CarTrade makes weak debut on stock market. Here’s all you need to know - India Today
CarTrade Tech has made a weak debut on the stock market after its IPO received a healthy response from investors last week. Here is all you need to know.
CarTrade Tech has made a weak stock market debut. (Photo: Reuters)
Shares of multi-channel auto platform CarTrade Tech made a damp debut on Dalal Street as it stock listed at a 1.11 per cent discount on the issue price of Rs 1,618 per share.
CarTrade’s stock got listed on the Bombay Stock Exchange (BSE) at Rs 1,600 and Rs 1,599.80 on the National Stock Exchange (NSE).
At 11:10 am, shares of CarTrade fell further to Rs 1,565 on the BSE, down 3.30 per cent from its issue price. On the NSE, the shares were trading at 1,562, down over 3.60 per cent.
CarTrade’s Rs 2999-crore IPO had received a healthy response from investors last week. The public offering was oversubscribed 20.29 times during August 9-11.
It may be noted that the public offering was a complete offer for sale (OFS), under which shareholders including JP Morgan's CMDB II, Highdell Investment, Macritchie Investments, and Springfield Venture International sold their stake.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 35.45 times while the quota for non-institutional saw 41 times subscription. The retail portion was subscribed 2.75 times.
The Mumbai-based company has a presence across several vehicle types and offers several value-added services. The platform operates under several brands including CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
The company enables customers, vehicles dealerships, original equipment manufacturers and other businesses to buy and sell vehicles.
Several brokerages had recommended investors to subscribe to the issue as it was the first company of its kind to go for a listing in the country. Analysts were also positive about the business outlook of the company and healthy financials.
Also Read | CarTrade Tech IPO share allotment finalised: How to check status and other details
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