Tracxn IPO Subscribed Over 2X On Final Day; QIB Portion Booked 166%

The initial public offering (IPO) of Bengaluru-based market intelligence startup Tracxn Technologies was subscribed 2X on the final day, receiving bids for 4.27 Cr shares as against 2.13 Cr shares on offer.

The IPO saw a lot of interest from retail investors, with the portion reserved for them seeing nearly 5X subscription. On days two and one, the retail portion was subscribed 2.6 times and 1.23 times, respectively. 

Retail individual investors (RIIs) placed bids for over 1.88 Cr shares as against 38.67 Lakh shares on offer, as per data available on the BSE. 

While the qualified institutional buyers (QIB) portion remained untouched for the first two days, it was subscribed nearly 166% by the closing of the subscription.

However, the non-institutional investors (NIIs) category was undersubscribed, seeing bids for only 80% of shares on offer. NIIs placed bids for 46.09 Lakh shares as against 58 Lakh shares on offer.

The startup had set a price band of INR 75-INR 80 for the INR 309 Cr IPO, which consists only of an offer for sale component. Tracx raised INR 139.22 Cr ($16.8 Mn) in an anchor round ahead of the IPO with participation from both foreign portfolio investors and domestic funds. 

Founded in 2013 by venture capitalists Abhishek Goyal and Neha Singh, Tracxn is the second startup to go for IPO in 2022 so far.

The public offer received mixed response from analysts, with a majority of them remaining neutral, while some raised concerns on profitability, valuation and scalability issues.

Tracxn reported a 45% increase in revenue to INR 63.45 Cr in FY22, while its loss narrowed 9% to INR 4.85 Cr.

The IPO comes at a time when many startups have deferred or abandoned their public listing plans amidst the global economic slowdown. Startups like MobiKwik, BoAt, Pharmeasy, Pepperfry, FirstCry, and Oyo are among those who are on a wait-and-watch mode for their public offerings.

While the year 2021 saw over 10 startups going public amidst an unprecedented funding boom, the funding winter has changed the sentiment in 2022. Delhivery is the only startup to list on the stock exchanges this year. 

Some analysts are optimistic that Tracxn will follow Delhivery and its shares will list at a premium on the bourses. Shares of Tracxn were trading at a premium of INR 5- INR 7 in the grey market on the final day of the IPO.