CarTrade Tech Ltd. witnessed a commendable increase in its stock price when it successfully acquired Sobek Auto India Pvt. Ltd., a prominent automotive digital platform from OLX India. This acquisition strategically aligns with CarTrade Techs’ objectives and offers numerous synergistic advantages. Notably, Sobek has recorded remarkable revenue growth further bolstering the value of this deal. As a result of this milestone acquisition. CarTrade Techs’ shares soared by an impressive 14 percent.
Shares of CarTrade Tech Ltd. witnessed a staggering surge on Tuesday, soaring by a remarkable 14 percent. The awe-inspiring spike came shortly after the company’s announcement regarding the acquisition of Sobek Auto India Pvt. Ltd. in its entirety from OLX India B.V., for an astounding sum of Rs 537.43 crore. This mind-boggling surge marks the largest single-day jump for the stock in an entire month and stands as the second-largest since its listing.
The objective behind this acquisition is to propel the strategic aspirations of CarTrade Tech, aiming to make investments that yield synergistic advantages to its existing businesses. Sobek, a company established on October 30, 2018, operates as an automotive digital platform and a classified internet business, functioning within the framework of the Companies Act of 2013.
Recently, on June 30, 2023, Sobek effectively acquired the classifieds internet business from OLX India Private Ltd, adhering to the terms and conditions outlined in a comprehensive business transfer agreement. In tandem with this acquisition, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement, securing rights to the usage of specific brands and technology.
CarTrade, founded in 2009, boasts an impressive backing from esteemed investors such as Warburg Pincus, Temasek, JPMorgan, and March Capital. The CarTrade platform offers customers the opportunity to engage in the buying and selling of both used and new cars.
This versatile enterprise operates as a multi-channel auto platform, providing comprehensive coverage and services across various vehicle types. Its array of brands, including CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz, further enhance its market presence.
Sobek’s financial performance for the fiscal year 2022 showcased a staggering revenue of Rs 1,110 crore, a notable increase from Rs 592.2 crore in the previous fiscal year of 2021 and Rs 556.4 crore in 2020. At present, CarTrade Tech’s shares are trading at an impressive 13.3 percent higher value, standing at Rs 553.40.
