CarTrade files for IPO to raise Rs 2000 crore, will become first auto classifieds to go public

New Delhi: Ater weeks of speculation, CarTrade has finally filed a draft red herring prospectus (DRHP) for an initial public offering (IPO) with the Securities and Exchange Board of India (SEB) to bag around Rs 2,0000 crore. 

The online auto classifieds platform’s offer comprises 26.96% of post-offer paid-up equity share capital with a face value of Rs 10 per share. The company is being advised by investment banks such as Citi, Nomura, Axis Capital and Kotak Mahindra Capital on the IPO.

CarTrade’s issue lists 12,354,811 equity shares on a pure offer-for-sale (OFS). It is important to note that the company is not raising any fund for itself, and only its existing investors are trading their shares. 

Founded in 2010 by Vinay Sanghi, CarTrade operates an online auto classifieds platform that helps customers buy new or old cars. Customers can also sell their used cars on the platform. It is said to have sold over 1 million cars on its platform in 2020. 

The company is backed by investors American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JP Morgan and March Capital Partners. Besides CarTrade, the company also runs Carwale.com and Bikewale.com for trading two-wheelers. It also runs Adroit, which provides additional services related to automobiles, including automobile inspection, valuation, certification, among others. 

In January 2018, CarTrade also acquired Shriram Automall India Ltd, which deals in pre-owned commercial vehicles, including construction and industrial equipment and tractors and agricultural equipment