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”).
Disclaimers: CARTRADE
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/rhtm/citigroupglobalscreen1.htm,
Kotak Mahindra Capital Company Limited at www.investmentbank.kotak.com and
Nomura Financial Advisory and Securities (India) Private Limited at
www.nomuraholdings.com/company/group/asia /india/index.html. Potential
investors should note that investment in equity shares involves a high degree
of risk and for details relating to such risk, see the section titled
"Risk Factors" on page 22 of the RHP.
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
