Today 9th August – CarTrade Tech Limited – IPO Opens – It’s risky offer but risk taker may apply for listing gain only

About Company :-

Incorporated in 2000, CarTrade Tech Ltd 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.

Issue Details
• Issue Opens on 9th August & Closes on 11th August

• Object of the issue : To carry out an offer for sale. and achieve the benefits of listing.

• Issue Size : 1,85,32,216 Eq. Shares (Rs. 2998.51 Cr.)

• Offer Price : Rs. 1585 to 1618 (F. V. Rs. 10)

• Listing on BSE and NSE Platform

• BRLM : Axis Capital, Citi Group, Kotak Mah., Nomura • Registrar : Link Intime India Pvt. Ltd.

• Issue constitutes 40.43% of the post issue paid up capital Average of last 3 Yrs. EPS Rs. 11.93 & RONW : 3.52%

• Pre IPO Equity Capital Rs. 45.83 Cr. • Post IPO Equity Capital Rs. : 45.83 Cr.

• Post Issue : P/BV Ratio : 4.12 (NAV : 392.83)

• Pre IPO P/E Ratio : 84.31 • Post IPO asking P/E on fully diluted equity : 199.36

 

Recommendation : On valuation front parameter like P/BV of 4.21 & PE around 200 are not justified.
Its exorbitant OFS pricing and hence its very risky IPO for retail investors. However its first
IPO from this segment, risk taker may apply for listing gain.