Tracxn IPO Subscribed 54% On Day 2, Retail Subscription Rises To 2.6 Times

The initial public offering (IPO) of Bengaluru-based market intelligence startup Tracxn Technologies was subscribed a little over 54% at the end of the second day, receiving bids for a total of 1.15 Cr shares.

Maintaining the first day trend of receiving the highest subscription from retail investors, the retail portion was subscribed 2.6 times on day 2 from 1.23 times on day 1. Retail individual investors’ (RIIs) placed bids for over 1 Cr shares, as per data available on the BSE. The total available shares in the category are 38.67 Lakh.

On the other hand, the qualified institutional buyers’ (QIBs) portion remained untouched for the second day as well. 

Tracxn’s IPO opened for subscription on October 10 and the window would close on October 12. The startup has set a price band of INR 75-INR 80 apiece for the IPO. 

On day 2 of the offer, non-institutional investors (NIIs) placed bids for 14.74 Lakh shares out of the 58 Lakh shares on offer. While NIIs who placed bids worth over INR 10 Lakh bid for 7.01 Lakh shares, smaller NIIs with a bid amount between INR 2 Lakh to INR 10 Lakh placed bids for 7.73 Lakh shares.

Together, the NII portion was subscribed 0.25 times at the end of the second day of the offer versus 0.04 times on day 1.

Founded in 2013 by Abhishek Goyal and Neha Singh, Tracxn’s IPO is valued at INR 309.36 Cr at the upper end of the price band. It comprises only an offer for sale (OFS) of 3.86 Cr shares and there will be no fresh issue of shares. 

Tracxn raised INR 139.22 Cr ($16.8 Mn) in an anchor round ahead of its IPO with participation from both foreign portfolio investors and domestic funds. 

The likes of BNP Paribas Arbitrage- ODI, Ashoka India Equity Investment PLC, India Acorn, Tara Emerging Asia Liquid Fund, Kotak Offshore (India Midcap Fund), Nippon Life, ICICI Prudential, Kotak Pioneer Fund, Reliance General Insurance, and Motilal Oswal participated in the anchor round. 

Tracxn saw a 45% jump in its FY22 revenue to INR 63.45 Cr from INR 43.78 Cr in FY21. Its losses also narrowed by 9% to INR 4.85 Cr in FY22.

The startup’s IPO comes at a time when many startups have deferred or abandoned their public listing plans owing to the global economic slowdown. While the year 2021 saw a large number of Indian startups, including Zomato, Nykaa and Paytm, going public amidst the funding boom, 2022 has been a lacklustre year with Delhivery being the only major startup to list on exchanges this year.

Shares of Tracxn were commanding a premium of INR 5-INR 7 in the grey market on the second day of the IPO.

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