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Price, Financials, GMP, Should you Invest?


Tracxn Technologies IPO Day 1: The initial public offering (IPO) of Flipkart founders-backed Tracxn Technologies Limited will be launching its Initial Public Offer today. The last day to subscribe to the public offer is October 12 (Wednesday).

Tracxn Technologies IPO: Price Band

The price band for the offer has been fixed at Rs 75 – 80 per equity share of face value Rs 1 each. Of the total offer size, 75 per cent of the net offer will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent is for retail investors. Investors can bid for a minimum lot size of 185 shares and in multiples thereof. The minimum investment for a retail investor works out to Rs 14,800 at the upper end of the price band for 185 shares. A retail investor can apply for up to 13 lots or 2,405 shares for an amount of Rs 1,92,400.

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: Financials

As of June 30, 2022, the platform had 3,271 users across 1,139 customer accounts in over 58 countries and its customers include several Fortune 500 companies and/or their affiliates, the company said in its DRHP.

For the fiscal year 2021, the company clocked a total revenue of Rs 55.74 crore, which was Rs 63.13 crore a year ago. The company reported a net loss of Rs 5.35 crore, which was significantly lower than the net loss of Rs 54.03 crore last year.

IIFL Securities is the sole book-running lead manager to the issue, whereas Link Intime India has been appointed as the registrar for the issue. Shares of the company will list on both BSE and NSE.

Tracxn Technologies IPO GMP

According to market observers, Tracxn Technologies IPO grey market premium (GMP) today is Rs 6.

Tracxn Technologies IPO: Should you Subscribe?

Brokerage firms are mixed over the issue. A few have suggested avoiding the issue citing poor financials, pricey valuations and the fact the IPO is an OFS. However, a few analysts have suggested bidding for the issue citing growth prospects for it.

Hem Securities said that the company is bringing the issue at a P/S multiple of 14x on an FY22 basis. The company is a leading global provider of differentiated private market data and intelligence and has a diverse, longstanding and growing global customer base.

The company with its scalable and secure technology platform conceptualized and developed in-house has significant cost advantages from India-based operations along with experienced promoters, board of directors and senior management team, backed by marque investors, it added with a subscribe rating on the issue, it added.

However, Choice Broking said that Tracxn’s valuations seem to be stretched for a loss-making operation. Considering the high attrition rate in the IT-enabled sector and the already double-digit attrition level of Tracxn, the brokerage is cautiously optimistic about the company’s efforts in bringing down employee costs.

“Also full exit by PE investors raises the concerns on the long-term potential growth outlook,” the brokerage said while suggesting to avoid the issue.

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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