CarTrade Tech makes a weak debut in stock markets, List at 1% discount below issue price
The CarTrade Tech scrip was listed on the National Stock Exchange (NSE) for Rs 1,599.80 per share, down 1.12% from its offer price of Rs 1,618.00.
The shares of online auto classified platform CarTrade Tech made a weak debut on the stock exchanges today listing at over 1 per cent lower than their issue price.
On the National Stock Exchange (NSE), the scrip was listed at Rs 1,599.80 per share, down 1.12% from its offer price of Rs 1,618.00, while on the BSE, it opened at Rs 1,600.00, down 1.11 percent from the issue price.
During the first half-hour of trade, the stock fell further from its starting levels, reaching an intraday low of Rs 1,481.00 on the NSE and Rs 1,481.55 on the BSE.
According to data from the respective stock exchanges, over 61.93 shares of CarTrade Tech were moved on the NSE during the first 30 minutes of trading, while over 2.29 lakh shares were traded on the BSE.
The company had mopped up Rs 2,998.51 crore through its IPO. It was a complete offer for sale by selling shareholders including JP Morgan’s CMDB II, Highdell Investment, Macritchie Investments, and Springfield Venture International.
CarTrade Tech is a multi-channel auto platform that provides services under numerous brands, including CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.
The majority of brokerages advised investors to subscribe to the issue because it was the first to list in the sector, provided a wide variety of services, and provided BMW India with a dealer management system.
About CarTrade Tech
Shoppers utilise the CarWale, CarTrade, and BikeWale platforms to research and connect with dealers, original equipment manufacturers (OEMs), and other sellers and buyers of vehicles and two-wheelers. Shriram Automall (a subsidiary) facilitates sale of pre-owned vehicles. CarTrade Exchange is an online auction platform and a used vehicle ERP tool, also used by dealers to manage their processes like procurement, inventory management and CRM. Adroit Auto offers vehicle inspection and valuation services while AutoBiz provides CRM solutions to new car dealers.
“Considering the company’s future prospects, its scalable business model, profitable operations, and business growth opportunities in the auto sector value chain, as well as its position as the first mover advantage, we recommend that you’subscribe’ to the issue,” BP Equities said.
In the financial year ended March 2021, the company earned 57 percent of total revenue from commission and fees for auction, remarketing services of used vehicles. Online advertising solutions on its portals along with lead generation for OEMs, dealers, etc, and technology-based services combined contributed around 36 percent to revenues, and the rest of income was received via inspection and valuation services.
Among key competitors, it is the only profitable automotive digital platform since FY19.
BP Equities gave subscribe for long term rating for the issue. “CarTrade actively invests in improving their technology such as their artificial intelligence (AI) and machine learning capabilities in order to provide more relevant and timely information to their customers, and enhance user experience. Its comprehensive range of services i.e. automotive buying, selling, financing, marketing, etc and profitable and scalable business model provide for further growth visibility,” it reasoned.
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