Retail investor interest in Warburg Pincus and Temasek-backed CarTrade Tech Ltd.'s initial public offering picked up on the second day of subscription.
The used vehicles marketplace's IPO was subscribed 0.41 times on the first day. While non-institutional and institutional investors stayed away, retail portion subscribed 80%.
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 float, 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. Private equities and existing shareholders look to pare stake in the tech firm.
Subscription Details: Day 2
The IPO was subscribed 0.99 times as of 5 p.m. on Aug. 10.
Institutional investors: 0.59 times
Non-institutional investors: 0.27 times
Retail investors: 1.53 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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