Trust Fintech IPO: Public Issue Oversubscribed 3.02X On Day 1

SUMMARY

The issue received bids for 1.35 Cr shares as against 44.94 Lakh shares on offer, as per the NSE

Retail portion was oversubscribed 5.33X, as the company received bids for 1.11 Cr shares against 20.88 Lakh equity shares on offer

The fintech SaaS company will list on NSE Emerge and is looking to raise about INR 63.45 Cr from the public offering, which will close on March 28

Fintech SaaS company Trust Fintech’s initial public offering (IPO) was oversubscribed 3.02X on Day 1 on Tuesday (March 26) on the back of huge demand from retail investors.

The issue received bids for 1.35 Cr shares as against 44.94 Lakh shares on offer, as per the information available on the NSE.

Retail investors led the way as the portion reserved for them was oversubscribed 5.33X. The company received bids for 1.11 Cr shares from retail individual investors (RIIs) as against 20.88 Lakh equity shares reserved for them.

Meanwhile, the quota for non-institutional investors (NIIs) saw a subscription of 2.72X. NIIs bid for 24.4 Lakh shares as against 8.95 Lakh shares on offer for them. There were no takers for the 11.9 Lakh shares reserved under the qualified institutional buyers (QIBs) on the first day of the IPO.

The IPO will close on March 28. Last week, the company raised INR 18.05 Cr from eight anchor investors at a price of INR 101 per equity share.

The fintech SaaS company has set a price band of INR 95-INR 101 per share with a lot size of 1,200 equity shares. At the upper end of the price band, it is looking to raise about INR 63.45 Cr from the public offering and will list on NSE Emerge.

The IPO comprises a fresh issue of 62.82 Lakh equity shares. The company filed its DRHP with NSE Emerge in early February,

The proceeds from the IPO will be utilised to set up a new development facility, upgrade IT infrastructure, enhance existing products, and to expand 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, offshore IT services for the BFSI sector.

Trust Fintech clocked a profit after tax (PAT) of INR 7.27 Cr in the first half (H1) of the financial year 2023-24 (FY24) compared to INR 4.02 Cr in the entirety of FY23. The company also saw its revenue jump to INR 18.82 Cr in H1 FY24 as against INR 22.54 Cr in FY23.