On Monday, the share price of one of India’s largest online classifieds and auto auction platforms moved down by 3.4 percent on BSE to Rs. 827.75, after 71 lakh equity shares or 15.1 percent equity worth Rs. 588.3 crores were reported to exchange hands in the company via a block deal.
With a market capitalisation of Rs. 3,915.05 crore, at 11:24 a.m., the shares of Cartrade Tech Limited were trading in the red at Rs. 828.45, down by 3.32 percent, compared to its previous closing price of Rs. 856.9.
The shares of CarTrade Tech fell on June 24th as a block deal, valued at Rs. 588.3 crore, involving 71 lakh equity shares, or 15.1 percent equity, of the company changed hands at an average price of Rs. 828 apiece.
The two major foreign investors shareholders – Highdell Investment and MacRitchie Investments Pte – were likely to be the sellers, as reported by CNBC.
The floor price was set at Rs 820, which is a 4.3 percent discount from the previous closing price of Rs. 856.9 on Friday.
It was further reported that the block deal was expected at a value of Rs. 400 crore, with an option to raise an additional Rs. 100 crore and the transaction will have a 75-day lock-up period.
Additionally, the base size of the block deal was 10.4 percent of CarTrade Tech’s total equity, with an option to increase it up to 13 percent.
Highdell Investment was planning to sell a 7 percent stake in CarTrade Tech, with a potential upsize of 1.7 percent, while MacRitchie Investments was expected to sell a 3.4 percent stake, with a potential upsize of 0.9 percent.
As of the latest shareholding pattern of March 2024 available with the BSE, Macritchie Investments Pte Ltd hold a 16.31 percent stake in CarTrade, while Highdell Investment Ltd. holds a 17.36 percent stake in the company.
Further, Zerodha Broking holds nearly 5.54 lakh equity shares, representing a 1.18 percent stake, in the multi-channel auto platform.
In terms of financials, the company’s total revenue from operations grew by 52 percent YoY from Rs. 95.86 crore in Q4 FY22-23 to Rs. 145.3 crore in Q4 FY23-24, accompanied by an increase in the net profit of 43 percent YoY from Rs. 17.5 crore to Rs. 25 crore, during the same period.
On a year-on-year basis, the adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 124.91 crore in FY22-23 to Rs. 164.73 crore in FY23-24, representing a growth of 32 percent.
The stock delivered positive returns of around 71.7 percent in one year, and about 12.5 percent in the last six months. So far in 2024, the company has given nearly 14 percent of positive returns.
Cartrade Tech Limited is engaged in the business of maintaining a multichannel auto platform with coverage and presence across vehicle types and value-added services.
These platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and Olx. Through these platforms, CarTrade enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles.
Written by Shivani Singh
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