Tracxn Technologies IPO Day 2: The three-day initial public offering (IPO) of Tracxn Technologies received a tepid response from investors. The last day to subscribe to the public offer is October 12 (Wednesday).
Tracxn Technologies IPO: Subscription Status
Tracxn Technologies has garnered bids for 32 per cent or 68.95 lakh shares against an IPO size of 2.12 crore shares on October 11, the second day of bidding. Retail investors bought 1.65 times of the allotted quota, while non-institutional investors have bid for 9 per cent of the number of shares allotted to them. Qualified institutional buyers have not started bidding yet. The company has reserved 75 per cent of its offer for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining for retail investors.
The company had lowered its offer size to 2.12 crore shares from 3.86 crore shares after mobilising Rs 139 crore through anchor book last Friday.
Tracxn Technologies IPO: Price Band
Flipkart founders Sachin Bansal and Binny Bansal-backed Tracxn Technologies is set to mop up Rs 309.37 crore through its IPO at the upper end of the price band of Rs 75-80 per share. It is entirely an offer-for-sale and so the company will not receive any funds from the issue.
Tracxn Technologies IPO: Objectives of the Issue
The objects of the Offer are to achieve the benefits of listing the equity shares on the stock exchanges and the sale of shares by the selling shareholders (being Neha Singh, Abhishek Goyal, Elevation Capital, Accel India IV (Mauritius) Limited, SCI Investments V, Prashant Chandra, Binny Bansal, Sachin Bansal, WGG International Limited, Sahil Barua, Deepak Singh, Trustees, NRJN Family Trust, Milliways Fund LLC, Rathnagirish Mathrubootham, Trustees, Kolluri Living Trust, Apoletto Asia Ltd and Manoj Kumar Gandhi) in the offer.
The company will not get any proceeds from this public offer and the proceeds will entirely go to the promoters.
Tracxn Technologies IPO: Valuation
“The company is bringing the issue at a price band of Rs 75-80 per share at P/S multiple of 14 on FY22 basis,” said Hem Securities which has a subscribe for long term rating on the issue for a couple of reasons.
Tracxn Technologies IPO: Financials
“On the financials front, the company’s revenue has grown at a CAGR of 30.4%. Although the revenues have increased, EBITDA and PAT have been in negative for the past 2 years. So, an investor needs to keep a watch on the financials for FY23,” said Religare Broking research.
Tracxn Technologies IPO: GMP Today
As per market observes, Tracx Tech shares are commanding a premium (GMP) of Rs 7 in the grey market today. The finalisation of the basis of share allotment could happen on Monday, October 17, 2022 and the shares of the company are expected to list on leading stock exchanges BSE and NSE this month on Thursday, October 20, 2022.
Founded in 2013, Bengaluru-headquartered company Tracxn Technologies operates on a software as a service (SaaS) model and provides market intelligence data for private companies. As of June this year, the company had 3,271 users across 1,139 customer accounts in over 58 countries.
It is a comprehensive B2B information platform that identifies, tracks and analyses private market companies and startups on deal sourcing, deal diligence and has the largest global coverage in emerging technology sectors such as artificial intelligence, virtual reality, robotics, and blockchain.
IIFL Securities is the sole book-running lead manager to the public issue and Link Intime India Private Ltd is the registrar of the initial share sale.
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