Tracxn Technologies IPO Listing Today: Private market intelligence platform Tracxn Technologies will debut in the market on October 20. As per the information available on the official website of BSE, from Thursday, October 20, 2022, the equity shares of Tracxn Technologies shall be listed and admitted to dealings on the exchange in the list of the ‘B’ group of securities. It will be the 22nd company to get listed this calendar year. Tracxn has raised Rs 309 crore through its public issue. As it was a complete offer-for-sale, the selling shareholders (promoters as well as investors including Flipkart founders Binny Bansal and Sachin Bansal) received those funds after reducing issue expenses.
The price band was at Rs 75-80 per share for the public issue that was subscribed just 2.01 times during October 10-12, the lowest subscription amongst IPOs launched since August 2022.
Tracxn Technologies IPO Subscription Status
The entry of qualified institutional buyers (QIBs) on the final day of subscription helped the IPO sail through as they bought 1.66 times the allotted quota. Also, 75 per cent of the offer was reserved for QIBs, which experts feel the focus by the company may be on long-term investment.
Retail investors showed good interest in the IPO as they subscribed 4.87 times the portion set aside for them, while non-institutional investors seemed to be less interested in the offer as they bought 80 per cent shares of the reserved portion.
Tracxn Technologies IPO Financials
The company recorded a profit of Rs 0.8 crore on revenue of Rs 18.4 crore for the quarter ended June FY23 against a loss of Rs 0.7 crore on revenue of Rs 14.97 crore in the corresponding period last fiscal, which experts feel is likely to improve in future.
On a full-year basis, the company has been posting losses though revenue has been scaling higher year-after-year. Loss for the year ended March FY22 stood at Rs 4.8 crore against loss of Rs 5.3 crore in FY21 and loss of Rs 5.4 crore in FY20, while its revenue from operations grew at a CAGR of 30.4 percent during FY20-FY22 with 70 percent of income from international operations, driven by rising customers base.
“The company reported a profit only in Q1FY23 (minor). With operating leverage kicking in, profitability is likely to improve, going forward,” said ICICI Direct.
Tracxn Technologies IPO GMP
Even the grey market seems to be not in favour of the company’s pricing as experts said Tracxn shares traded at 4-5 percent discount to the offer price, ahead of its listing. The grey market is an unofficial platform for trading in IPO shares and generally investors look at grey market to know about expected listing price.
Tracxn Technologies IPO Listing Gains
Given the muted response to the IPO, high valuations (not only FY22 basis but also on a Q1FY23 basis), the IPO being entirely an offer-for-sale, and rising fears of global recession, the listing may be either at par or at a discount to the issue price of Rs 80 per share, experts said.
“Tracxn Technologies Ltd is expected to have a muted to negative listing owing to high valuations, less than stellar subscription numbers, and the nature of the issue being offer for sale,” Aayush Agrawal, Senior Research Analyst at Swastika Investmart said.
Agrawal said that due to the rising interest rates globally and recessionary conditions in major markets like North America and Europe, the private equity markets, venture capital markets, investment banks, and family offices are witnessing a significant cutback in terms of activities and traction; additionally, M&A activities have been subdued.
The company will find it difficult to substantially grow its client base and topline in the coming years, he said.
Prashanth Tapse, Senior VP Research at Mehta Equities also said looking at lacklustre response from investors and high competition intensity in the sector, the listing can be below the issue price, while Astha Jain, Senior Research Analyst at Hem Securities expects a flat listing.
Tracxn Technologies is one of the leading global market intelligence providers for private company data and as per Frost & Sullivan report, it ranks among the top five players globally in terms of the number of companies profiled offering data of private market companies.
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