“They are ready to file DRHP. Final touches are being put on the document. It should happen in the next 10-15 days. This will be the first online auto classifieds company to go public in India,” the first person cited above said, requesting anonymity as he is not authorized to speak with the media.
CarTrade will raise around ₹2,000 crore through the IPO, the person said, adding, “It will be a mix of primary and secondary share sale. Investment banks Citi, Nomura, Axis Capital and Kotak Mahindra Capital are advising CarTrade on the IPO.”
A message sent to CarTrade founder Vinay Sanghi did not elicit a response.
CarTrade is backed by investors such as American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JP Morgan and March Capital Partners.
The CarTrade platform allows customers to buy and sell used cars as well as new cars and discover and review various offerings by auto companies.
The company operates multiple properties including CarTrade.com and Carwale.com for four wheelers and Bikewale.com for two wheelers.
The platform also includes Adroit, which provides services such as automobile inspection, valuation, certification and other related services; and Shriram Automall India Ltd, a platform for pre-owned commercial vehicles, passenger vehicles, construction and industrial equipment, tractors and agricultural equipment and three-wheelers and two-wheelers.
CarTrade acquired a 51% stake in Shriram Automall in January 2018 for around ₹157 crore.
Earlier in 2015, CarTrade had acquired rival CarWale in a move to consolidate the online auto classifieds industry.
“The pandemic has given a strong push to personal mobility, as has been seen by the auto sales numbers in the past couple of quarters. It has also made digital a very prominent channel for buying and selling cars. These trends will provide tailwinds for the company to grow stronger in the coming years,” the second person cited above sa, requesting anonymity.
This article was first published on livemint.com.