CarTrade shares to make debut on August 2; likely to list at 8% premium

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CarTrade shares will make their debut on BSE and NSE on August 20, Friday. Shares of the company are likely to list at a premium of over 8% to the issue price of Rs 1,618 per share. The CarTrade platform allows customers to buy and sell used cars as well as new cars and there is no peer company having similar business operations.

CarTrade’ grey market premium (GMP) has jumped to Rs 135 per share, signalling a decent listing on bourses tomorrow.

Earlier, the initial public offer of CarTrade Tech was subscribed 20.29 times on the closing day of the subscription on August 11. The three-day public offer had received bids for 26,31,74,823 shares against 1,29,72,552 shares offered by the company.

The company is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands — CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz.

The category for qualified institutional buyers (QIBs) received 35.45 times subscription, while the portion for non-institutional investors was subscribed 41 times. The retail individual investors (RIIs) quota was subscribed 2.75 times.

The Rs 2,998.51-crore initial public offer (IPO) of up to 18,532,216 equity shares, was in a price range of Rs 1,585-1,618 per share.

Founded in 2009, CarTrade is backed by marquee investors — Warburg Pincus, Temasek, JPMorgan, and March Capital.

Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) were the managers of the offer.

Shares of Aptus Value Housing Finance and Nuvoco Vistas, which are slated to list on bourses on August 23, also trading a premium of Rs 13 and Rs 5 in the grey market. The price band for the cement manufacturer Nuvoco Vistas was fixed at Rs 560-570 per share. On the other hand, Aptus Value Housing Finance had fixed a price band of Rs 346-353 per share.