Tracxn Tech makes lacklustre debut, lists at 6% premium over IPO price

The shares of Tracxn Technologies made a lacklustre debut on the bourses on Thursday as the stock listed at Rs 84.5, a premium of 5.63% over its issue price of Rs 80 on the National Stock Exchange (NSE).

On BSE, the counter listed at Rs 83, a premium of 3.75%.

The grey market had yesterday hinted at a tepid listing as shares were available at a discount of Rs 3 apiece.

The Rs 309.38-crore initial public offering (IPO) of Tracxn Technologies was open for subscription between October 10-12 wherein the company sold its 38,672,208 equity shares via offer for sale (OFS) route in the range of Rs 75-80 per share.

The issue was overall subscribed just above two times during the bidding process. The quota for retail bidders was subscribed 4.87 times, whereas institutional buyers' allocation was subscribed 1.66 times. The HNI portion fetched only 80% bids.

The company will not receive any proceeds from the issue and the entire sum will go to the selling shareholders. The company said that it intends to gain the benefits of listing the shares on the stock exchanges.

Founded in 2013, Tracxn Technologies provides market intelligence data for private companies. The company has an asset-light business model and operates a Software as a Service (SaaS) based platform named Tracxn.

The company's extensive global database and customized solutions and features allow its customers to source and track companies across sectors and geographies to address their requirements.

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 a net loss of Rs 54.03 crore last year.

Analysts were concerned about the IPO’s high valuations, less than stellar subscription numbers and the issue being entirely an OFS.

"Investors must wait for a few quarters before deciding whether to invest or not for the long term," said Aayush Agrawal, Senior Research Analyst, Swastika Investmart.

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