Tracxn Technologies IPO opens today: 10 key things to know before you buy it

2.    Price Band

The price band for the offer has been fixed at Rs 75 - 80 per equity share of face value Rs 1 each.

Tracxn Tech sets IPO price band at Rs 75-80 a share

3.         Offer Details

The company intends to garner ~Rs 310 crore through an offer for sale of 38,672,208 equity shares by the shareholders and promoters.

Post the issue, the promoter shareholding will decline 15.28 percent and come down to 35.65 percent from the current 50.93 percent stake held by the them in the company.

Of the total offer size, 75 percent of the net offer will be reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent is for retail investors.

4.         Objectives of the Issue

The objects of the Offer are to achieve the benefits of listing the equity shares on the stock exchanges and the sale of shares by the selling shareholders (being Neha Singh, Abhishek Goyal, Elevation Capital, Accel India IV (Mauritius) Limited, SCI Investments V, Prashant Chandra, Binny Bansal, Sachin Bansal, WGG International Limited, Sahil Barua, Deepak Singh, Trustees, NRJN Family Trust, Milliways Fund LLC, Rathnagirish Mathrubootham, Trustees, Kolluri Living Trust, Apoletto Asia Ltd and Manoj Kumar Gandhi) in the offer.

The company will not get any proceeds from this public offer and the proceeds will entirely go to the promoters.

5.    Lot Sizes

Investors can bid for a minimum lot size of 185 shares and in multiples thereof. The minimum investment for a retail investor works out to Rs 14,800 at the upper end of the price band for 185 shares. A retail investor can apply for up to 13 lots or 2,405 shares for an amount of Rs 1,92,400.

6.         Company Profile & Industry

The company was incorporated in 2012 and is among the leading global market intelligence providers for private company data and rank among the top five players globally in terms of number of companies profiled offering data of private market companies across sectors and geographies.

It has one of the largest coverage of private companies in emerging technology segment such as IoT, artificial intelligence, virtual reality, robotics, block chain and electric vehicles.

TTL has an asset light business model and operate a Software as a Service (“SaaS”)-based platform that scanned over 662 million web domains, and profiled over 1.84 million entities. It offers customers private company data for deal sourcing, identifying M&A targets, deal diligence, analysis and tracking emerging themes across industries and markets, among other uses, through subscription-based platform.

Its platform has 3,271 users across 1,139 Customer Accounts in over 58 countries, as of June 30, 2022. The customers include a number of Fortune 500 companies and/or their affiliates. Customer accounts have increased at a CAGR of 30.42 percent, from 642 Customer Accounts, as of March 31, 2020 to 1,092 Accounts, as of March 31, 2022, and 1,139 Customer Accounts as of June 30, 2022.

The company had last raised close to Rs 20 crore from KG Global Platform Fund in August 2019 by issuing 70,872 Series B2 CCPS at price of Rs 2954.62 per share.

The total addressable market for private market data was $ 1,322 million in 2021 and is expected to grow at a compounded annual growth rate (CAGR) of around 12 percent over 2021-25 to reach a size of $ 2,097 million by 2025. The growth of the market is expected to be mainly dependent on the growth of the number of private equity, venture capital & other investment firms, large corporates and other entities who will be willing to invest in private companies.

7.    Financials

During the previous three financial years, TTL had recorded a turnover of Rs 6.3 crore in FY20 when its net loss stood at Rs 54.0 crore. For FY21, the company’s turnover improved to Rs 55.7 crore and its net loss dipped to Rs 5.4 crore. In FY22, TTL registered a turnover of Rs 65.2 crore while the net loss stood at Rs 4.9 crore. FY22.

During Q1FY23, the company reported a 22.9 percent YoY growth in the business, mainly supported by a 20.4 percent higher customer base. Lower employee cost, as percent of top-line led to an EBITDA profit of Rs. 0.2 crore, compared to a loss of Rs 0.6 crore in Q1FY22. Other income (net of exceptional items) stood at Rs 0.7 crore (compared to net other income loss of Rs 0.1 crore in Q1 FY22). As a result, reported profit stood at Rs 0.8 crore in Q1FY23, compared to a reported loss of Rs 0.2 crore in Q1FY22.

On trailing twelve month (TTM) basis, top-line stood at Rs 66.9 crore with reported earnings before interest, tax, depreciation and amortization (EBITDA) of Rs 1.1 crore and a PAT loss of Rs 3. 3crore.

For the last three fiscals, TTL has reported an average negative EPS of Rs - (1.67) and an average negative return on net worth (RoNW) of - (26.42%).

8.    Strengths and business strategy

The company is a leading global provider of differentiated private market data & intelligence with diverse, longstanding and growing global customer base. Its secure technology platform is conceptualized & developed in-house and is easily scalable which results in significant cost advantages from India-based operations. The company also gains its strength from experienced promoters, Board of Directors and senior management team backed by marquee investors

9.    Anchor Book

The company on October 7 has raised Rs 139.22 crore via anchor book ahead of public issue opening. The anchor investors have subscribed for 1.74 crore equity shares at a price of Rs 80 per share. Total 15 investors were participants in the company via anchor book included Nippon Life India, ICICI Prudential, India Acorn Fund, Ashoka India Equity Investment Trust Plc, Whiteoak Capital, Kotak MF, Abakkus Emerging Opportunities Fund, Reliance General Insurance Company, BNP Paribas Arbitrage, Tara Emerging Asia Liquid Fund, and Motilal Oswal Fund.

Out of the total allocation to anchor investors, 75.26 lakh equity shares were allocated to 4 domestic mutual funds through a total of 6 schemes.

10.     Grey Market, Allotment & Listing Dates

The company’s shares are not commanding any premium in the grey market currently, according to IPO Watch and IPO Central, both of which track the grey market movements.

Shares will be allotted to successful bidders on October 17, and the refund to unsuccessful bidders will be credited their accounts on October 18. Shares will be credited to the demat account of the successful bidders by October 19 and the stock will debut on the bourses on October 20.