The SME IPO of Trafiksol ITS Technologies opens for subscription earlier today and will close on September 12. The company aims to raise about Rs 45 crore through the SME IPO and list the shares on BSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.
1) Trafiksol ITS Technologies IPO size
The IPO is entirely a fresh equity issue of 64.1 lakh shares and through the issue, the company plans to raise Rs 45 crore.
2) Trafiksol ITS Technologies IPO price band
The company is offering its shares at Rs 66-70 apiece, and investors can bid for 2000 shares in 1 lot.
3) Trafiksol ITS Technologies GMP
In the unlisted market, the company’s shares are trading with a GMP of Rs 80, which translates to a premium of 114% over the issue price.
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4) About Trafiksol ITS Technologies
The company was incorporated in 2018 with the object of providing comprehensive solutions for intelligent transportation systems and automation, including software development, consultancy, and supply services.
5) Industry overview
India’s road network has grown 59% to become the second largest in the world in the last ten years. India has nearly 66.71 lakh km of total road network and the National Highways network alone stood at 146,145 km in CY23. India had a total of 97,830 km of National Highways in 2014-15 which has expanded to 146,145 km by December 2023.
6) Trafiksol ITS Technologies financial performance
For the year ended March 2024, the company clocked total revenues of Rs 65 crore and net profit of Rs 12.01 crore.
7) Objects of the offer
The net proceeds from the public offer will be used for purchase of software, repayment of debt, working capital requirements and other general corporate purposes.
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8) Lead managers and registrar
Ekadrshit Capital is acting as the lead manager to the issue and Maashtila Securities is the registrar.
9) Issue structure
About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
10) Important dates
The IPO opened on September 10 and will close on September 12. The final allotment will likely be made on September 13. The company’s shares will likely get listed on September 17.
