Fintech SaaS Platform Trust Fintech’s IPO To Open On March 26

Fintech SaaS company Trust Fintech Limited’s initial public offering (IPO) will open on Tuesday (March 26) and will conclude on Thursday (March 28) as the company plans to raise about INR 63.45 Cr from the public offering.

In early February, Trust Fintech filed its DRHP with NSE Emerge. Its IPO comprises fresh issuance of 62,82,000 equity shares. The company has reserved 3.18 Lakh equity shares for the market maker, 8.95 Lakh shares for HNIs, 11.92 Lakh equity shares for QIBs, and 20.88 Lakh shares for retail investors. 

The anchor portion for the IPO will open on Friday (March 22).

The company has set a price band of INR 95-INR 101 per share. The lot size for the IPO will be 1,200 equity shares.

Founded in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Nagpur-based Trust Fintech provides core banking SaaS products and fintech software solutions around ERP implementation and customised software solutions development, and SAP B1 and offshore IT services for the BFSI sector. The company primarily implements and deploys its flagship core banking software products – TrustBankCBS and MicroFinS. 

It plans to utilise the net proceeds from the offering to establish a new development facility at Mihan SEZ in Nagpur, to procure hardware and upgrade IT infrastructure, enhance its existing products, and fund its global and domestic business development, among others.

Trust Fintech currently serves district central cooperative banks, urban cooperative banks, rural banks, commercial banks, credit cooperative societies, and NBFCs in India. 

It also plans to expand its capabilities in foreign countries, including Canada, North America, and South America. 

Corporate Capital Ventures is the lead book runner for the IPO.

Trust Fintech posted INR 18.82 Cr in revenue and INR 7.27 Cr in profit after tax (PAT) in the first half of FY24. In FY23, the company’s revenue stood at INR 22.54 Cr while its PAT was at INR 4.02 Cr.

In the last two years, SME IPOs have witnessed a significant surge. Several new-age tech startups have also chosen SME listing over mainboard listings.

In 2023, blockchain and IT development startup Yudiz Solutions listed on the NSE SME platform at over a 12% premium to the issue price. In the year before, drone startup DroneAcharya Aerial Innovations listed at almost a 90% premium on the BSE SME platform.

Ace investor Vijay Kedia-backed TAC Infosec Limited, also known as TAC Security, has also opted for a listing on the NSE Emerge platform. Its INR 29.9 Cr IPO will open on Wednesday (March 27).