Automobile classifieds company CarTrade files IPO papers with SEBI

Online auto classifieds platform CarTrade Tech has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial share sale.

The initial public offer (IPO) will be entirely an offer for sale (OFS) of 12,354,811 equity shares, draft red herring prospectus (DRHP) filed with SEBI showed on Monday.

Among the investors participating in the OFS are CMDB II (16.07 lakh equity shares), Highdell Investment Ltd (53.79 lakh shares), Macritchie Investments Pte Ltd (35.68 lakh shares), Springfield Venture International (11.24 lakh shares), and Bina Vinod Sanghi (1.83 lakh shares).

Currently, CMDB II holds 11.93 percent stake in CarTrade, Highdell Investment owns 34.44 percent stake, MacRitche Investment has 26.48 percent shareholding and Springfield Venture International holds 7.09 percent stake in the company.

Founded in 2009, Cartrade is backed by marquee investors — Warburg Pincus, Temasek, JP Morgan, and March Capital.

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The CarTrade platform allows customers to buy and sell used cars as well as new cars.

The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands — CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.

Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Limited have been appointed as investment bankers to advise the company on the IPO.

Last week the Mumbai-based automobile classifieds company converted itself from a private limited company to a public limited company via special resolution ahead of its initial public offering (IPO) this year, according to the company's filings with the Registrar of Companies (ROC) at the Ministry of Corporate Affairs (MCA).

Special Resolution allows provisions under Companies Act 2013 to alter its conditions such as the conversion of a private company into a public company.