Tracxn Technologies IPO is one of the most fervently awaited in the technology sector as it is the most well-known global market intelligence provider.
It spans many industries, including the company’s security, data storage, networking, payments, SaaS, consumer internet, marketplaces, the internet of things, bitcoin, and many more.
The initial public offering (IPO) will accept subscriptions starting on October 10 and ending on October 12, 2022. It seeks to raise Rs. 309.38 billion.
However, how precisely may a shareholder buy stock in a freshly listed company like Tracxn Technologies? In the following paragraphs, learn more about what may be one of the most profitable initial public offerings (IPOs) and how to buy Tracxn Technologies shares on the stock market.
Upcoming IPO in India: What is Tracxn Technologies?
The company was formed in 2013 and is presently one of the top five worldwide players concerning the number of companies profiled and information on private market companies operating in various industries and regions.
Artificial intelligence (AI), Internet of Things (IoT), virtual reality (VR), robots (RO), blockchain, and electric automobiles are just a few of the cutting-edge technology fields in which they have one of the most impressive coverages among private enterprises.
The organization manages the asset-light Trancxn Software as a Service (SaaS) platform. For various objectives, including deal sourcing, target selection for M&A transactions, deal diligence, analysis, and monitoring of new market and industry trends, customers may access sensitive corporate data via the Tracxn platform.
The program has scanned more than 662 million websites. Over 1.84 million companies are profiled in 2,003 feeds by industry, sector, subsector, and geography.
By the end of June 2022, 1,131 client accounts were serving 3,271 people across 58 different countries on the company’s platform. Several Fortune 500 companies and their subsidiaries are among its clientele.
When Is the Tracxn Technologies IPO Date?
| IPO Opening Date | 10-Oct-22 |
| IPO Closing Date | 12-Oct-22 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 1 per equity share |
| IPO Price band | Rs 75 to Rs 80 per equity share |
| Lot Size | 185 Shares |
| Min Order Quantity | 185 Shares |
| Listing at | BSE and NSE |
| Total Issue Size (Entirely OFS) | Rs. 309.38 Crores |
How Much is Tracxn Technologies Worth?
The company has set a price range of Rs 75 to 80 per share for its initial public offering (IPO), which aims to earn Rs 309 crore. The company’s top-end valuation, according to ICICI Direct, is close to Rs 800 crore. On an annualized basis, this translates to 240 times its profits and 10.9 times its revenues.
Additionally, the Tracxn IPO is an offer for sale with a total size of Rs 309.38 Crores. Shareholders may sell their shares under the OFS without the companies receiving any IPO profits. But the benefits of listing would be advantageous to the companies.
Promoters Neha Singh and Abhishek Goyal sold 76.62 lakh equity shares through the OFS in addition to the 12.63 lakh shares sold by Flipkart founders Binny and Sachin Bansal.
Along with Sahil Barua, who sold 2.07 lakh shares, other sellers included Elevation Capital (1.09 crore,) Accel India IV Mauritius (40.2 lakh,) SCI Investment V (21.81 lakh,) and others.
According to forecasts from Frost & Sullivan, the worldwide B2B information services industry, which was close to USD 140 billion in 2020, is anticipated to increase to USD 190 billion in 2025 at a CAGR of almost 6.16%.
Private market data services should expand by 6.79% globally. In addition to the expansion of PE, VC, and other investment companies, large companies, and other organizations ready to support private entrepreneurs, the development of large companies will also contribute to the market’s growth.
Strength and Opportunities of Tracxn Technologies IPO
1) The company is one of the most significant data and analytics suppliers for worldwide market information for private companies
2) The companies clientele is broad, long-standing, dedicated, and expanding globally
3) The companies’ technological base is solid
4) A safe, domestically developed, scalable technological platform
5) The company has state-of-the-art software created via ongoing research and development
6) Since the majority of the company’s personnel is in India, it has a cost advantage
7) Resource benefits from Indian-based companies are substantial
8) The entrepreneurs, board of directors, and senior management of the companies are all knowledgeable about the industry
9) Several influential individuals, including the founders of Flipkart, support the company.
10) Well-known investors assist the board of directors, promoters with extensive sector knowledge
11) The company’s sales have dramatically expanded over the last three years
12) Its revenues climbed from 6.3 Crores to 65.2 Crores, respectively, throughout the fiscal years 20 and 22.
Weaknesses and Risks of Tracxn Technologies IPO
- The company has just recently entered the industry
- The company is limited in certain places, including North America
- The company’s initial public offering (IPO) finances have just one objective: to sell shares for Rs 309.38 crores
- The selling shareholders get the money in an OFS transaction; the company does not
- The previous three years have seen a loss for the companies. Total assets, revenues, and earnings during the last three years and three months:
Financial Year ending / Period ending (Amt in Crores)
| Particulars | FY20 | FY21 | FY22 | 30-Jun-22 |
| Total Assets | 52.4 | 48.5 | 54.0 | 56.8 |
| Revenues | 6.3 | 55.7 | 65.2 | 19.1 |
| Profit After Tax | -54.8 | -4.2 | -4.9 | 0.9 |
| Profit % | NA | -7.45% | -7.45% | 4.84% |
- One must be cautious to determine if earnings will continue to rise in the subsequent quarters
- If investors put money into a company that is losing money, they won’t receive anything back. Pay close attention to what happened with Paytm and a few other companies that had previously shown losses before going public.
- If the company doesn’t maintain and expand its present client base, its capacity to increase sales and profitability will suffer
- Most of the company’s income comes from selling subscriptions to its Tracxn platform
- Companies’ growth may be affected if current customers don’t renew and no new ones join
- There is intense competition, and the company risks having its competitors steal its market share
- Potential investors should acquaint themselves with the detailed risk factors included in the RHP of the related document before participating in this initial public offering (IPO).
Tracxn Technologies IPO Review
Top investors in India assert that the company has recently begun to disclose earnings and that the scale of its commercial activity may be a contributing cause to its low membership level. Consequently, the listing may be muted only around its issue price.
According to a report by Religare Broking, “Competition intensity is high throughout the sector, and a company’s income may decline SEO Dubai if customers do not renew their subscriptions.” These factors affected investors’ choices during the subscription period and will continue to do so following the listing.
