Among key competitors, it is the only profitable automotive digital platform since FY19.
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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); glbbid=v.id; } }); } }); } else { AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function commonPopRHS(e) { /*var t = ($ (window).height() – $ (“#” + e).height()) / 2 + $ (window).scrollTop(); var n = ($ (window).width() – $ (“#” + e).width()) / 2 + $ (window).scrollLeft(); $ (“#” + e).css({ position: “absolute”, top: t, left: n }); $ (“#lightbox_cb,#” + e).fadeIn(300); $ (“#lightbox_cb”).remove(); $ (“body”).append(”); $ (“#lightbox_cb”).css({ filter: “alpha(opacity=80)” }).fadeIn()*/ $ (“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′); $ (“#LoginModal”).modal(); } function overlay(n) { document.getElementById(‘back’).style.width = document.body.clientWidth + “px”; document.getElementById(‘back’).style.height = document.body.clientHeight +”px”; document.getElementById(‘back’).style.display = ‘block’; jQuery.fn.center = function () { this.css(“position”,”absolute”); 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Multi-channel auto platform CarTrade Tech will open its initial public offering for subscription next week.
Here are 10 key things to know before subscribing to the issue:
1) IPO Dates
CarTrade Tech will open its public issue for bidding during August 9-11.
2) Price Band
The price band for the offer has been fixed at Rs 1,585–1,618 per equity share.
3) Public issue
The IPO is a complete offer for sale of 1,85,32,216 equity shares by the selling shareholders — CMDB II, Highdell Investment, Macritchie Investments, Springfield Venture International, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi).
4) Fund Raising and Objectives of Issue
The company plans to raise Rs 2,998.51 crore through its offer, at the upper end of the price band of Rs 1,618 per share. The company will not receive any proceeds from the offer as it is a complete offer for sale.
5) Lot Size and Investors’ Reserved Portion
Investors can bid for a minimum of 9 equity shares and in multiples of 9 equity shares thereafter. The minimum investment in the IPO by a retail investor would be Rs 14,562 per lot and the maximum would be Rs 1,89,306 for 13 lots as retail investors are allowed to invest only up to Rs 2 lakh in the IPOs.
Half of the total offer has been reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and the remaining 35 percent for retail investors.
To Know All IPO Related News, Click Here
6) Company Profile
CarTrade, a multi-channel auto platform with coverage and presence across vehicle types and value-added services, operates under several brands CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
Through these platforms, the company enables new and used automobile customers, vehicle dealerships, vehicle original equipment manufacturers (OEMs) and other businesses to buy and sell their vehicles in a simple and efficient manner. Its vision is to create an automotive digital ecosystem that connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders.
CarWale and BikeWale are ranked number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021, while Shriram Automall is one of the leading used vehicle auction platforms based on the number of vehicles listed for auction for the financial year 2020.
Among key competitors, it is the only profitable automotive digital platform since FY19.
In the three months ended June 2021, its consumer platforms, CarWale, CarTrade and BikeWale collectively had an average of 27.11 million unique visitors per month, with 88.14 percent being organic visitors (i.e., as a result of unpaid searches). The company endeavours to deliver a superior consumer experience, which is reflected by an average time per visit of 3 minutes and 7 seconds during the three months ended June 30, 2021 on the CarWale website.
The company’s consumer platforms i.e. CarWale, CarTrade and BikeWale, collectively get 3.2 crore average unique visitors every month (during the 3 months period ending March 31, 2021) and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY 2021.
The company offers a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing of new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles and farm and construction equipment.
It believes that the diversity and number of users across all its platforms provide value to buyers and sellers and creates a network effect in businesses. A snapshot of the ecosystem and network effects created by key offerings is illustrated below:
7) Strengths and Strategies
a) It is a leading marketplace for automotive sales with a synergistic ecosystem.
b) Brands and customer experience are driving powerful network effects which in turn increases the stickiness of automotive dealers, OEMs, financial institutions, fleet owners and other stakeholders to platforms and creates high entry barriers for new market entrants.
c) End-to-end technology platforms largely developed by the in-house team allows the company to offer a seamless solution to customers.
d) Focus on data science and proprietary algorithms to provide superior solutions.
e) Profitable and asset-light scalable business model.
f) Capable management team with significant industry experience, led by Chairman, Managing Director and CEO, Vinay Vinod Sanghi.
Strategies
a) Well-positioned to benefit from the growth of the automotive sector and digitalization.
b) Grow business through digital ecosystem, online-offline presence and vehicle-agnostic approach.
c) Create an opportunity to monetize value-added services and untapped opportunities through strong customer base and technology platform.
d) Continue to invest in improving technology such as Artificial Intelligence (AI) and machine learning capabilities in order to provide more relevant and timely information to customers, and enhance user experience.
e) Well-positioned to pursue value-enhancing investments and acquisitions.
8) Financials and Peer Comparison
CarTrade Tech’s revenue grew at a CAGR of 1.3 percent during FY19-FY21 and EBITDA (earnings before interest, tax, depreciation and amortisation) grew at a CAGR of 15.5 percent in the same period. Profit increased at a CAGR of 133.8 percent in FY19-FY21.
The company generates revenues from several business streams primarily comprising commission and fees from auction and remarketing services of used vehicles, online advertising solutions on platforms, lead generation, technology-based services, and inspection and valuation services.
9) Promoters and Management
The company is a professionally managed company and does not have an identifiable promoter. It is owned by marquee institutional shareholders include Highdell Investment (affiliate of Warburg Pincus LLC) with 34.44 percent stake, MacRitchie Investments Pte Ltd (an affiliate of Temasek) with 26.48 percent stake, CMDB II (private equity fund run by JP Morgan) and March Capital (which owns Springfield Venture International & MCP3 SPV LLC) with 9.79 percent stake. Among others, Malabar India Fund and IIFL Special Opportunities Fund held over a percent stake each.
Vinay Vinod Sanghi, the Chairman, Managing Director and CEO of the company, held 3.56 percent shareholding in the company. He was appointed as the Chief Executive Officer of the company on September 1, 2009. He has previously been associated with Mahindra First Choice Wheels, and Project Automobiles (Bombay). He has over 30 years of experience in the automobile industry.
Aneesha Menon is an Executive Director and Chief Financial Officer of the company. She was previously employed with S R Batliboi & Co LLP and has 13 years of experience in the field of finance. She joined Automotive Exchange (an erstwhile subsidiary that was subsequently amalgamated with the Company) – as AVP – Finance on December 8, 2015. She was then appointed as the Chief Financial Officer of the company on July 21, 2020.
Victor Anthony Perry III is a Non-Executive Director of the company. He was previously the president and chief executive officer of TrueCar, Inc.
Kishori Jayendra Udeshi, Vivek Gul Asrani, and Lakshminarayanan Subramanian are Independent Directors.
Banwari Lal Sharma is the Chief Executive Officer – Consumer Business. He joined Automotive Exchange in 2004 and has 17 years of experience in software engineering. He was promoted to the position of CEO – Consumer Business of the company on October 1, 2020.
Sameer Malhotra is the Chief Executive Officer of SAMIL since November 16, 2010. He was previously employed with Ritchie Bros. Auctioneers (ME), Ansal Housing and Construction, Empire Finance Company, Premium Finance and Leasing, and SREI Infrastructure Finance, and has over 31 years of experience in sales industry.
Akshay Shankar is the Chief Product Officer – Group. He has 14 years of experience in product management. He joined the company on August 1, 2009 as a product manager and has held technology and product leadership roles since then. Akshay was promoted to the position of Chief Product Officer – Group (CPO) on October 1, 2020.
Vikram Alva is the Chief Strategy Officer – Group (CSO). He was previous employed with Tata International, Webneuron Services (JobsAhead.com) and Solutions Integrated Marketing Services (Solutions DIGITAS). He has 24 years of experience in building businesses, product management and marketing. He joined the company on January 9, 2012 as senior vice president – marketing and was promoted to the position of CSO on October 1, 2020.
10) Allotment, refunds and listing dates
After closing the issue on August 11, CarTrade Tech will finalise IPO share allotment on August 17, and the funds will be refunded on August 18.
Equity shares will be credited to the demat accounts of eligible investors on August 20 and the trading in equity shares will commence with effect from August 23.
Equity shares will be listed on the BSE and National Stock Exchange.
Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) are the book running lead managers to the offer.
