CarTrade Tech likely to get Sebi nod for Rs 2,000 cr IPO this week; launch slated for August

MUMBAI: Online automobile classified portal CarTrade Tech is likely to receive the Securities and Exchange Board of India’s nod for its initial public offering this week, sources aware of the development told ETMarkets.com.

The internet startup may announce the launch of the public offer on August 2 with the issue likely to open for public subscription in the same week, sources said.

The internet-based automobile classifieds portal filed its draft red herring prospectus with the Sebi in May for an IPO worth Rs 2,000 crore.

In a recent private round of fundraising, CarTrade came close to being a unicorn startup after raising $25 million from Malabar India Fund and IIFL at a valuation of close to $1 billion.

CarTrade IPO is purely an offer-for-sale by existing investors of the company. The company will be offering 12.35 million shares by CMDB II, Highdell Investment, Macritchie Investment, Springfield Venture International and Bina Vinod Sanghi in the IPO.

The startup has managed to nearly double its valuations in the space of 12 months after raising funds in a Series H capital raise from investors like Temasek Holdings in June 2020.

Given the success seen by the IPO of another online startup Zomato recently, investment bankers suggested that there is likely to be considerable enthusiasm for the IPO given the growing demand for used cars in India.