- By Vaamanaa Sethi
- Tue, 11 Jul 2023 01:23 PM (IST)
- Source:JND
The shares of multi-channel auto platform CarTrade rallied nearly 17% on the National Stock Exchange (NSE) in Tuesday’s session after it said that it will acquire 100% stake in Sobek Auto India Private Limited from Olx India BV.
The stock surged 16.98 per cent to hit a day high of Rs 569.50 over its previous close of Rs 486.85. Around 86,000 shares changed hands today on BSE, which was way more than the two-week average volume of 9,761 shares, as per media reports.
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The acquisition will be worth around Rs 537.43 crore, which will be paid on the completion date of the acquisition and the nature of the deal would be cash, the company said in a filing to the exchanges.
The stock rallied after trading in red for three consecutive sessions, losing over 5%. The stock is currently trading at a discount of 25% from its 52-week high of Rs 735.95.
The acquisition is in furtherance of the strategic objectives of the company to undertake investments which provide synergistic benefits to the existing businesses of CarTrade Tech, it said.
The indicative time period for the completion of the acquisition will be between 21 to 30 days. The exchange filing further said that there will not be any requirement for governmental or regulatory approvals for the acquisition.
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CarTrade platform runs several brands which includes CarWale, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz.
"As part of the acquisition of Sobek, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology," the company said in its regulatory filings.
According to media reports, the stock has been an underperformer and lost Rs 114.05 or 16.87% per share in value terms over the past 12 months.
