Capital Group Acquires 3.03% Stake in CarTrade Tech for ₹439.91 Crore

Mumbai, November 28: Financial services firm Capital Group has purchased 3.03% stake in CarTrade Limited. The deal is valued at ₹439.91 crore, and was executed by Capital Group through an open market transaction. According to bulk deal data filed on the BSE, Capital Group acquired the stake through its SmallCap World Fund. The deal saw SmallCap World Fund acquire 14.44 lakh equity shares of CarTrade, representing a 3.03% stake. The shares were acquired at an average price of ₹3,044.58 per share.

CarTrade Tech Limited (NSE: CARTRADE, BSE: 543333) is a multi-channel online auto platform in India. It provides a full range of services for buying, selling, and financing new and used vehicles. It operates a house of brands that together form a comprehensive digital automotive ecosystem, catering to consumers, vehicle dealerships, and OEMs (Original Equipment Manufacturers). The company was established in 2000, and is headquartered in Mumbai, Maharashtra.

Goldman Sachs Offloads 2.25% Stake

On the same day, global investment firm Goldman Sachs sold 2.25% stake in CarTrade. The firm sold 10,71,379 shares of the company through three of its affiliates, at an average price of ₹3,044.49 per share. The deal was valued at ₹326.18 crore.

Shares Rise by 1.73% at ₹3,105.50

As of 10:00 AM, CarTrade share price was up by 1.73%, or 53 points, and was trading at ₹3,105.50. Until now, the shares have traded within a range of ₹3,116.40 and ₹3,055.50. The traded volume stood at 49.31 thousand shares, with the company’s market cap at ₹14,603 crore. The shares have their 52-week high at ₹3,290 and their 52-week low at ₹1,275.

Investor Takeaway

The stake sale by Goldman Sachs and the acquisition by Capital Group are factors that have influenced investor sentiments. However, in this case, investors have reacted positively to the block deal as a higher stake was picked up by Capital Group (3.03%), compared to the stake sold by Goldman Sachs (2.25%). The shares of CarTrade have provided high returns to the investors as they have more than doubled in the last six months. Investors will hope that the shares can sustain positive performance in the coming week.

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