On Monday, June 24, a notable trade occurred in CarTrade Tech shares, with a total of 71 lakh shares, which represents 15.1% of the company’s equity, changing hands in block deals. The shares were traded at a price of ₹828 each. However, the identities of the buyers and sellers involved in this transaction have not been officially revealed.
According to CNBC-TV18, sources have indicated that Highdell Investment and MacRitchie Investments Pte were the initiators of this significant block trade. The total deal was initially valued at around ₹400 Crore, with a possibility of increasing by another ₹100 Crore. There is a 75-day lock-up period for this transaction, meaning that the shares involved in the trade cannot be sold for the next 75 days.
Details of the Block Trade
The block trade is structured to include a base size that covers 10.4% of CarTrade Tech’s total equity. There is also an option to increase this base size up to 13%. The breakdown of the shares sold is as follows:
– Highdell Investment sold a 7% stake.
– MacRitchie Investments sold a 3.4% stake.
– Additionally, there is a potential upsize option, with Highdell Investment able to increase their sold stake by another
1.7% and MacRitchie Investments by another 0.9%.
Pricing and Market Reaction
The floor price set for this transaction was ₹820 per share, which represents a 4.3% discount compared to the last closing price of CarTrade Tech shares on the preceding Sunday. As of the end of the March quarter, Highdell Investment held a 17.36% stake in CarTrade Tech, while MacRitchie Investments held a 16.3% stake.
On the morning of June 24, CarTrade Tech shares were trading 3% lower at ₹831.65 each as of 9:20 am. Despite this short-term drop, the stock has shown significant growth over the past year, with a notable increase of 74%.
Summary
This substantial trade involving CarTrade Tech shares highlights significant movements in the company’s equity by major investors. With a 75-day lock-up period and a floor price offering a slight discount, this transaction marks a crucial moment for the company’s market performance. The involvement of Highdell Investment and MacRitchie Investments, both holding considerable stakes, adds to the weight of this deal in the financial market.
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