Tata Mutual Fund and its associated investment schemes have disclosed a substantial acquisition in CarTrade Tech Limited under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure reveals a strategic increase in the fund house's stake in the automotive technology company through secondary market purchases.

Acquisition Details

The transaction involved the purchase of 90,522 equity shares, representing 0.19% of CarTrade Tech's total share capital. The acquisition was completed on January 28, 2025, through secondary market purchases on the Bombay Stock Exchange and National Stock Exchange of India.

Fund Schemes Involved

The acquisition was made collectively by multiple Tata Mutual Fund schemes acting in concert:

• Tata Balanced Advantage Fund
• Tata Digital India Fund
• Tata India Consumer Fund
• Tata Small Cap Fund
• Tata Value Fund

None of these acquiring entities belong to the promoter or promoter group of CarTrade Tech Limited.

Regulatory Compliance

The disclosure was filed under Regulation 29(1) of SEBI regulations, which mandates disclosure when an acquirer's shareholding crosses certain thresholds. The document was signed by Mr. R. Padmanabhan on behalf of Tata Asset Management Private Limited on January 29, 2025.

The acquisition demonstrates Tata Mutual Fund's continued interest in the automotive technology sector, with CarTrade Tech being a prominent player in India's online automotive marketplace. The fund house's increased stake reflects confidence in the company's business model and growth prospects in the digital automotive space.

CarTrade Tech has expressed strong confidence regarding its performance outlook for current and upcoming quarters, with management anticipating significantly better results in the near term. The automotive technology platform's leadership has communicated positive expectations about the company's operational trajectory and financial performance.

Revenue Growth Expectations

The company has highlighted specific expectations for OLX's revenue performance, with management projecting an increase in the revenue growth rate. This anticipated improvement in OLX's revenue trajectory represents a key component of CarTrade Tech's overall performance expectations.

Margin Improvement Projections

Alongside revenue growth expectations, CarTrade Tech has projected improvements in operational margins. The anticipated margin enhancement suggests the company expects to achieve better operational efficiency and cost management in the upcoming periods.

Management Outlook

The management's confident stance on both current and upcoming quarters reflects their positive assessment of market conditions and internal operational capabilities. This optimistic outlook encompasses both revenue growth acceleration and margin improvement expectations, indicating a comprehensive approach to performance enhancement across key financial metrics.