CarTrade Tech Share Price – Three Most Likely Causes
CarTrade Tech’s share price opened to the downside on the NSE on Monday. The stock hit an intraday low of Rs 595, but since then has pared the early morning losses to trade around Rs 630 a share. There are a few possible reasons for the recent share price dip. A potential selling pressure could be from pre-IPO investors who might be selling their shares to make way for new investors. Here are the three most likely causes for CarTrade Tech’s share price:
Pre-IPO investors: CarTrade Tech floated 4.66 crore shares, of which about 2.66 crore shares were locked in by a one-year lock-in period. Since the IPO, these shares have been priced below the IPO price. Moreover, the lock-in period for pre-IPO investors is coming to an end today. This means that the share price of CarTrade Tech might plunge further. If this happens, it could mean that the company will face a massive loss of equity.