CarTrade IPO Off To Slow Start Overall With 41% Subscription; Retail Bids Growing Fastest

The CarTrade Tech initial public offering has started off relatively slowly. The issue has been subscribed 0.41 (41%) times overall, on day one of subscriptions being open for bids, August 9. CarTrade Tech IPO was subscribed 0.80 times (80%) in the retail category, but a mere 1% (0.01 times) in the qualified institutional buyer (QIB) quota, and 3% (0.03 times) the issue size in the non-institutional category. In contrast to the 41% subscription, the Zomato IPO saw 105% subscription on the day one of its IPO.

The CarTrade Tech IPO is a public issue of 12,972,552 equity shares. The issue offers 6,486,276 shares to retail individual investors, 3,706,443 shares to qualified institutional buyers, 2,779,833 share to non-institutional investors. Half of the allocation is for the retail portion, with 28.57% for qualified institutional buyers and the remaining for non-institutional investors. That means the company has received bids for 80% of the retail portion by 15:00 on the opening day, and is on track to be oversubscribed among retail buyers if the pace continues for the next two days.

Typically, the issue sees the institutional bids trickling over days 2 and 3. The IPO subscription will end on August 10, 2021 at 17:00 and thereafter the draw will take place for the allotment of shares at the bid price. The stock is expected to be listed for trading by Monday, August 23, 2021.

CarTrade raised INR 899.5 Cr from anchor investors last week during the early window for such investors, according to a statement it filed with the exchanges. “… under Anchor Investors (AIs) portion in the Public Issue of Cartrade Tech Limited, 55,59,664 Equity Shares have been subscribed today at Rs. 1618 per equity share,” said a statement.

The IPO is an offer for sale of up to 18,532,216 equity shares held by CMDB II, Highdell Investment Ltd, Macritchie Investments Pte. Ltd, Springfield Venture International, Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, Bina Vinod Sanghi, Seena Vinod Sanghi and the company’s founder Vinay Vinod Sanghi.

The issue started today and will conclude on August 11 and the price band has been fixed at INR 1,585-INR 1,618 a share. At the upper end of the price band, the IPO is expected to mobilise INR 2,998 Cr.