CarTrade joins about one fifth of India's debutants so far in 2021 whose shares listed at a discount.
Online auto classified platform CarTrade Tech's shares declined following a tepid debut on Dalal Street on Friday. Shares in Mumbai-based CarTrade Tech quoted at Rs 1,532.50 apiece on BSE in afternoon deals, having listed on the bourse at Rs 1,600 — a discount of 1.11 percent compared with the issue price of Rs 1,618.
Recommended ArticlesView All
New Locker Rules — Here's why the RBI has gone overboard
Jan 28, 2023 IST5 Min(s) Read
Meet Padma Shri Awardee Guru K Kalyanasundaram Pillai, the man who is keeping an ancient tradition alive
Jan 27, 2023 IST3 Min(s) Read
This is how the new draft IT rules propose to make online gaming safe
Jan 27, 2023 IST4 Min(s) Read
78 percent Indian workers uneasy about job security amid layoffs: Survey
Jan 27, 2023 IST5 Min(s) Read
The CarTrade stock moved within a Rs 134 range on its first day of trading, between Rs 1,476 and Rs 1,610 apiece on the bourse.
On NSE, CarTrade Tech shares slid to as low as Rs 1,475 apiece during the session, marking a discount of 8.84 percent compared with the issue price.
Mumbai-based CarTrade Tech's Rs 3,000 crore initial public offer (IPO) was subscribed more than 20 times this month, receiving 26.32 crore bids against the total issue size of 1.30 crore shares.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 35.45 times, and that for non-institutional investors 41 times. The quota reserved for retail individual investors (RIIs) saw a subscription of 2.75 times.
CarTrade joins about one-fifth of India's debutants so far in 2021 whose shares listed on bourses at a discount.
Should you add CarTrade shares?
"We suggest investors who have received the allotment to hold the shares for a short time as we expect it to show some recovery in the near future," said Yash Gupta, Equity Research Associate at Angel Broking. Gupta does not recommend investors to take fresh long positions in the stock.
"Currently, it is trading at a PE ratio of 68 times. The company has reported improvement in financial performance in the last three years," he added.
Founded in 2009, CarTrade is backed by marquee investors Warburg Pincus, Temasek, JPMorgan, and March Capital.
The CarTrade platform allows customers to buy and sell new as well as used cars. It has coverage and presence across vehicle types and value-added services through its brands CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.
Earlier this month, Devyani International made a strong debut on Dalal Street as its shares listed on exchanges at a premium of 57 percent over the issue price. Its IPO was subscribed 117 times.
Also read: Devyani makes it to top 10 listings so far in 2021. Check out the best and worst debutants here
(Edited by : Ajay Vaishnav)