CarTrade Tech shares rise over 14% on plans to buy OLX India's auto business
CarTrade Tech saw a 14% increase in share price after announcing the acquisition of OLX India's vehicle sales division for ₹537 crore.
CarTrade Tech share price surged over 14% on Tuesday's trade following the announcement that the company would buy OLX India's vehicle sales division for ₹537 crore. CarTrade Tech shares opened at intraday low of ₹521.95 apiece on BSE.
According to an exchange filing, the company signed a share purchase agreement with Sobek Auto India Private Limited and its parent company OLX India BV for the purchase of a 100% shareholding in Sobek from OLX India BV.
“This is to inform you that on July 10, 2023 CarTrade Tech Limited (the “Company”) has entered into a share purchase agreement with M/s Sobek Auto India Private Limited (“Sobek”), and its holding company OLX India B.V. for acquisition of 100% stake of Sobek from OLX India B.V. subject to completion of certain conditions and on the terms and conditions agreed between the parties in the share purchase agreement,” said the company in an exchange filing.
The company in an exchange filing stated that the transaction is conditional on the fulfilment of specific requirements and is subject to the terms and circumstances set forth in the share purchase agreement by the parties. This could take as long as 21 to 30 days, or however long the parties decide.
Sobek is a company incorporated under the Companies Act, 2013. It operates an online classifieds business and a digital platform for the automotive industry.
According to the terms and conditions outlined in a business transfer agreement, Sobek bought OLX India Private Limited's online listings business on June 30, 2023.
On the technical front, as per trendlyne data, the stock price fell 27.6% and underperformed its sector by 33.8% in the past year.
“After a long underperformance, the stock has recently witnessed buying interest as good volumes have been seen along with price upmoves. The short term momentum seems positive with immediate support placed around ₹480,” said Ruchit Jain, Lead Research Analyst at 5paisa.
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