The festive lights have lifted the mood on Dalal Street, but apparently failed to light up Tracxn Technologies’ fate on Wednesday, just a day ahead of its listing on the bourses, if one goes by the grey market premium.
According to market watchers, the company is witnessing negligible trades in the unofficial market as it is trading at a discount of up to Rs 3 apiece. Even analysts are not very positive for any sort of listing pop at the debut.
Shares of Tracxn Technologies were available at a discount of Rs 3 apiece, compared to issue price of Rs 80 per share. However, there was a drought in the numbers of trades for the counter.
The Rs 309.38-crore initial public offering (IPO) of Tracxn Technologies was open for subscription between October 10 and 12 as the company sold its 38,672,208 equity shares via offer for sale (OFS) route in the range of Rs 75-80 per share.
The issue was overall subscribed just above twice during the bidding process. The quota for retail bidders was subscribed 4.87 times, whereas institutional buyers’ allocation was subscribed 1.66 times. The HNI portion fetched only 80 per cent bids.
Among the fundamentals, Tracxn Technologies has an inconsistent bottomline and issue was highly priced, leaving nothing on the table for investors, said Abhay Doshi, Co-founder, UnlistedArena.
“Poor subscription from the investors and entirely offer for sale by the promoters have turned investors skeptical, leading to no premium or trade in the grey market,” the avid grey market tracker added.
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.
The company’s extensive global database and customised solutions and features allow its customers to source and track companies across sectors and geographies to address their requirements.
Aayush Agrawal, Senior Research Analyst,
said that Tracxn Technologies is expected to have a muted to negative listing owing to high valuations, less than stellar subscription numbers and the issue being entirely an OFS.
“We had assigned an ‘avoid’ rating for this issue in the IPO note,” he added. “Investors must wait for a few quarters before deciding whether to invest or not for the long term.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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