Tracxn Technologies IPO GMP, Subscription, Review; Should You Buy on Last Day?

Tracxn Technologies IPO Day 3: The three-day initial public offering (IPO) of Tracxn Technologies was subscribed 54 per cent on the second day of offer on Tuesday. The public issue will close on Wednesday, October 12, 2022.

The public issue is entirely an offer-for-sale (OFS) of shares by promoters and investors. The OFS will see sale of up to 76.62 lakh shares each by promoters Neha Singh and Abhishek Goyal, up to 12.63 lakh shares each by Flipkart founders Binny Bansal and Sachin Bansal. At the upper end of the price band, the initial share sale is expected to garner Rs 309 crore.

Tracxn Technologies IPO: Subscription Status

Investors have, so far, bought 1.31 crore equity shares against 2.12 crore shares on offer, data available with exchanges show. The portion set aside for retail investors was fully booked on the first day itself and has been bought 2.96 times the allotted size, while the part set aside for non-institutional investors has been subscribed 30 per cent. Qualified institutional investors have still not bought a single share.

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 per cent. 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 observers, Tracx Tech shares are available at a premium (GMP) of Rs 8 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.

Tracxn Technologies IPO: Should you Subscribe?

Swastika Investmart said, “Tracxn would find it difficult to substantially grow its client base and top line in the coming years, it said. Finally, “the exorbitant valuation of price to sales of ~12.5 (based on FY22 numbers and upper band price) makes it very difficult to recommend this issue. Thus we have assigned avoid rating for this issue.”

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, and 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.

Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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