Autotech major CarDekho to buy back shares worth Rs 17.5 cr under Girnar group ESOP re-purchase plan, 2019

In a major development, autotech firm CarDekho has announced that it will buy back shares worth Rs 17.5 crore under Girnar group ESOP re-purchase plan, 2019. The company has circulated the offer letter to 71 eligible employees for participating in the repurchase plan. 

What's next?

CarDekho will be buying back stocks from both existing and former employees who have/had served four years in the company and are holding vested stocks. These employees will be able to encash 50% of the vested stocks under the plan.

CarDekho had recently released its FY 18- 19 annual results where it reported whopping revenue growth of 62% in its overall business and a positive Earnings before interest, tax, depreciation and amortization (EBITDA). "This year CarDekho has also been able to reduce its pre-marketing operation burn by 8%. The Q4 result of CarDekho remained most promising scaling the group’s revenue growth by 70%. Towards the end of the financial year, the company also raised $110 Mn fund to support its future growth plans. Axis Bank joined its list of investors during FY 2019 which also includes– Sequoia, Hillhouse, Google Capital and HDFC Bank," the company said in a statement.

Commenting on buy back announcement, Amit Jain, Co-Founder and CEO of CarDekho said, “As a team we had quite an exciting journey over the years. Now is time we wish to reward the contribution of both existing and ex-employees for their loyalty and the value that has been created over the years."