Should you subscribe or avoid? Know Anil Singhvi's recommendation

The Initial Public Offering (IPO) of Tracxn Technologies received 23 per cent subscription on the first day of offer on Monday. The IPO received bids for 49,56,520 shares against 2,12,69,714 shares on offer, according to a NSE data.

The Bengaluru-headquartered company operates on a Software as a Service (SaaS) model and is among the leading market intelligence providers for private company data. Zee Business Managing Editor Anil Singhvi has given a netural rating for investment in the Private market intelligence platform. He added it's a unique platform and is the first such to be listed in the India with this business model. 

There are high growth chances of the company as there is high trend of investments in the start-ups in India right now, as well as its a small IPO with small price range.  The start-up culture is growing so the promoters will get a chance for business development," Singhvi said. 

For the fiscal year 2021, the company clocked a total revenue of Rs 55.74 crore, which was Rs 63.13 crore a year ago. Zee Business Managing Editor Anil Singhvi said the valuation the company has set is quite high as far as their revenue is concerned. He has advised investors to invest for a long time. He added, "those who want to take a chance for small price IPO can go ahead but the decision is completely yours as I have given a netural rating for investment.

Tracxn Technologies IPO allotment date is October 17. The public issue is proposed for listing on both NSE and BSE October 20. It has decided to allocate a total of 1.74 crore equity shares to anchor investors at Rs 80 apiece, aggregating the transaction size to Rs 139.22 crore. India Acorn Fund, BNP Paribas Arbitrage, Whiteoak Capital, Kotak Mutual Fund (MF), ICICI Prudential MF, Nippon India MF and Reliance General Insurance Company are among the anchor investors.

The portion for Retail Individual Investors (RIIs) got subscribed 1.23 times. The category for non-institutional investors received 4 per cent subscription. The IPO of up to 3,86,72,208 equity shares is in a price range of Rs 75-80 a share.

Market intelligence platform Tracxn Technologies on Friday said it has raised a little more than Rs 139 crore from anchor investors. At the upper end of the price band, the IPO is expected to garner Rs 309 crore.

Tracxn was launched in 2015 by Neha Singh and Abhishek Goyal who have had their stints as venture capitalists at Sequoia and Accel Partners, respectively. IIFL Securities is the manager to the offer.