CarTrade Shares Fall 4.3% Intraday On Likely Block Deal Worth Over INR 400 Cr

CarTrade Expands ESOP Pool With Allotment Of 28K Stock Options

SUMMARY

Highdell Investment and MacRitchie Investments Pte are reportedly offloading 7% and 3.4% stake each in the company with an upsize of 1.7% and 0.9%, respectively

The total value of the block deal might also increase to INR 500 Cr

In the last few months, several other major stakeholders, including March Capital and JP Morgan’s CMDB II have offloaded parts of their stakes in the company

Shares of online classifieds and auto auction platform CarTrade Technologies slipped 4.3% to INR 820 during the intraday trading on the BSE on Monday (June 24) amid reports that a block deal worth INR 400 Cr is expected in the company today.

As per a CNBC-TV18 report, Highdell Investment and MacRitchie Investments Pte are offloading 7% and 3.4% stake each in the company with an upsize of 1.7% and 0.9% respectively.

The total value might also increase to INR 500 Cr, the report said.

The floor price for the deal is reportedly set at INR 820 per equity share, offering a 4.3% discount compared to CarTrade’s last closing price on Friday.

As per BSE data, Highdell Investment held a 17.36% stake in CarTrade, while MacRitchie held a 16.31% stake in the company, at the end of the March quarter of 2024.

After falling 4.3%, shares of CarTrade revived slightly and were trading 3.4% lower at INR 827.65 by 12.54 PM IST.

It is to be noted that last week, the Income Tax (I-T) Department issued a demand letter to CarTrade for a shortfall in payment or collection of tax deducted at source (TDS) or tax collected at source (TCS).

In a filing with the BSE, CarTrade noted that it received the demand notice for INR 15.79 Lakh.

However, multiple block and bulk deals have been going on in the company since March this year.

Taiyo Greater India Fund Ltd offloaded 2.65 Lakh shares in the company in a bulk deal worth INR 21.7 Cr earlier this month.

In the last few months, several other major stakeholders, including March Capital and JP Morgan’s CMDB II have offloaded parts of their stakes in the company.

It is also pertinent to note that CarTrade once again turned profitable in the March quarter (Q4) of FY24. It reported a 43% jump in its profit after tax (PAT) to INR 25 Cr in the March quarter (Q4) FY24 from INR 17.5 Cr posted in the same quarter last year.

Shares of CarTrade have witnessed a significant upside over the last few months. The stock has rallied almost 20% since the beginning of May.