Shares of CarTrade Technologies Ltd rallied 5% on 27 November after the company announced that it and Girnar Software had mutually decided not to proceed with the proposed acquisition of CarDekho and BikeDekho.

CarTrade was in talks with Girnar Software about a possible merger of CarDekho and BikeDekho’s automotive classifieds businesses.

In its exchange filing, CarTrade claimed that it is completely committed to strengthening its existing portfolio of companies 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.

Earlier, on 11 November, CarTrade Tech was in talks to purchase CarDekho in a cash-and-stock deal valued at more than $1.2 billion, potentially creating India’s largest comprehensive digital auto marketplace.

The combination would have combined CarTrade’s expertise in dealer auctions, vehicle financing, and B2B remarketing with CarDekho’s reach in consumer listings, insurance, and digital retail. According to industry insiders, the integration has the potential to alter India’s auto-tech ecosystem by offering a seamless digital experience that includes vehicle search, financing, insurance, and resale.

At 12:13 pm, the shares of CarTrade were trading 4.72% lower at Rs 3,025.90 on NSE.

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