CarTrade Tech shares fall 5% after announcing termination of talks for CarDekho, BikeDekho

Shares of CarTrade Technologies Ltd. fell as much as 5% on Thursday, November 27, after announcing that the company and Girnar Software have mutually decided to not proceed with the proposed acquisition of CarDekho and BikeDekho.

CarTrade was in talks with Girnar Software for a potential consolidation opportunity in the automotive classifieds business of CarDekho and BikeDekho.

In its exchange filing, CarTrade stated that it continues to remain fully focused on strengthening its existing portfolio of businesses across platforms, which includes CarWale, BikeWale, OLX India and Shriram Automall.

"We believe that our current businesses have strong fundamentals, operate in large and expanding Total Addressable Market (TAM), and provide significant headroom for growth. The company will continue to pursue its strategic roadmap, drive products and technology innovation, and enhance value across its diversified ecosystem," CarTrade wrote in its statement.

CNBC-TV18 had reported on November 11 that CarTrade Tech is in talks to acquire CarDekho in cash-and-stock deal, likely worth over $1.2 billion, which could create India's largest integrated digital auto marketplace.

The merger would have combine CarTrade’s leadership in dealer auctions, vehicle financing and B2B remarketing with CarDekho’s scale in consumer listings, insurance and digital retail. Industry observers say the integration could redefine India’s auto-tech ecosystem, enabling an end-to-end digital experience spanning vehicle discovery, financing, insurance and resale.

CarTrade Tech's profit more than doubled from last year in the most recent quarter, while its revenue grew by 29% during the same period.

CarTrade Tech shares are trading 5.2% lower in early trading on Thursday at ₹3,010. The stock is up nearly 10x from its March 2023 low of ₹340.

(The CNBC-TV18 Newsbreak from November 11 was by Rachna Dhanrajani and Vivek Iyer)