CarTrade Tech Ltd has fixed the price band of its initial public offering (IPO) at Rs 1,585-1,618 a share. The issue will open on 9 August and close on 11 August. CarTrade, which helps users find pre-owned and new cars, is backed by American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan, and March Capital Partners.

The IPO comprises a pure offer for the sale of 18.53 million shares by existing shareholders and promoters. The OFS will see a sale of 2.26 million shares by CMDB II, up to 8.41 million shares by Highdell Investment, up to 5.08 million shares by Macrithie Investments Pte, up to 1.77 million shares by Springfield Venture International, and 1.83 lakh shares by Bina Vinod Sanghi.

Currently, CMDB II holds an 11.93 per cent stake in the company, Highdell Investment, MacRitche Investment Pte, and Springfield Venture International have 34.44 per cent, 26.48 per cent and 7.09 per cent stake, respectively, in the company.

At the upper end of the price band of Rs 1,618, the firm hopes to raise around Rs 2,998.15 crore.

“CarTrade tech is the only profitable online second-hand seller/car aggregator when compared to its peers Cars24, CarDekho, Mahindra First Choice, and Droom. (as per the DRHP, which mentions FY20 financials) This does make the IPO interesting,” said Aditya Kondawar, COO, JST Investments. “Total addressable market (TAM) is pegged at $14.4 billion, and revenue of all players combined was a minuscule Rs4,693 crore in FY20.