Yesterday, after the market closure CarTrade Tech Limited announced it has entered into a share purchase agreement with Sobek Auto India Private Limited and its holding company OLX India B.V. The agreement involves the acquisition of a 100% stake in Sobek from OLX India B.V., subject to certain conditions and terms outlined in the agreement. The company will purchase OLX India’s auto sales business in a deal worth Rs 537.43 crore.
Over the past three years, Sobek’s turnover in FY22 stands at Rs 1,110.40 crore, FY21 stands at Rs 592.28 crore and for FY20 it stands at Rs 556.42 crore.
The acquisition aligns with CarTrade Tech’s strategic objectives, aiming to gain synergistic benefits for its existing businesses. The company said no governmental or regulatory approvals are required for the acquisition it further said completion of the acquisition is expected to take around 21 to 30 days, subject to mutual agreement between the parties.
Sobek, incorporated on October 30, 2018, runs an automotive digital platform and a classified internet business. On June 30, 2023, Sobek acquired the classifieds internet business from OLX India Private Limited through a business transfer agreement. As part of the acquisition, Sobek also entered into an Intellectual Property License Agreement and a Transitional Support Agreement to use certain brands and technology.
Yesterday the shares of CarTrade closed at Rs 486.85, today it opened at Rs 521.95. it closed around Rs 551.15, up by 13.21%. It has a 52-week high of Rs 735 and a 52-week low of Rs 341.05. The company has a market capitalisation of around Rs 2580.
CarTrade Tech Ltd is a multi-channel auto platform provider company with coverage and presence across vehicle types and value-added services. The company operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz. The platform connects new and used automobile customers, vehicle dealers, vehicle OEMs, and other businesses to buy and sell different types of vehicles. The company offers a variety of solutions across automotive transactions for buying, selling, marketing, financing, and other activities.