technology

CarTrade files IPO papers with Sebi


Car buying portal CarTrade has filed draft documents with markets regulator, Securities and Exchange Board of India, for an initial public offering.

The pure offer for sale (OFS) comprises 12,354,811 equity shares of the company, the Draft Red Herring Prospectus put out by its lead book running manager Axis Capital showed.

It did not provide details of a price band for the sale of equity shares of Rs 10 face value.

The IPO seeks to raise around Rs 2,000 crore, ET reported earlier.

CarTrade has appointed investment banks such as Kotak Mahindra Capital Co, Citigroup Capital Markets and Nomura, apart from Axis Capital to help with the IPO process.

Its selling shareholders include investors Warburg Pincus LLC (Highdell Investment Ltd), Temasek (MacRitchie Investments Pte Ltd), JP Morgan (CMDB II) and March Capital (Springfield Venture International).

CMDB II will sell 1,608,324 equity shares, Highdell Investment (3,568,217 shares), MacRitchie Investments (3,568,217 shares), Springfield Venture International (1,124,700 shares), while Bina Vinod Sanghi will sell 183,333 shares.

The offer constitutes 26.96% of the company’s post-offer paid-up equity share capital.

Its valuation has doubled since the company raised Rs 321.6 crore in a Series H round from existing investors Temasek, Warburg Pincus and March Capital Partners in June. At the time, it was valued at Rs 3,930.3 crore, or $525 million.

ET was the first to report the company’s IPO plans on March 11, 2020.

CarTrade is a multichannel auto platform with coverage and presence across vehicle types and value-added services through brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.

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“In the three months ended March 31, 2021, our platforms had an average of 31.99 million unique visitors per month and 814,316 vehicles were listed for auction in FY 2021,” the draft reads.

Founded in 2009 by Vinay Sanghi, former CEO of Mahindra First Choice and Rajan Mehra, former country head of eBay India, CarTrade has received funding from various investors like Canaan Partners, Epiphany Overseas Ventures, Tiger Global, Temasek, March Capital, Austin Ligon, and Warburg Pincus.

The platform helps in auctioning cars, tractors, trucks and farm equipment for dealers from banks, non-banks and insurance companies and lead generation for new cars. The company acquired CarWale in 2015 and took a majority stake in Shriram Automall in 2018.

With the IPO, CarTrade joins a long list of tech-focused companies that are eyeing public market listings such as Zomato, Nykaa, PolicyBazaar, and Flipkart.



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