TAC Security IPO: Public Issue Oversubscribed 9.31X On Day 1

SUMMARY

As per NSE data, the issue received bids for 1.88 Cr shares as against 20.23 Lakh shares on offer

While the retail investor quota was oversubscribed 15.9X, QIBs portion was oversubscribed 2.6X on the maiden day of the public issue

TAC Infosec has set the price band for the IPO in the range of INR 100-106 per share and is looking to raise about INR 29.9 Cr through the issue

SaaS cybersecurity startup TAC Infosec’s initial public offering (IPO) was oversubscribed 9.31X on the first day on Wednesday (March 27), led by heavy demand from retail investors.

As per NSE data, the issue received bids for 1.88 Cr shares as against 20.23 Lakh shares on offer.

The retail individual investors (RIIs) quota was oversubscribed 15.9X as the portion received bids for 1.5 Cr shares as against 9.4 Lakh shares on offer. On similar lines, the quota for non-institutional investors (NIIs) saw bids for 24.13 Lakh shares versus 4.03 Lakh shares on offer.

Meanwhile, qualified institutional buyers (QIBs) took least interest on the maiden day of the public issue as the portion was oversubscribed 2.6X. Of the 5.37 Lakh shares on offer, QIBs bid for 14.2 Lakh shares.

The IPO will now close on April 2 and will list on NSE’s small and medium enterprises (SMEs) focussed-platform NSE Emerge. The public issue comprises a fresh issuance of 28,29,600 equity shares, of which 1.41 Lakh shares have been reserved for the market maker.

TAC Infosec has set the price band for the IPO in the range of INR 100-106 per share and is looking to raise about INR 29.9 Cr at the higher spectrum of the price band. The lot size has been fixed at 1,200 equity shares.

This comes just a day after the cybersecurity startup said that it raised INR 8.55 Cr from anchor investors ahead of its IPO.

It is pertinent to note that TAC Infosec filed its draft red herring prospectus (DRHP) in January this year.

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

The company will utilise the fresh proceeds from the IPO to fuel product development, hire more and invest in its US-based entity TAC Security INC to expand its global footprint. A portion of the funds will also be deployed to meet other corporate needs.

Beeline Capital Advisors Private Limited is the book running lead manager for the issue.

TAC Infosec clocked a profit (PAT) of INR 1.94 Cr in the first half (H1) of the financial year 2023-24 (FY24) as against a net profit of INR 5.07 Cr in the entire FY23. Meanwhile, total revenues stood at INR 5.31 Cr in the first six months of FY24 compared to INR 10.14 Cr in the year ended March 2023.