CarTrade IPO: Should you apply or not? Listing gain or long-term investment? Anil Singhvi lists positives & negatives of this offer
CarTrade Tech has opened its initial public offering (IPO) on Monday, August 9. Speaking on investing in the company Anil Singhvi, Managing Editor at Zee Business, said that high-risk taking investors can invest.
Online auto classified platform CarTrade Tech has opened its initial public offering on Monday, August 9. The price band for its nearly Rs 2,999-crore offering has been fixed at Rs 1,585-1,618 per share. The initial share sale is entirely an offer for sale (OFS) of 18,532,216 equity shares. The IPO will conclude on August 11.
Speaking on investing in the company Anil Singhvi, Managing Editor at Zee Business, said that high-risk taking investors can invest in CarTrade IPO. He added that it has both the positive and negative aspects.
See Zee Business Live TV Streaming Below:
Talking on the positive aspect, the Market Guru said that it is a new-age business and new-age business is being liked by the market. "Foreign investors will always have an interest in this kind of companies," he said.
आज से खुलेगा कारट्रेड टेक का IPO
लिस्टिंग गेन या लंबी अवधि, कहां बनेगा पैसा?
कंपनी के लिए क्या पॉजिटिव, क्या निगेटिव?
जरूर देखिए अनिल सिंघवी का ये वीडियो...#EditorsTake #CarTrade #CarTradeIPO #IPO @AnilSinghvi_ pic.twitter.com/01gsyVcUkE
— Zee Business (@ZeeBusiness) August 9, 2021
The Market Guru said "Here you have to take a call on future if actually the company can grow that big or can bring such high valuations. If you will see the current valuations, revenue and profitability then you will think why so much of money but there are some investors who like these kinds of IPOs."
He said CarTrade is a profit-making company, and it is one kind of big achievement for the company. It has started making profit before the IPO but also data of only 3 years is required to be shown in the offering, he added.
Secondly, it is a cash-rich company with an investment of 600-650 crore and is cash equivalent and debt free, he said.
Talking about the negative aspect, the Market Guru said that it is an offer for sale and all the existing investors are selling their shares. He added that this type of IPOs are coming now-a-days as stock market is booming.
He said that secondly there is competition. There is no entry barrier and hence tough competition can come anytime. While on valuations the market expert said that it is not cheap. He said it is to be considered that the stock is at a multiple of 200 PE but seeing the future earning it can be thought of.
He concluded by saying that investors who can take risk and knows the risk related to business model can invest in the company.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Mutual Fund SIP: Invest Rs 1000 per month to grow your corpus to over Rs 3.5 core at retirement, know calculations
Top 7 Stocks to Track: This defence PSU multibagger can give 45% return; food delivery app stock likely to rise 19%
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
02:29 PM IST