Tracxn Technologies IPO: Muted response to initial public offer; issues subscribed 23 per cent on day 1

Despite strong retail demand, Tracxn Technologies' initial public offering (IPO) attracted a muted response as the issue was subscribed 23 per cent on day 1. The issue will close on October 12. Tracxn Technologies is selling shares in the range of Rs 75-80 per piece and is looking to raise around Rs 310 crore.

The Flipkart founders-backed IPO received bids for 49,23,775 shares, which was 23 per cent of the total issue size of 2,12,69,714 shares. The quota reserved for retail individual investors (RIIs) was over-subscribed at 1.22 times. Of the 38,67,220 shares available for RIIs, the total bids stood at 47,22,125. 

Among the shareholders who put their shares on sale include founders Neha Singh and Abhishek Goyal, Flipkart founders Binny Bansal and Sachin Bansal and a few other investors. 

Also Read: Diwali Bonanza for Central government pensioners, family pensioners; Centre revises dearness relief

The quota for non-institutional investors ((Bid amount of more than two lakh rupees up to ten lakh rupees) was subscribed 7 per cent as only 1,37,640 bids were received for 19,33,610 reserve shares. Non-Institutional Investors (Bid amount of more than ten lakh rupees) were subscribed only 2 per cent.     

According to the reports, the IPO was commanding a grey market premium (GMP) of Rs 6 per share. As far as the financials of the firm is concerned, it generated Rs 139.22 crore by allocating 17,402,494 shares to anchor investors at Rs 80 a piece. The offer for sale (OFS) consists of 38,672,208 equity shares. The company reported profits in the June quarter of FY23 while it recorded losses in FY22 and FY21.