The share allotment status of Tracxn Technologies’ initial public offering (IPO) is likely to be announced on Monday. The Rs 309-crore initial share sale was subscribed two times at the close of the offer on October 12, helped by heavy demand from retail investors.
The initiation of refunds is likely on Tuesday and the credit of shares to demat accounts is likely on Wednesday. In all likelihood, the stock could list on stock exchanges on Thursday, October 20.
The IPO received bids for 4.27 crore shares against 2.12 crore shares on offer, according to NSE data. The portion for retail individual investors (RIIs) was subscribed 4.87 times and the category for Qualified Institutional Buyers (QIBs) received 1.66 times subscription. The quota for non-institutional investors got subscribed 80 per cent.
The IPO of up to 3,86,72,208 equity shares had a price range of Rs 75-80 a share.
Ahead of its IPO, the firm had garnered Rs 139.22 crore by allocating 17,402,494 shares to anchor investors at Rs 80 a piece.
Founded in 2012 by Neha Singh and Abhishek Goyal, Tracxn have received investments from Ratan Tata, the NRJN Family Trust, Neeraj Arora, Sachin Bansal (Flipkart co-founder), Binny Bansal (Flipkart co-founder), Amit Ranjan, Girish Mathrubootham, Anand Rajaraman, Amit Singhal and Ashish Gupta, Elevation Capital, Accel Partners, Sequoia Capital, Prime Venture Partners and KB Investments.
The Bengaluru-headquartered company operates on a Software as a Service (SaaS) model and is among the leading market intelligence providers for private company data.
Here’s how to check the share allotment status on BSE:
* Open https://www.bseindia.com/investors/appli_check.aspx on your browser;
* Select ‘Equity’ option and issue name – ‘Tracxn Technologies Limited’ from the dropdown;
* Enter your application number and PAN (Permanent Account Number) details
* Check CAPTCHA and click submit to view the status.
IIFL Securities was the manager to the offer.
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The Bengaluru-based private market intelligence platform posted losses in financial year 2021-22 (FY22) and 2020-21 (FY21) but has reported profits in June quarter of 2022-23 (FY23).
Grey market premium
Last heard, the issue was commanding a discount of Rs 3-4 in the grey market.
Brokerage View
Brokerage Swastika Investmart has ‘avoid’ rating for the IPO as the company “faces significant competition from private players.”
“The company faces significant competition from private players such as Crunchbase, CBInsights, PrivCo & Pitchbook, and free online and offline sources of information on companies & businesses, including government records, company websites, and open online databases. We believe that the company will find it difficult to substantially grow its client base and top line in the coming years. Finally, the exorbitant valuation of Price to Sales of approximately 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,” the brokerage stated.
Choice Broking said it is cautiously optimistic on the company’s efforts in bringing down the employee costs. It said partial or full exit by PE investors has raised concerns on the long-term potential growth outlook.
“There is no peer company in the listed space having operations similar to the company. At higher price band, Tracxn is demanding an EV/Sales multiple of 12.3 times, which seems to be stretched for a loss-making operation,” Choice Broking said.
ICICIdirect said that the company’s profitability may improve going further. “The company reported a profit in Q1FY23 (minor). With operating leverage kicking in, profitability is likely to improve, going forward,” it said. However, the brokerage did not rate the IPO.
The issue, which had received several ‘avoid’ recommendations, had attracted 2.01 times bids. This was against Electronics Mart India’s 71.93 times and Harsha Engineers International’s 74.70 times bids, its two preceeding IPOs.
An alternate way could be to visit the registrar’s website, which in this case is Link Intime India.
Bidders can visit Link Intime (https://linkintime.co.in/MIPO/Ipoallotment.html), select the IPO and give either of the three: application number, demand account and PAN ID.
They would then be required to click on security check and hit submit.
