TAC Infosec IPO Oversubscribed 392X On Strong Demand

Warburg Pincus-Backed Avanse Financial Services Files DRHP For INR 3,500 Cr IPO

SUMMARY

The public issue received bids for 79.42 Cr shares as against 20.23 Lakh shares on offer, with the company saying that the IPO received bids worth $1 Bn

Non-institutional investor (NII) led the pack as the portion was subscribed 769X, with investors placing bids for 31 Cr shares as against 4.03 Lakh shares on offer

The startup planned to raise INR 29.99 Cr from the IPO, which closed on April 2

SaaS cybersecurity startup TAC Infosec’s initial public offering (IPO) received a warm response from investors and closed with 392.5X subscription on Tuesday (April 2).

As per the NSE data, the public issue received bids for 79.42 Cr shares as against 20.23 Lakh shares on offer. The startup, in a statement, said that the IPO received bids worth $1 Bn.

Non-institutional investors (NII) led the pack as the portion reserved for them was subscribed 769X, receiving bids for 31 Cr shares as against 4.03 Lakh shares on offer. Meanwhile, retail individual investors (RIIs) placed bids for 40.81 Cr shares as against 9.4 Lakh shares on offer, translating into 434X subscription.

The qualified institutional buyers’ (QIB) portion also saw healthy activity on the final day as it was subscribed 142X. Investors placed bids for 7.59 Cr shares as against 5.37 Lakh shares on offer.

Beeline Capital Advisors was the sole book runner for the IPO. It is pertinent to note that the public issue was subscribed 9.31X on the first day, 22.82X on the second day and 64.2X on the third day of the IPO.

The startup will list on the NSE’s small and medium enterprises (SME) platform NSE Emerge. TAC Infosec’s IPO comprised a fresh issue of 28.29 Lakh equity shares, with the startup looking to raise INR 29.99 Cr at the upper end of the price band of INR 100-106 per share.

It raised INR 8.55 Cr from anchor investors ahead of the public issue on March 27.

Founded in 2016 by Trishneet Arora, TAC Infosec offers risk-based vulnerability management and assessment solutions, and other SaaS cybersecurity solutions to enterprises and small businesses.

It will deploy the proceeds from the IPO towards ramping up hiring, fuelling product development, supporting organic growth in the country, expanding global footprint and for general corporate purposes.

The startup reported a net profit of INR 1.94 Cr in the first six months (H1) of the financial year 2023-24 (FY24) as against INR 5.07 Cr in the entirety of FY23. Total revenue stood at INR 5.31 Cr in H1 FY24 as against INR 10.14 Cr in the year ended March 2023.