CarTrade Shares Fall 5% After Acquisition Talks With CarDekho Called Off

CarTrade Tech shares took a hit on November 27, falling over 5% after the company announced that its proposed acquisition of rival CarDekho would not proceed.

The shares opened at ₹3,004.30 per share, ending a three-session gaining streak as investors digested the news of the deal being called off.

Market Performance: CarTrade Shares in Focus

The market reaction reflected the significance of the acquisition in shaping the digital auto space in India.

• Opening Price: ₹3,004.30 per share
• Drop: ~5% from previous levels

The decline comes after months of speculation and excitement around a potential consolidation that would have reshaped competition in India’s automotive classifieds sector.

Main News: CarTrade Calls Off CarDekho Acquisition

CarTrade confirmed in an exchange filing on November 27 that discussions with Girnar Software, the parent company of CarDekho, have ended.

Key points:

• Both parties mutually decided not to proceed with the proposed transaction.
• The talks focused solely on automotive classifieds businesses—CarDekho and BikeDekho—not financing, insurance, or other non-automotive segments.
• This disclosure formally closes months of discussions around what could have been one of India’s largest digital auto consolidation moves.

Earlier in November, CarTrade had acknowledged preliminary discussions for a potential merger with CarDekho, following reports that the deal could have been valued at over $1.2 billion and structured as a cash-and-equity transaction.

Company Details: Current Focus

With the acquisition talks concluded, CarTrade is turning its attention back to its core platforms.

The company plans to continue scaling:

• CarWale – used and new car listings
• BikeWale – two-wheeler classifieds
• OLX India – general automotive classifieds
• Shriram Automall – vehicle auctions

CarTrade stated that its current businesses have strong fundamentals, operate in large and growing markets, and still offer significant growth potential.

CarTrade Share Price History: Recent Trends

Despite the drop today, CarTrade has shown strong performance over the past months:

• One-Month Gain: ~14%
• Six-Month Gain: Over 100% (doubled in value)
• Current P/E Ratio: ~90

The stock has demonstrated resilience and continued investor interest, reflecting confidence in CarTrade’s existing business model and market position.

Summary: Key Takeaways

CarTrade’s announcement ending acquisition talks with CarDekho marks a pivotal moment in India’s digital auto space.

Despite the 5% drop in stock price, CarTrade is concentrating on expanding its core platforms. With a strong presence in car and bike classifieds, the company continues to pursue growth in India’s growing automotive market.