17 Aug , 2021 By : Kanchan Joshi
CarTrade IPO GMP: CarTrade Tech share allotment has been finalised. So, those who bid for the public issue worth Rs2,998.51 crore are anxiously waiting for the listing of CarTrade IPO. However, bidders are keeping their eye on the grey market too. For such bidders, CarTrade IPO GMP today is Rs260, Rs40 up from its yesterday's share price in the grey market. According to market observers, CarTrade IPO GMP has been oscillating in the range of Rs200 to Rs250 for the last seven days, which means grey market is expecting moderate to reasonable listing gain from the public issue.
CarTrade IPO grey market premium
According to market observers, CarTrade shares started trading in the grey market at a premium of around Rs175. After that till closure of CarTrade IPO bidding, this premium went up to Rs250. But, after the closure of CarTrade IPO subscription, it came down to around Rs200 to Rs210, which was obvious as share price comes down after the closure of a public issue. But, CarTrade IPO grey market premium continued to remain above Rs200. Market observers went on to add that CarTrade IPO GMP remaining in the range of Rs200 to Rs250 indicates that the market is expecting moderate to reasonable listing gain from the public issue.
What this GMP means
Market observers said that CarTrade IPO GMP today is Rs260 against its price band of Rs1585 to Rs1618. This means, grey market is expecting CarTrade IPO listing at around Rs1878 ( Rs1618 Rs260) — near 15 per cent listing gain from the public issue.
Highlighting the fundamentals that may augur well for CarTrade IPO; Abhay Doshi, founder at UnlistedArena.com said, "Company posted total income of Rs2815 million in FY 2021 with adjusted EBITDA margins of 27.62 per cent. Price to sales is almost 30 times, which is way higher than global listed peers." However, he maintained that the issue looks expensively priced at Rs1585 to Rs1618 price band.
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