March Capital Offloads CarTrade Shares Worth Over INR 70 Cr in Bulk Deals

• ByStartupStory     |    March 7, 2024

In a strategic move, pre-IPO shareholder March Capital has successfully executed a substantial offloading of nearly 9.5 Lakh shares of online classifieds and auto auction platform CarTrade Technologies. This transaction, valued at over INR 70 Cr, unfolded through bulk deals on Wednesday (March 6).

March Capital’s holdings in CarTrade, facilitated via MCP3 SPV and Springfield Venture International, witnessed noteworthy shifts in their stakes. Springfield Venture International divested 6.32 Lakh CarTrade shares, constituting a 1.35% stake and amounting to INR 46.7 Cr. Simultaneously, MCP3 SPV undertook the sale of 3.16 Lakh shares, translating to a 0.67% stake, with a transaction value of INR 23.3 Cr.

This marks the first occasion of Springfield Venture International selling CarTrade shares post the company’s IPO, during which they participated in the offer for sale. BSE data reveals that as of the quarter ending December 2023, Springfield held 16.43 Lakh shares, while MCP3 SPV held 12.99 Lakh shares—a status unchanged since the IPO. Following the recent divestment, March Capital is anticipated to retain 19.94 Lakh shares in CarTrade.

Despite ICICI Prudential Mutual Fund acquiring 6.77 Lakh of the offloaded shares in bulk deals, including 2.71 Lakh shares by ICICI Prudential Asset Management Company, CarTrade’s stock experienced a downturn. The shares concluded the trading session 2.8% lower at INR 724.55 on the BSE.

It’s noteworthy that CarTrade shares had been on an upward trajectory in recent trading sessions. However, the bulk deal and subsequent market reaction have added a layer of complexity to the stock’s performance.

In its latest reported quarter, Q3 FY24, CarTrade disclosed a net loss of INR 23.5 Cr, primarily attributed to the closure of the auto sales division of the OLX business during the period. Notably, the company had been net profitable in the corresponding period of the previous year. CarTrade’s operating revenue exhibited robust growth, surging over 42% year-on-year to INR 138.6 Cr in Q3 FY24.

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