almost half of the issue size has already been reserved for qualified institutional buyers (QIBs), 35 % for retail investors and the rest 15% for non-institutional investors.
CarTrade was found in 2009 and is has several marquee investors like Warburg Pincus, Temasek, JPMorgan and March Capital. The online platform allows customers to trade used cars or deal with new cars. The firm has several brands to cover the needs of a larger customer base. Brands like CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz all come under CarTrade. The firm generates its revenue through commissions, auctions and services like re-marketing services, online advertising solutions, lead generation, technology-based services to OEMs, dealers, banks and other financial institutions, and inspection and valuation services.