The initial public offering of multichannel mobility platform CarTrade Tech has been subscribed 41 percent on August 9, the first day of bidding. The offer has received bids for 53 lakh equity shares against the IPO size of 1.29 crore equity shares, as per the subscription data available on exchanges.

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The portion set aside for retail investors has been subscribed 80 percent, and non-institutional investors bought 91,800 equity shares against their portion of 27.79 lakh equity shares. Qualified institutional buyers have bid for just 1 percent of the shares reserved for them.

The Rs 2,998.51-crore IPO of CarTrade Tech is a complete offer for sale (OFS) of 18,532,216 equity shares worth Rs 2,998.51 crore by promoters and existing shareholders.

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Investors participating in the OFS include Springfield Venture International, Macritchie Investments, Shree Krishna Trust, Victor Anthony Perry III, CMDB II, Highdell Investment, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi), and Daniel Edward Neary.

The price band for the offer has been fixed at Rs 1,585–1,618 per equity share. The offer closes on August 11.

Also Read: CarTrade Tech IPO opens today: Should you subscribe? Here's what brokerages say

In terms of valuations, the post-issue FY2021 PE works out 73.4x to (at the upper end of the issue price band). There are no listed peers for comparison. However, the company is doing better compared to its unlisted peers in terms of financials, said Angel Broking.

"We believe the company has a strong brand, better technology platforms, and a profitable & scalable business model. Hence, we recommend a ‘subscribe’ rating on the issue," the brokerage added.

First Published:Aug 9, 2021 1:02 PM IST