Profitable Multi-Channel Auto Platform
CarTrade Tech Limited’s
IPO to open on August 09, 2021
· Price Band of Rs. 1,585 – Rs. 1,618 per equity share of face value of Rs. 10 each (“Equity Shares”)
· Bid/Offer Opening Date – Monday, August 09, 2021 and Bid/Offer Closing Date – Wednesday, August 11, 2021
· Minimum Bid Lot is 9 Equity Shares and in multiples of 9 Equity Shares thereafter
· The Floor Price is 158.5 times the face value of the Equity Share and the Cap Price is 161.8 times the Face Value of the Equity Share
· Led by Mr Vinay Vinod Sanghi who is the Chairman, Managing Director and CEO of the company
Risks to Investors: • The four BRLMs associated with the Offer have handled 36 public issues in the past three years, out of which 9 issues closed below the issue price on listing date. • The Price/Earnings ratio based on diluted EPS for Fiscal 2021 for the Company at the upper end of the Price band is 84.31.• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 3.52%.• Average Cost of acquisition of Equity Shares for the Selling Shareholders, namely CMDB, Highdell, MacRitchie, Springfield, Bina Vinod Sanghi (Jointly held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III and Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi) is ₹ 270.42, ₹ 454.82, ₹ 604.82, ₹567.59, ₹10.00, ₹14.29, ₹ 10.00, ₹ 301.71 and ₹ 61.54, respectively and the Offer Price at the upper end of the Price Band is ₹ 1,618 per Equity Share.
CarTrade Tech, a multi-channel auto platform via its several integrated brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and Auto Biz, is proposing to open its initial public offering of Equity Shares (the “Offer”) on Monday, August 09, 2021 and close on Wednesday, August 11, 2021. The price band for the Offer has been determined at Rs. 1,585 – Rs. 1,618 per Equity Share.
The Offer will be an offer for sale of up to 18,532,216 Equity Shares (“Offer for Sale”) by the Selling Shareholders, namely, CMDB II, Highdell Investment Ltd, Macritchie Investments Pte. Ltd, Springfield Venture International, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, Vinay Vinod Sanghi (Jointly Held with Seena Vinay Sanghi). The Company will not receive any proceeds from the Offer.
The Company, the Major Shareholders and the Investor Selling Shareholders have, in consultation with the book running lead managers to the Offer (the “BRLMs”), considered participation by Anchor Investors, whose participation shall be one Working Day prior to the bid/offer opening Date, i.e. Friday, August 06, 2021.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations, through the Book Building Process wherein not More than 50% of the Net Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders.
CarTrade Tech is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. The company’s platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, CarTrade Tech enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.
The company’s consumer platforms i.e. CarWale, CarTrade and BikeWale, collectively get 3.2 crore average unique visitors every month (during the 3 months period ending March 31 2021) and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY 2021.
CarTrade Tech was the only profitable digital auto platform for the financial year 2020 (Source: RedSeer Report). CarTrade Tech is profitable since FY 19.
The company generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology based services to OEMs/Dealers/Banks and other financial institutions and inspection and valuation services.
The company is led by Mr Vinay Vinod Sanghi who is the Chairman, Managing Director and CEO. Key management personnel include Aneesha Menon - Executive Director and Chief Financial Officer, Banwari Lal Sharma - Chief Executive Officer – Consumer Business, Sameer Malhotra - Chief Executive Officer of Shriram Automall, Akshay Shankar - Chief Product Officer – Group and Vikram Alva - Chief Strategy Officer – Group. It is backed by marquee institutional shareholders that include affiliates of Warburg Pincus, Temasek, JP Morgan and March Capital.
Axis Capital Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities (India) Private Limited are the BRLMs to the Offer.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated July 28, 2021 (“RHP”) filed with the Registrar of Companies, Maharashtra at Mumbai (“RoC”).
TECH LIMITED is proposing, subject to receipt of requisite approvals, market
conditions and other considerations, to make an initial public issue of its
equity shares bearing face value of Rs10 each (“Equity Shares”) and has filed
the RHP with the RoC and thereafter with SEBI and the Stock Exchanges. The RHP
shall be available on the website of the SEBI at www.sebi.gov.in as well as on
the websites of the BRLMs, i.e. Axis Capital Limited at www.axiscapital.co.in,
Citigroup Global Markets India Private Limited at www.online.citibank.co.in/
The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“U.S. Securities Act”) or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold (i) outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur; and (ii) in the United States, to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act), pursuant to Section 4(a) of the U.S. Securities Act.
DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 284 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 286 of the RHP for the full text of the disclaimer clause of the BSE.
DISCLAIMER CLAUSE OF NSE (Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 287 of the RHP for the full text of the disclaimer clause of NSE