SUMMARY
The public issue received bids for 5.1 Cr shares as against 44.94 Lakh shares on offer
The portion reserved for retail individual investors was oversubscribed 17.7X, while non-institutional investors bid for 1.3 Cr shares as against 8.95 Lakh shares on offer
Trust Fintech is looking to raise about INR 63.45 Cr from the public issue, which will close on March 28
Fintech SaaS company Trust Fintech’s initial public offering (IPO) was oversubscribed 11.4X on the second day on Wednesday (March 27), led by demand from retail and non-institutional investors.
The issue received bids for 5.1 Cr shares as against 44.94 Lakh shares on offer, as per the information available on the NSE.
The portion reserved for retail individual investors (RIIs) was oversubscribed 17.7X, with the quota receiving bids for 3.7 Cr shares against 20.88 Lakh shares on offer.
Meanwhile, non-institutional investors (NIIs) bid for 1.3 Cr shares as against 8.95 Lakh shares on offer for them.
The lowest demand was seen from qualified institutional buyers (QIBs), who placed bids for 3.84 Lakh shares out of the reserved quota of 11.92 Lakh.
It is pertinent to mention that Trust Fintech’s IPO was oversubscribed 3.02X on the first day.
The IPO, which opened on Tuesday, will close on Thursday (March 28). Last week, the company raised INR 18.05 Cr from eight anchor investors at INR 101 per equity share.
The company has set the price band for the IPO at INR 95-INR 101 per share, with a lot size of 1,200 equity shares. It is looking to raise about INR 63.45 Cr from the public offering at the upper end of the price band.
The IPO comprises a fresh issue of 62.82 Lakh equity shares. It filed its DRHP with NSE Emerge in early February.
The proceeds from the IPO will be used to build a new development facility, upgrade IT infrastructure, enhance existing products, and expand its global footprint.
Founded in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, the Nagpur-based company offers SaaS products and fintech solutions for ERP implementation, and offshore IT services for the BFSI sector.
It currently serves district central cooperative banks, urban cooperative banks, rural banks, commercial banks, credit cooperative societies, and NBFCs.
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. Revenue stood at INR 18.82 Cr in H1 FY24 as against INR 22.54 Cr in FY23.
