InvestorQ : How was the subscription response to the Tracxn IPO that has just closed?
Aditi Sharma made post

How was the subscription response to the Tracxn IPO that has just closed?

Mahima Roy answered.
1 month ago

The IPO of Tracxn Technologies Ltd worth Rs309.38 crore entirely comprised of an offer for sale with no fresh issue component in the IPO. The IPO response was fairly tepid on Day-1 and Day-2 of the IPO and it just about got through on the last day. As per bid details put out by the BSE, Tracxn Technologies IPO was subscribed just about 2.01X overall at the close of the third day with prime demand from the retail segment. The issue closed for subscription on 12th October 2022. It had got subscription for 427.27 lakh shares overall against the total available quota of 212.70 lakh shares on offer in the IPO.

Before I get into the QIB portion, let me first talk about the anchor portion of the IPO. A day ahead of the opening of the IPO, the company placed a total of 174.02 lakh shares with anchor investors at the upper end of the price band of Rs.80. There were a total of 15 anchor investors who got the allotment and the anchor intake was to the tune of Rs.139.22 crore. The subscription was dominated by domestic funds. The public issue had a quota of 116.02 lakh shares net of anchor allocation and got bids for 192.84 lakh shares till the close of Day-3 subscription. That translates into an oversubscription ratio of just about 1.66X.

Let us now turn to the HNI or the NII portion of the IPO. This portion was subscribed just about 0.80 times getting bids for just about 46.14 lakh shares against the available quota of 58.01 lakh shares, which is rather low by current IPO market standards. Funded applications were largely missing in the story, which is not surprising. Within the NII portion, the bids above Rs10 lakh category (B-HNIs) got subscribed 0.72X while the below Rs10 lakh bid category (S-HNIs) was taken up around 0.94X. However, it must be remembered that this break up is just for information and is already part of the overall HNI bids depicted.

Finally, let me turn to the retail portion, which actually got the best response among the 3 categories. That is rather normal in issues where the price is set low. The retail portion was subscribed a relatively more honourable 4.87 times at the close of Day-3, which is indicative of a reasonable retail appetite. However, here let me emphasize that the retail allocation was only 10% in this IPO with 75% allocated to the QIBs. In the retail segment, out of the 38.67 lakh shares available on offer, valid bids were received for 188.32 lakh shares, and this includes bids for 162.33 lakh shares at the cut-off price. IPO price band was (Rs75-Rs.80).