Bengaluru based Tracxn Technologies is coming up with an IPO now. This IPO would open for subscription on 10th October, 2022. Tracxn Technologies Limited provides market intelligence data to private companies. It has strong revenue growth in the last 3 years. However, it is incurring losses in the last 3 years. This company is backed by Flipkart founders. Should you invest in Tracxn Technologies IPO? This article would provide IPO details, Dates, GMP, Listing Date and conclusion on whether this is good or bad for investment.
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About Tracxn Technologies Limited
Company is among the leading global market intelligence providers for private company data. It ranks among the top 5 players globally in terms of number of companies profiled offering data of private market companies across sectors and geographies.
They have one of the largest coverage in private companies in emerging technology sectors including IoT, artificial intelligence, virtual reality, robotics, blockchain and electric vehicles.
Company has asset light business model and operate a Software as a Service (Saas) based platform, Trancxn, that scanned over 662 million web domains and profiled over 1.84 million entities across, 2,003 feeds categorized across industries, sectors, subsectors and geographies.
Company platform has 3,271 users across 1,131 customer accounts in over 58 countries as of the end of June, 2022.
Its customers include a number of Fortune 500 companies and their affiliates.
Tracxn Technologies IPO Details
| IPO Opening Date | 10-Oct-22 |
| IPO Closing Date | 12-Oct-22 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 1 per equity share |
| IPO Price band | Rs 75 to Rs 80 per equity share |
| Lot Size | 185 Shares |
| Min Order Quantity | 185 Shares |
| Listing at | BSE and NSE |
| Total Issue Size (Entirely OFS) | Rs. 309.38 Crores |
What are the strengths of Tracxn Technologies Limited?
1) Company is one of the leading global providers of differentiated private market data and intelligence
2) Company with diverse, longstanding and growing global customer base
3) It has scalable and secure technology platform conceptualized and developed in-house
4) It has significant cost advantages from India-based operations
5) Company has experienced Promoters, Board of Directors and senior management team backed by marquee investors.
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What are the Objects of the IPO Offer?
Tracxn IPO Size is Rs 309.38 Crores and it is entirely offer for sale.
Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds.
Through the OFS, promoters Neha Singh and Abhishek Goyal will sell about 76.62 lakh equity shares each, Flipkart founders Binny Bansal and Sachin Bansal to offload 12.63 lakh shares, Elevation Capital will sell up to 1.09 crore equity shares, Accel India IV Mauritius to sell 40.2 lakh shares, SCI Investment V up to 21.81 lakh shares, and Sahil Barua to offload 2.07 lakh shares, among others.
Beyond this, the company would get listed benefits.
Who are the promoters of Tracxn Technologies Limited?
Neha Singh and Abhishek Goyal are the promoters of the company.
How is the company financial track record?
Here are the total assets, revenues and profits of the company in the last 3 years and 3 months.
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY20 | FY21 | FY22 | 30-Jun-22 |
|---|---|---|---|---|
| Total Assets | 52.4 | 48.5 | 54.0 | 56.8 |
| Revenues | 6.3 | 55.7 | 65.2 | 19.1 |
| Profit After Tax | -54.8 | -4.2 | -4.9 | 0.9 |
| Profit % | NA | -7.45% | -7.45% | 4.84% |
Why to invest in Tracxn Technologies IPO?
Here are the positive factors in this company.
1) Company is one of the leading market intelligence data providers to private companies globally.
2) Company is backed by several key people, including Flipkart founders.
3) Company has strong revenue growth in the last 3 years. Its revenues increased from Rs 6.3 Crores in FY20 to Rs 65.2 Crores in FY22.
Risk Factors of investing in Tracxn Technologies IPO
1) Company IPO proceeds are only for offer for sale for Rs 309.38 crores. Under OFS, the money goes to selling shareholders and company would not get any money.
2) Company has been incurring losses in the last 3 years. However, it turned into profits for Qtr ending Jun-22. One need to wait and watch to check if such profits would sustain and increase in coming quarters or not. Investors would not get anything by investing in loss making companies. Check what happened to Paytm and few other loss making companies that came to public.
3) Company needs to continue to attract existing customers as well as new customers, failure would affect revenue and profitability growth.
4) Company derives revenues from subscriptions to its Tracxn platform. If customers do not renew and new customers do not sign-up, it can affect company future growth
5) There is intense competition and company might lose market share to its competitors
6) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.
Frequently Asked Questions (FAQs)
What is Tracxn Technologies IPO date?
This IPO would open on 10th October, 2022 and closes on 12th October, 2022.
What is Tracxn Technologies Share Price?
The IPO share price band is Rs 75 to Rs 80 per share.
What is Tracxn Technologies IPO Rating?
Company do not require to get an IPO rating as this issue is for equity shares. Currently, Tracxn Technologies short term rating and long term rating is not available.
How much portion allocated to each group of investors in this IPO?
1) QIB – Not less than 75% of the offered shares 2) NII / HNI – Not less than 15% of the offered shares 3) Retail – Not less than 10% of the offered shares
What is the minimum amount to subscribe to this IPO?
Investors need to apply for 185 shares. The minimum amount to be invested in the lower price band of Rs 75 is Rs 13,875. Similarly, the minimum amount to be invested in the upper price band of Rs 80 is Rs 14,800.
What is Tracxn Technologies IPO GMP today?
GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market. Tracxn Technologies IPO GMP Chanakya – Nil Tracxn Technologies IPO GMP IPOWatch – Nil Tracxn Technologies GMP as per IPOBazar – Nil
IPO of Tracxn Valuation
Tracxn Technologies IPO price band is Rs 75 to 80 per share. Company has been incurring losses, hence we cannot compute the P/E ratio. Even for Qtr ending Jun-22, the company generated thin margins, hence P/E ratio is very high and not comparable.
Tracxn IPO Dates for subscription, Allotment and Listing
| Offer Open | 10-Oct-22 |
| Offer close | 12-Oct-22 |
| Finalization of Allotment | 17-Oct-22 |
| Initiation of Refunds | 18-Oct-22 |
| Credit to Demat Account | 19-Oct-22 |
| IPO Shares Listing Date | 20-Oct-22 |
How to buy Tracxn Technologies IPO online through Zerodha?
If you do not have Zerodha account, sign-up here and proceed to the next step.
If you have a demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.
Follow below steps to apply this IPO in Zerodha platform:
1) Visit the Zerodha portal and login to the console.
2) Go to Portfolio and click the IPOs link.
3) Visit ‘Tracxn Technologies Limited IPO’ row and click the ‘Bid’ button.
4) Enter your UPI ID, Qty and the Price which you want to bid.
5) Click on ‘Submit’ IPO application form.
6) Visit the UPI App (net banking or BHIM) to approve the mandate.
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Tracxn Technologies IPO Review – Should you invest or avoid?
After going through all these points, you might be wondering whether Tracxn Technologies IPO is good or bad for investment?
Tracxn Technologies Limited is leading market intelligence data provider to private companies globally. Company has strong revenue growth in the last 3 years and 3 months.
On the other side, the company has been incurring losses in the last 3 years, entire IPO is to offer for sale (investors want to exit), low promoter holding, price band looks low, but the face value of share is Rs 1.
Personally, I would like to avoid such IPOs for investment as of now.
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Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com
