Professionally managed companies and having no identifiable promoters have a mandatory lock-in of one year for all pre-IPO equity shareholders from the date of allotment of equity shares.
Traders witnessed a sharp sell-off in Zomato shares, whose lock-in ended last month, as pre-IPO investors dumped huge volumes of shares after a sharp correction over the counter.
After the end of the mandatory lock-in, CarTrade Technologies shares fell 6 per cent to Rs 595.90 on Monday, recovering to Rs 625.65 as of 10.50 am. It had closed at Rs 633.30 on Friday.
However, the counter of CarTrade Tech did not see an astronomical increase in trading volume. As of 11 am on Monday, around 14,000 shares of the company worth Rs 85.62 lakh were traded on the BSE.
CarTrade Tech has issued around 4.66 crore shares, out of which around 2.66 crore shares are stuck with pre-IPO investors, who were unable to exit the counter due to the one-year lock-in.
The shares of CarTrade Tech were listed on 20 August 2022 with a marginal discount, as against its issue price of Rs 1,618.
However, the stock failed to touch even its issue price post listing and had fallen over 70 per cent to a record low of Rs 462.10 in February this year. The stock has risen nearly 30 percent since those levels.
The Mumbai-based auto platform returned to the black as it reported a consolidated profit of Rs 3.31 crore for the first quarter of financial year 2022-23, as against a loss of Rs 46.12 crore in the corresponding quarter of the previous year.
The company’s total income grew by 47 per cent year-on-year (YoY) to Rs 92.77 crore during the period April-June 2022, as against Rs 63.04 crore in the corresponding period of the previous year.
domestic brokerage firm
Have placed a Buy Call on CarTrade Tech with a target price of Rs.840. Incorporated in the year 2000, CarTrade Tech is a smallcap company working in the service sector.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)