CarDekho to launch IPO worth ₹3,000 crore!
CarDekho, a well-known company in the auto-tech sector, is soon going to take its big step in the stock market. CarDekho’s parent company Girnar Software has started preparing for a big IPO. If reports related to the market are to be believed, the company is going to bring an issue of around Rs 3,000 crore. The draft red herring prospectus (DRHP) for this is expected to be filed between July to September quarter. With this step the company wants to achieve a huge valuation of Rs 13,000 crore.
Preparing to enter the stock market
According to the report of Economic Times, two types of options can be seen for investors in this issue. There is a possibility of including both Fresh Issue and Offer for Sale (OFS). Fresh issue simply means that the company will launch new shares in the market, the money for which will go directly into the company’s account. At the same time, through Offer for Sale, existing investors of the company will be able to book profits by selling their stake in the market. However, important information like the exact size of this IPO, its complete structure, price band of shares will be revealed only when the official draft document (DRHP) is submitted to the market regulator SEBI.
What will the company do with the money raised from IPO?
Whenever a company raises thousands of crores of rupees from the market, the first question that arises in the minds of investors is what will happen with this money. CarDekho is planning to invest the huge amount received from this IPO in expanding its business. The company aims to expand the scope of its existing operations. This capital will be used to accelerate future development plans. Apart from this, once listed in the stock market, a big advantage for the company will be that it will be much easier to raise capital in future also if needed. This will also strengthen the financial credibility of the company.
Business is not limited to just vehicle listing
Before betting in the stock market, it is very important to understand the business model of any company. Generally people think that CarDekho is just a website where new or used cars can be seen. In reality its scope has become very large. It is a complete digital automobile platform. From researching about a new car, buying or selling an old car, taking finance (loan) on it, getting motor insurance, all the facilities are available here. Not only this, it also provides technical solutions to dealers from doing automobile research. Today, it is not just a listing platform, but has become a complete ecosystem of the automobile sector.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
