Autotech startup CarTrade files prospectus for INR 2K Cr IPO


●What is the news ?

•CarTrade has filed its Draft Red Herring Prospectus (DRHP) with Indian markets regulator Securities and Exchange Board of India in preparation for its upcoming initial public offering (IPO).

•Warburg Pincus, Temasek, JP Morgan and March Capital will primarily be selling shares in the public offering.

•CarTrade is making a pure offer for sale (OFS) for 1,23,54,811 equity shares of the company, as per Axis Capital.

•Axis Capital is the lead book running manager, while Kotak Mahindra Capital Co, Citigroup Capital Markets and Nomura have also been signed up as investment banks for the IPO.


●Things to know more

•CarTrade converted itself from a private limited company to a public company last week, ahead of its planned IPO. The company also approved the appointment of its founder and CEO Vinay Sanghi as managing director (MD) of CarTrade for the next five years.

•It was founded in 2009 by Vinay Sanghi. The company’s online car auction platform has a presence in over 80 Indian cities.

•In its DRHP for the IPO, CarTrade notes that on a consolidated level, the company reported revenue of over INR 318 Cr, which resulted in a net profit of INR 31.2 Cr. Further till December 2020, the company has reported income of INR 189.6 Cr for FY21 (9 months) with a net profit of INR 85 Cr. The company has been profitable since FY2019, ending in March 2019.

7 views0 comments