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Mumbai-based online auto classified platform CarTrade Tech has filed early papers with markets regulator to raise funds through an initial public offering, which will be entirely offer for sale.
The company, which operates several brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz, intends to raise about ₹2,000 crore, market sources said.
According to the Draft Red Herring Prospectus, the OFS would be up to 1.24 crore shares by CMDB II, Highdell Investment Ltd, Macritchie Investments Pte. Ltd, Springfield Venture International and individual promoter investors.
The company has appointed Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd as book running lead manager to the issue. Link Intime India is the registrar.
Marquee investors
CarTrade Tech is backed by marquee investors such as Warburg Pincus, Temasek, JP Morgan and March Capital through their affiliates Highdell Investment, MacRitchie Investments, CMDB II and Springfield Venture International, respectively. CMDB II holds an 11.93 per cent stake in the company, Highdell Investment a 34.44 per cent, MacRitche Investment Pte holds 26.48 per cent and that of Springfield Venture International is 7.09 per cent, it said.
In January 2018, CarTrade Tech acquired a 51 per cent stake in Shriram Automall India Private Ltd (SAMIL), a vehicle auctioning platform for used vehicles and equipment, for about ₹157 crore. Prior to that in 2015, it acquired rival classified platform CarTrade from leading European digital publisher Axel Springer for an undisclosed amount.
For the fiscal ended March 31, 2020, the company’s total income rose to ₹318.45 crore, from ₹266.81 crore recorded for the comparable year-ago period. It posted a total income of ₹189.61 crore for the nine-month-period ended December 31, 2020.
CarTrade has converted from a private limited company to a public limited company through a special resolution ahead earlier, according to its filings with the Registrar of Companies.
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