CarTrade IPO Listing Preview: Expected listing price, STRATEGY for long-term, short-term INVESTORS - Explained by Anil Singhvi

CarTrade Tech, an online auto classified platform, is all set to make a market debut on Friday (August 20, 2021). Zee Business Managing Editor and the market expert Anil Singhvi expects the listing of this new age business-model company would be mute near its issue price of Rs 1618 per share.

The Managing Editor suggests long-term Investors can HOLD, while short-term investors can keep a stop loss at Rs 1600 per share. He ahead of the IPO launch had advised, those investors with a high-risk-taking appetite can invest in CarTrade IPO, as the company has both positive and negative aspects.

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The initial public offer (IPO) of the company was oversubscribed by 20.29 times on the final day, it was launched on August 9, 2021, and closed on August 11, 2021. The three-day IPO received bids for 26,31,74,823 shares against 1,29,72,552 shares offered, as per the data available on exchanges.

The quota set aside for qualified institutional buyers (QIBs) received 35.45 times subscription, while the portion for non-institutional investors was subscribed 41 times and retail individual investors (RIIs) quota was subscribed 2.75 times.

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The Rs 2,998.51-crore initial public offer (IPO) of up to 18,532,216 equity shares, was in a price range of Rs 1,585-1,618 per share. Moreover, the company ahead of its share sale launch had raised Rs 900 crore from anchor investors.

CarTrade is a profit-making company, says Singhvi adding that it is one kind of big achievement for the company, as It has been making profit before the IPO launch, however, it failed to show last three years financial data while offering.

On valuations, the market expert had said that it is not cheap and it is to be considered that the stock is at a multiple of 200 PE.

CarTrade, founded in 2009, has been backed by marquee investors—Warburg Pincus, Temasek, JPMorgan, and March Capital. It allows customers to buy and sell used as well as new cars.