Auto classifieds platform CarTrade has filed a draft red herring prospectus (DRHP) for an initial public offering (IPO) with the SEBI to raise about ₹2,000 crore.
Founded in 2010 by Vinay Sanghi, CarTrade operates an online auto classifieds platform that helps customers buy new or old cars. The issue consists of a pure offer-for-sale of 1,23,54,811 equity shares. Notably, CarTrade will not raise funds for itself and only its existing investors will be trading their shares.
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
By using this platform, 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. Cartrade 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.
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