Tracxn Technologies IPO shares witnessed positive listing on the both BSE and NSE as the stock listed at a premium amid a weak market. Tracxn share price was up 5% on debut despite muted IPO response. The stock opened at Rs 83 on the BSE, against the issue price of Rs 80, and at Rs 84.50 on NSE. The company’s market capitalization on BSE stood at Rs 832.57 crore at the time of listing. Tracxn Technologies IPO had received bids for 4.27 crore shares against 2.12 crore shares on offer. The category for retail individual investors (RIIs) was subscribed 4.87 times and the portion for Qualified Institutional Buyers (QIBs) received 1.66 times subscription.
“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,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
“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 added.
The Rs 309 crore received through the IPO will go to selling shareholders (promoters and investors) as the issue was entirely an offer for sale (OFS). Flipkart founders Sachin Bansal and Binny Bansal exited the company, while the shareholding of promoters Abhishek Goyal and Neha Singh dropped below 35 percent after the IPO.
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.
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