IPO of CarTrade Tech Limited listed on

 IPO of CarTrade Tech Limited listed on Bourses

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; listed on BSE at Rs. 1,600 a 1.11% discount to its issue price. The scrip got listed NSE at Rs. 1,599.80 per share, a 1.12% discount to its issue price of Rs. 1618. The shares of the company at day end closed at Rs. 1,500.10 per share on BSE and Rs. 1,491 per share on NSE.

As per BSE, the total quantity traded stood at 5,21,763 lacs shares with a delivery quantity percentage of 29.20%. Quantity traded and delivery percentage at NSE was approx. 11 crore shares and 51.56 % respectively. Total Turnover (BSE+NSE) on Day 1 stood at Rs. 1,81,544.84 lacs.

The Market Capitalization of the Company post today’s closing price stood at Rs. 6,875.57 crores as per BSE and Rs. 6,879 crores as per NSE.

The Offer was an offer for sale of up to 18,532,216 Equity Shares (“Offer for Sale”) by the Selling Shareholders, received bids of 26,31,74,823 shares against the offered 1,29,72,552 equity shares. The portion reserved for retail investors was subscribed 2.75 times. While the Qualified Institutional Buyer category was subscribed 35.45 times and the Non-Institutional Investor category was subscribed 41 times.

Key brokerage houses like Antique Stock Broking, Anand Rathi, Ashika Stock Broking Limited, Nirmal Bang and ICICI Direct, had given recommendations of "Subscribe" to the issue for long term perspective while highlighting the key strengths of the company like (a) differentiated and profitable business model (b) Strong brand suite serving an addressable market worth US$ 14.3 billion (c) Strong competitive positioning driven by superior customer experience, brand and powerful network effect and (d) looking to monetize value added services and untapped opportunities. CarTrade Tech is a multi-channel auto platform with a presence across varied vehicle types and value-added services. Its platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, CT enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles. Furthermore, it is the only profitable company among other related Platforms with 32 million average monthly unique visitors.

Company Information

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.

Grilled to Perfection: Barbeque Nation subscribed 5.98 times

 Grilled to Perfection: Barbeque Nation subscribed 5.98 times overall

Barbeque-Nation Hospitality Limited, one of India’s leading casual dining restaurant chains (in terms of outlet count as on September 30, 2020) as per Technopak Report; received bids of 2,99,01,510 shares against the offered 49,99,609 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 13.13 times. While the Qualified Institutional Buyer category was subscribed 5.11, the Non-Institutional Investor category was subscribed 3.10 times.  The employee category was subscribed 1.02 times.

 

While Prabhudas Lilladher and Nirmal Bang who recommended to subscribe to the issue basis the brand’s robust revenue growth and consistent progress in covers other well established brokerage houses like Kotak Securities, ICICI Direct, Angel Broking, Equirius, Ventura have highlighted positive aspects of the Company like widely recognized restaurant brand, strong emphasis on customer experience, pioneering the ‘Over The Table Barbeque' concept, integrated digital ecosystem for app and reservations, consistent cover growth in recent fiscals, strong presence in the Indian market and value-oriented business culture amongst others.

 

 

(Subscription Table Below)

 

With the reducing COVID cases in the country, progress made in vaccine development, clubbed with government official data indicating that India might have reached the peak of COVID 19 cases, opening up of economy is expected in the near future. It is estimated that by Q2 FY 2022, the Food Services Market is expected to regain almost 99% of the market on a base of 2020 and by Q3 and Q4 it is estimated to be 110% of the base of FY2020.

 

The IPO was a fresh issuance of equity shares of Rs 5 face value, aggregating up to Rs 180 cr and an offer for sale of up to 54,57,470 equity shares of face value of Rs 5 each by the selling shareholders. Equity shares aggregating up to Rs. 2 crore was reserved for eligible employees.

 

As of December 31, 2020, BNHL operated 147 Barbeque Nation restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six international Barbeque Nation restaurants across three countries namely UAE, Oman and Malaysia. The company diversified its offering by acquiring 61.35% stake (on a fully diluted basis) in Red Apple Kitchen Consultancy Private Limited which currently owns and operates Italian restaurants under the brand name “Toscano”, a casual dining Italian restaurant chain operating in Pune, Bengaluru and Chennai, “La Terrace” and “Collage”. It further extended its offerings by introducing UBQ by Barbeque Nation to provide a-la-carte Indian cuisine in the value segment and has also launched “Barbeque-in-a-Box” “Grills in a Box” “Meals in a Box” in June 2020 as delivery offerings.

 

Anupam Rasayan overall subscribed

Anupam Rasayan overall subscribed 1.29 times on Day 1

Surat based, custom synthesis and manufacturing focused specialty chemicals company Anupam Rasayan India Limited; received bids of 1,25,08,209 shares against the offered 96,66,848 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 2.59 times. While the Qualified Institutional Buyer remained unsubscribed, the Non-Institutional Investor category was subscribed 0.09 times.  The Employee category was subscribed 0.30 times.

The offer consists of a fresh issuance of equity shares aggregating up to 760 Cr of face value of Rs 10 each. The minimum bid lot is of 27 equity shares, thereafter in multiples.  The price band has been fixed at Rs. 553 – Rs. 555 per Equity Share. It will be listed on BSE & NSE. Prior to the IPO opening, the company raised Rs 225 cr via a pre ipo placement through 15 Anchor Investors across Asia, US & UK which included participation from marquee investors like Birla MF, Nomura Asset Management, Fidelity International, Sundaram MF, SBI Life and others.

 Key brokerage houses like Axis Securities, ICICI Direct, Motilas Oswal, Canara Bank Securities Ltd, Kotak Securities, Angel Broking, HEM Securities, Choice Capital, BP Securities and Ventura have given positive recommendations for the issue while highlighting the key strengths of the company like diversified customer base, core focus on process innovation and constant upgradation, consistent R&D, stringent quality specifications, strong and long-term client relationships, marquee client base amongst others. These report have further highlighted the Company’s consistent track record of financial performance and experienced management as one of the key advantages of the Company.

The reports have also highlighted that India’s specialty chemicals industry is expected to grow at a CAGR of approximately 10% to 11% over the next five years and that India accounts for approximately 1% to 2% of the global exportable specialty chemicals; which indicates a large scope of improvement and widespread opportunity in the speciality chemicals segment.

Axis Capital Limited, Ambit Private Limited, IIFL Securities Limited and JM Financial Limited are the book running lead managers to the Issue. 

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