The companies, which are professionally managed and have 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 saw a sharp sell-off in shares of Zomato, whose lock in had ended last month, as the pre-IPO investors offloaded heavy volume of shares following the steep correction in the counter.
After the end of mandatory lock-in, shares of CarTrade Technologies dropped as much as 6 per cent to Rs 595.90 on Monday, before recovering to Rs 625.65 by 10.50 am. It had settled at Rs 633.30 on Friday.
However, volumes of trade in the CarTrade Tech’s counter did not see an astronomical rise. As of 11 am on Monday, about 14,000 shares of the company worth Rs 85.62 lakh were traded on BSE.
CarTrade Tech has floated 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 one year lock-in.
Shares of CarTrade Tech were listed at the bourses on 20 August 2022 with marginal discount, compared to its issue price of Rs 1,618.
However, the stock failed to touch even its issue price since listing and had plunged more than 70 per cent to record lows of Rs 462.10 in February this year. The stock has risen close to 30 per cent since those levels.
The Mumbai-based auto platform returned to black as it reported a consolidated profit after tax 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 last year.
The company’s total income grew 47 per cent year-on-year (YoY) to Rs 92.77 crore during the April-June 2022 period as against a total income of Rs 63.04 crore in the same period previous year.
Domestic brokerage firm
has buy call on CarTrade Tech with a target price of Rs 840. Incorporated in the year 2000, CarTrade Tech is a smallcap company operating in the services sector.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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