Trust Fintech IPO Closes With 101X Subscription

SUMMARY

Trust Fintech closed its initial public offering (IPO) on March 28, receiving bids for 45.39 Cr shares against 44.94 Lakh shares on offer

The IPO comprised a fresh issue of 62.82 Lakh equity shares in a price band of INR 95-101 per share, with a lot size of 1,200 equity shares

The company plans to utilise the IPO proceeds to establish a new development facility, procure hardware and upgrade IT infrastructure, enhance, maintain, and upgrade existing products, among others

Fintech SaaS company Trust Fintech closed its initial public offering (IPO) on March 28 with a subscription of 101X on the final day of the IPO on the back of huge demand from retail investors and non-institutional investors.

Trust Fintech’s IPO comprised a fresh issue of 62.82 Lakh equity shares. The company set the price band of INR 95-INR 101 per share for the IPO, with a lot size of 1,200 equity shares. It is looking to raise INR 63.45 Cr ($761K) from the IPO.

The issue received 45.39 Cr bids against 44.94 Lakh shares on offer, as per the information available on the NSE.

At 21.92 Cr, the IPO received the maximum number of bids from non-institutional investors. While corporates bid for 83.90 Lakh shares, non-retail individuals placed bids for 19.4 Cr shares. The number of bids from NIIs was 24.6 times of the 8.95 Lakh shares reserved for them .

The portion reserved for retail individual investors (RII) was subscribed 75X, receiving bids for 20.88 Lakh shares against 15.67 Cr shares on offer.

Meanwhile, qualified institutional buyers(QIBs) placed bids for 7.79 Cr shares, out of which 3.02 Cr bids came from foreign institutional investors.

At the end of day 1, the IPO received bids for 1.35 Cr shares. The number rose to 5.1 Cr shares after the second day.

Nagpur-based Trust Fintech offers SaaS products and fintech solutions for ERP implementation, and offshore IT services for the BFSI sector. It serves district central cooperative banks, urban cooperative banks, rural banks, commercial banks, credit cooperative societies, and NBFCs.

It was founded by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo in 1988.

The company plans to utilise the funds raised from the IPO to establish a new development facility at Mihan SEZ in Nagpur; procure hardware and upgrade IT infrastructure; enhance, maintain, and upgrade existing products; fund its global and domestic business development; and for sales, marketing and general corporate expenses.

Trust Fintech reported a profit after tax of INR 7.27 Cr in H1 FY24 compared to INR 4.02 Cr in the entirety of FY23. Its revenue stood at INR 18.82 Cr in H1 FY24 as against INR 22.54 Cr in FY23.