Tracxn Technologies IPO — 10 things to know about this company as its IPO opens

Oct 10, 2022

By: Bhakti Makwana

IPO dates

The IPO of Bengaluru-based data provider Tracxn Technologies has opened today (October 10) and will close on October 12. The price band of the IPO is ₹75-₹80 per share.

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How much money will the company raise via IPO?

The ₹309 crore IPO will be entirely an offer for sale (OFS) of 3.86 crore equity shares by promoters and investors so the company will not be raising any money.

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Promoters selling shares via IPO

Among others, Flipkart founders Binny Bansal and Sachin Bansal will be offloading up to 12.63 lakh shares each. Delhivery founder Sahil Barua, Freshworks’ Girish Mathrubootham and Sequoia Capital India will also be selling some equity shares as a part of the IPO.

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What does the company do?

Tracxn Technologies is a software as a service (SaaS) platform that provides a platform for customers to source and track companies across sectors and geographies.

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Analysts cautious of the IPO

While the company has reported good business growth in the last three fiscal years, the operations are still loss making.

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‘Avoid’ rating by analysts

A partial/full exit by private equity investors raises concerns on the long term outlook, say analysts at Choice Broking which assigned an ‘avoid’ rating for the issue.

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Tracxn Technologies reported losses in last 3 fiscal years

“Although the revenues have increased, EBITDA and PAT have been in negative for the past two years. So, an investor needs to keep a watch on the financials for FY23,” says a report by Religare Broking which gave a ‘neutral’ rating to the issue.

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Grey market premium

The shares of Tracxn Technologies are commanding a premium of ₹6 per share in the grey market. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

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Allotment date

The company’s shares are scheduled to be allotted on October 17. The company’s shares are scheduled to be allotted on October 17.

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Listing date

Tracxn Technologies will be listed on BSE and NSE on October 20.

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