Tracxn Technologies Listing Price: Tracxn Technologies shares made a debut on the stock exchanges on Thursday, listing at a premium to the IPO price. As the scrip got listed at Rs 84.50 on NSE, a 5.63 per cent premium over its issue price of Rs 80. On BSE, the stock got listed at Rs 83, up 3.75 per cent.
The issue had received 2.01 times subscription, largely due to retail participation, as the quota reserved for non-institutional investors went undersubscribed at 80 per cent. Tracxn Technologies IPO attracted 4.87 times retail bids. The quota reserved for qualified institutional buyers was subscribed 1.66 times.
The IPO of up to 3,86,72,208 equity shares is in a price range of Rs 75-80 a share. At the upper end of the price band, the IPO is expected to garner Rs 309 crore.
The public issue, an offer for sale (OFS) of 38.67 million shares by its promoters Singh and Goyal and shareholders that include Flipkart founders Sachin Bansal and Binny Bansal and VC firms like Sequoia Capital and Accel. The company raised a little more than Rs 139 crore from anchor investors.
A global provider of differentiated private market data and intelligence, Tracxn Technologies deals in a highly competitive industry. The Bengaluru-based firm posted losses in FY22 and FY21 but clocked profits in June quarter of FY23.
The Bengaluru-headquartered company, launched in 2015 by Neha Singh and Abhishek Goyal, operates on a Software as a Service (SaaS) model and is among the leading market intelligence providers for private company data. They had their stints as venture capitalists at Sequoia and Accel Partners, respectively. The firm offers customers private company data for deal sourcing, identifying M&A targets, deal diligence, analysis, and tracking emerging themes across industries and markets, through its subscription-based platform.
What Should Investors Do Now?
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd., said: “Tracxn Technologies Limited has debuted at Rs.84.50 i.e. ~6% over its issue price. The company’s muted listing can be attributed to unexciting investor subscription levels, high valuation, and the OFS nature of the issue."
“The company is a leading global market intelligence provider for private company data and ranks among the top five players globally in terms of the number of companies profiled offering data of private market companies across sectors and geographies. Nevertheless, due to the rising interest rates globally & recessionary conditions in major markets like North America & Europe the Private Equity Markets, Venture Capital markets, Investment Banks, and Family offices are witnessing a significant cutback in terms of activities and traction; additionally, M&A activities have been subdued. Thus we believe that the company will find it difficult to substantially grow its client base and top line in the coming years. Additionally, the company faces significant players from private players such as Crunchbase, CBInsights, PrivCo & Pitchbook, and free online and offline sources of information on companies & businesses. Post-listing, investors must wait for a few quarters before deciding whether to invest or not for the long term. Those who applied for listing gains can maintain a stop loss of Rs.79," he said.