CarTrade Tech down 4% on huge block deal

According to data available on the exchanges, as many as 71 lakh shares, or 15.1% equity, of multi-channel auto platform CarTrade Tech worth ₹588.3 crore changed hands through open market transactions.

The deal was executed at an average price of ₹828 per share, which was around 3.5% lower than the stock’s previous close of ₹857.80 on Friday on the National Stock Exchange of India (NSE).

Consequently, the CarTrade Tech stock fell as much as 3.7% on Monday to hit an intraday low of ₹820 on NSE. The share price is up nearly 15% year-to-date in 2024 while surging more than 73% in the past year.

The buyers and sellers in Monday’s block deal were not immediately known, though media reports said private equity firms Highdell Investment and MacRitchie Investments Pte were planning to sell 7% and 3.4% stake, respectively, in the company.

According to reports, the planned block deal was valued at ₹400 crore, with an option to increase it by an additional ₹100 crore. The lock-up period for this transaction was 75 days.

As of March 31, 2024, Highdell Investment held a 17.36% stake in CarTrade Tech, while MacRitchie owned a 16.3% stake.

On Friday, CarTrade Tech also informed the exchanges that the Income Tax Department has issued a demand letter to the company for a shortfall in payment of tax deducted at source (TDS).

CarTrade said that it received the demand notice for ₹15.79 lakh on June 21, but it assured shareholders that the demand letter would have “no material impact” on the financial and operational performance of the company.

“The company will file necessary rectification to rectify the demand and take necessary action in this regard,” it said.