Warburg Pincus and Temasek-backed CarTrade Tech Ltd. launched its three-day initial public offering on Monday as private equities and existing shareholders look to pare stake in the marketplace for used vehicles.
The tech firm's IPO received subdued investor interest on its first day with non-institutional and institutional investors staying away. About 80% of the retail portion was subscribed.
The company has set a price band of Rs 1,585-1,618 apiece, seeking a market valuation of Rs 7,416 crore at the upper end. The IPO, according to its red herring prospectus, is a Rs 2,988-crore offer-for-sale of 1.85 crore shares.
Before the IPO, the company has raised funds via private placement in form of preference shares at Rs 825.13 apiece in October, and in form of equity shares at Rs 1,376.80 apiece in April.
The issue is sale of secondary shares to public, and the funds raised will go to the selling shareholders and not the company.
Subscription Details: Day 1
The IPO was subscribed 0.41 times as of 5 p.m. on Aug. 9.
Institutional investors: 0.01 times
Non-institutional investors: 0.03 times
Retail investors: 0.80 times
Research Reports On CarTrade Tech IPO
Structural Long-Term Growth Drivers, Strong Brand Recognition: Nirmal Bang
Niche Business Model With Sound Scalability: Reliance Securities
Watch BloombergQuint's IPO Adda with CarTrade Tech:
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