MUMBAI : CarTrade Tech Ltd, the multi-channel auto platform, is the latest to join the initial public offering (IPO) bandwagon. It is a pure offer for sale (OFS) issue, which means CarTrade would receive no proceeds from this share sale for business purposes. The price band for the issue is ₹1,585–1,618 per share and the average cost of acquisition for these investors ranges between ₹270 per share and ₹605. Note that the Zomato stock now trades at ₹130 per share, representing about 70% appreciation from its issue price. The fact that large investors are selling large amounts of shares to recoup their investment should also act as a warning bell for public market investors.

Source: Mint August 09, 2021 07:30 UTC