CarTrade to raise Rs 2,000 cr through IPO
Online auto portal CarTrade is set to raise Rs 2,000 crore through an initial public offering (IPO) as technology companies line up to float their IPOs.
After online food delivery platform Zomato's Rs 8,250 crore IPO, CarTrade is now set to file the draft red herring prospectus (DRHP). According to the sources, the filing is likely to take place in the next 10-15 days. After the filing, CarTrade will be the first online auto classifieds firm to go public in India, sources told the media.
According to the sources, investment banks such as Axis Capital, Kotak Mahindra Capital, Citi, and Nomura are advising CarTrade on the IPO.
CarTrade is backed by American private equity giant Warburg Pincus, Singapore's state investor Temasek, JP Morgan and March Capital Partners.
The platform allows customers to buy and sell used as well as new cars and discover and review offerings by auto companies. The company runs CarTrade.com, Carwale.com and Bikewale.com.
It also has services such as automobile inspection, valuation, certification and other related services through Adroit, and Shriram Automall India, a platform for pre-owned commercial vehicles, passenger vehicles, construction and industrial equipment, tractors and agricultural equipment, and two and three-wheelers.
CarTrade had picked up a 51% stake in Shriram Automall in January 2018 for around Rs 157 crore. In 2015, the company acquired rival CarWale in a move to consolidate the online auto classifieds sector.