CarTrade IPO: Should you apply or not? Listing gain or long-term investment? Anil Singhvi lists positives & negatives of this offer

Online auto classified platform CarTrade Tech has opened its initial public offering on Monday, August 9. The price band for its nearly Rs 2,999-crore offering has been fixed at Rs 1,585-1,618 per share. The initial share sale is entirely an offer for sale (OFS) of 18,532,216 equity shares. The IPO will conclude on August 11.

Speaking on investing in the company Anil Singhvi, Managing Editor at Zee Business, said that high-risk taking investors can invest in CarTrade IPO. He added that it has both the positive and negative aspects.

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Talking on the positive aspect, the Market Guru said that it is a new-age business and new-age business is being liked by the market. "Foreign investors will always have an interest in this kind of companies," he said.

आज से खुलेगा कारट्रेड टेक का IPO

लिस्टिंग गेन या लंबी अवधि, कहां बनेगा पैसा?

कंपनी के लिए क्या पॉजिटिव, क्या निगेटिव?

जरूर देखिए अनिल सिंघवी का ये वीडियो...#EditorsTake #CarTrade #CarTradeIPO #IPO @AnilSinghvi_ pic.twitter.com/01gsyVcUkE

— Zee Business (@ZeeBusiness) August 9, 2021

The Market Guru said "Here you have to take a call on future if actually the company can grow that big or can bring such high valuations. If you will see the current valuations, revenue and profitability then you will think why so much of money but there are some investors who like these kinds of IPOs."

He said CarTrade is a profit-making company, and it is one kind of big achievement for the company. It has started making profit before the IPO but also data of only 3 years is required to be shown in the offering, he added.

Secondly, it is a cash-rich company with an investment of 600-650 crore and is cash equivalent and debt free, he said.

Talking about the negative aspect, the Market Guru said that it is an offer for sale and all the existing investors are selling their shares. He added that this type of IPOs are coming now-a-days as stock market is booming.

He said that secondly there is competition. There is no entry barrier and hence tough competition can come anytime. While on valuations the market expert said that it is not cheap. He said it is to be considered that the stock is at a multiple of 200 PE but seeing the future earning it can be thought of.

He concluded by saying that investors who can take risk and knows the risk related to business model can invest in the company.