The Rs 309-crore Tracxn Technologies IPO got fully subscribed on Day 3 of the bidding process. The issue received bids for 2,12,88,875 shares against the issue size of 2,12,69,714 shares, with the quota reserved for retail individual investors (RIIs) getting 3.5 times subscription.
The quota for non-institutional investors attracted 62 per cent bids and that of qualified institutional buyers (QIBs) 36 per cent.
Also Read: Tracxn Technologies IPO: Should you subscribe to Flipkart founders-backed issue?
The offer for sale (OFS), which is being sold in Rs 75-80 price band, will conclude later in the day. Last heard, Tracxn Technologies was commanding a premium of Rs 8 per share in the grey market.
The firm has already raised Rs 139.22 crore, allocating 17,402,494 shares to anchor investors at Rs 80 a piece.
Among selling shareholders in the issue are founders Neha Singh and Abhishek Goyal. Flipkart founders Binny Bansal and Sachin Bansal and a few other investors are also among selling shareholders.
The Bengaluru-based private market intelligence platform posted losses in FY22 and FY21 but has reported profits in June quarter of FY23.
“Tracxn Technologies is one of the leading global providers of differentiated private market data and intelligence in a highly competitive industry. The company reported negative Ebitda in the previous three financial years. We give the IPO an ‘avoid’ rating,” Anand Rathi said in a note.
Swastika Investmart said the company will find it difficult to substantially grow its client base and top line in the coming years. “Exorbitant valuation makes it very difficult to recommend this issue,” it said while suggesting an ‘avoid’ on the issue.
Choice Broking said it is cautiously optimistic on the company’s efforts in bringing down the employee costs. It said partial or full exit by PE investors has raised concerns on the long-term potential growth outlook.
“There is no peer company in the listed space having operations similar to the company. At higher price band, Tracxn is demanding an EV/Sales multiple of 12.3 times, which seems to be stretched for a loss-making operation,” Choice Broking said.
The brokerage also looked concerned over high attrition rate in the IT-enabled sector and recommended ‘avoid’ rating on the issue.
