CarTrade shares GMP dips ahead of listing

CarTrade IPO grey market premium

Market observers said that dip in CarTrade share price in grey market after the share allotment was expected. Since, there is still 5 full days left for likely listing of the public issue, we can expect some recovery in the CarTrade share price in the grey market. They said that after the allotment of shares, CarTrade shares went down in the grey market and in evening yesterday, its shares were available at a premium of ₹125 — lowest CarTrade GMP since it became available for trade in grey market. However, they were happy with CarTrade GMP today being at ₹175 and expected some more gains in upcoming days.

What this CarTrade GMP mean

According to market observers, CarTrade IPO GMP today at ₹175 means the grey market is expecting CarTrade share listing at around ₹1793 ( ₹1618 + ₹175) — around 10 per cent higher from its issue price of ₹1585 to ₹1618 per equity share.

However, stock market experts maintained that grey market is not an official data. It’s financials of the company that matters most. They advised bidders to rely on the company’s balance sheet.

Highlighting the fundamentals that augurs well for CarTrade IPO; Saurabh Joshi Research Analyst at Marwadi Shares and Finance Limited said, “Considering the FY-21 adjusted EPS (Earnings Per Shares) of ₹22.06 on a post-issue basis, the company is going to list at a P/E of 73.35 with a market cap of ₹7,416 crore. There are no listed companies in India that engage in a business similar to that of the Company.”

The tentative CarTrade IPO listing date is 23rd August 2021.