CarTrade Tech Shares End At 7.8% Discount To IPO Price On Market Debut
CarTrade Tech Ltd. listed at a discount on market debut even as institutional and non-institutional investors lifted the overall demand for shares of the marketplace for buying and selling new and used vehicles in its initial public offering.
The stock listed at Rs 1,575.05 apiece on the National Stock Exchange, a discount of 2.6% to its IPO price of Rs 1,618. The stock hit an intraday low of Rs 1,475, an 8.8% drop, thereafter. The stock ended its first day at Rs 1,491, down 7.8%
The company’s IPO had received 20.29 times more demand than the shares on offer. The portions reserved for institutional and non-institutional investors had subscribed 35.4 and 41 times, respectively, while retail interest remained subdued.
The issue was the sale of secondary shares to public, and the funds raised would go to the selling shareholders and not the company. Private equities and existing shareholders pared stake in the Warburg Pincus and Temasek-backed tech firm.