CarTrade Tech IPO subscribed 20.3 times on final day
The near Rs 3,000 crore IPO of the company has received strong response from high net-worth investors, institutional investors and retail investors.
By ETMarkets.com | Updated:
Agencies
MUMBAI: The initial public offering of CarTrade Tech continued to see strong response from investors on the final day of the bidding process on Wednesday.
At 5:00 pm, the issue had received bids for 26,31,74,823 shares as against the issue size of 1,29,72,552, implying a subscription of 20.3 times.
The near Rs 3,000 crore IPO of the company has received strong response from high net-worth investors, institutional investors and retail investors.
CarTrade has already raised Rs 899.55 crore through allotment of 5.6 million shares to anchor investors on the eve of the IPO.
The issue is an offer for sale (OFS) of up to 1,85,32,216 shares by existing selling shareholders being sold in the Rs 1,585-1,618 price band. At the upper end of the price band, the IPO is offered at 73.4 times price to earnings, 29.6 times EV-to-sales, and 4.4 times price-to-book value.
Analysts are largely positive on the issue, even as some of them worry over asking valuations. The valuations of the company seem to be stretched, said Arihant Capital, while suggesting investors to subscribe the issue for listing gains. "Long-term investors are recommended to buy the stock on dips post listing," it said.
An online second-hand automobile classified platform, CarTrade has no listed peer.
At 5:00 pm, the issue had received bids for 26,31,74,823 shares as against the issue size of 1,29,72,552, implying a subscription of 20.3 times.
The near Rs 3,000 crore IPO of the company has received strong response from high net-worth investors, institutional investors and retail investors.
CarTrade has already raised Rs 899.55 crore through allotment of 5.6 million shares to anchor investors on the eve of the IPO.
The issue is an offer for sale (OFS) of up to 1,85,32,216 shares by existing selling shareholders being sold in the Rs 1,585-1,618 price band. At the upper end of the price band, the IPO is offered at 73.4 times price to earnings, 29.6 times EV-to-sales, and 4.4 times price-to-book value.
Analysts are largely positive on the issue, even as some of them worry over asking valuations. The valuations of the company seem to be stretched, said Arihant Capital, while suggesting investors to subscribe the issue for listing gains. "Long-term investors are recommended to buy the stock on dips post listing," it said.
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An online second-hand automobile classified platform, CarTrade has no listed peer.
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