homemarket Newsstocks NewsCarTrade Tech shares gain 14% after announcing acquisition of Sobex from OLX for Rs 537 crore
CarTrade Tech shares gain 14% after announcing acquisition of Sobex from OLX for Rs 537 crore
As part of the acquisition, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.
Shares of CarTrade Tech Ltd. rose as much as 14 percent on Tuesday after the company announced that it will acquire a 100 percent stake in Sobek Auto India Pvt. Ltd. from OLX India B.V. for Rs 537.43 crore. This is the biggest single-day jump for the stock in a month and the second-biggest since listing.
The objective of the acquisition is in furtherance of the strategic objectives of the company to undertake investments that provide synergistic benefits to the existing businesses of CarTrade Tech.
Incorporated on October 30, 2018, Sobek is a company registered under the Companies Act, of 2013. It is engaged in the business of running an automotive digital platform and a classified internet business.
On June 30, 2023, Sobek acquired the classifieds internet business from OLX India Private Ltd on the terms and conditions agreed under a business transfer agreement.
As part of the acquisition, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.
Founded in 2009, CarTrade is backed by marquee investors -- Warburg Pincus, Temasek, JPMorgan, and March Capital. The CarTrade platform allows customers to buy and sell used cars as well as new cars.
The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.
For financial year 2022, Sobek reported revenue of Rs 1,110 crore, compared to Rs 592.2 crore in financial year 2021 and Rs 556.4 crore in 2020.
Shares of CarTrade Tech are trading 13.3 percent higher at Rs 553.40.
First Published: Jul 10, 2023 10:41 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | Assault allegations or political accusations— what's Swati Maliwal controversy all about
May 19, 2024 2:25 PM
Phase five Lok Sabha polls: Rae Bareli, Amethi among 14 UP seats going to polls on Monday
May 19, 2024 1:03 PM
AAP protest walk: Arvind Kejriwal challenges BJP to arrest entire party, Delhi Police imposes Section 144
May 19, 2024 12:26 PM
Terror attacks in Kashmir raise concerns ahead of May 20 and May 25 election
May 19, 2024 12:15 PM