The issue, which kicked off for subscription earlier today, will close on Wednesday, October 12. The company is selling its shares in the range of Rs 75-80 apiece to raise about Rs 310 crore.
According to the data from BSE, investors made bids for 13,54,015 equity shares or just 6 per cent compared to 2,12,69,714 equity shares on offer by 12 noon on Monday, October 10.
The quota for retail bidders was subscribed 34 per cent, whereas the allocation for HNI investors fetched only 1 per cent bid. The quota for qualified institutional investors was not off the mark yet.
The company will not receive any proceeds from the issue and the entire sum will go to the selling shareholders. The company said 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.
Brokerage firms largely remain negative on the issue, suggesting to avoid it, citing concerns like the loss-making nature of the business, stiff competition, rich valuations and pure OFS by the company.
Tracxn Technologies is one of the leading global providers of differentiated private market data and intelligence in a highly competitive industry but it reported negative EBITDA in the previous three financial years, said
said, assigning avoid rating to the issue.
Another brokerage firm
said the company will find it difficult to substantially grow its client base and top line in the coming years. “The exorbitant valuation of price to sales of about 12.5x makes it very difficult to recommend,” it said with an avoid call for the issue.
For the fiscal year 2021, the company clocked a total revenue of Rs 55.74 crore as against 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.
However,
said the company is a leading global player, ranking amongst the top 5 in its segment. “It has achieved breakeven and reported gains in Q1FY23. The stock is currently valued at P/S of 12.7x to its FY22 sales of Rs 63.43 crore; the issue is fairly priced and we recommend that investors subscribe for the long term,” it added.
Tracxn Technologies said it raised Rs 139.22 crore from anchor investors, including various funds and financial institutions.
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 be listed at both BSE and NSE.
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