Tracxn Technologies IPO subscribed 2.01 times at close

The Rs.309.38 crore Tracxn Technologies IPO, consisted entirely of an offer for sale. There was no fresh issue component in the IPO. The IPO saw fairly tepid response on Day-1 and Day-2 of the IPO and it just about got through with two time subscription overall on Day-3. As per the combined bid details put out by the BSE at the close of Day-3, Tracxn Technologies Ltd IPO was subscribed just 2.01X overall, with best demand coming from the retail segment subdued demand from QIBs and undersubscription from HNIs / NIIs. The issue has closed for subscription on 12th October 2022. 

As of close of 12th October 2022, out of the 212.70 lakh shares on offer in the IPO, Tracxn Technologies Ltd saw bids for 427.27 lakh shares. This implies an overall subscription of 2.013X. The granular break-up of subscriptions was in favour of the retail investors. QIB bids and NII bids typically gather most of the momentum on the last day, but that really did not happen in a big way.

Tracxn Technologies Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 07th October 2022, Tracxn Technologies Ltd did an anchor placement of 1,74,02,494 shares at the upper end of the price band of Rs.80 to 15 anchor investors raising Rs.139.22 crore. The list of QIB investors included a number of marquee global names like Ashoka Equity, India Acorn and BNP Paribas Arbitrage. Domestic anchor investors included Nippon India Fund, Kotak MF, ICICI Prudential MF, Whiteoak Capital MF, Kotak Life Insurance and Abakkus Fund.
The QIB portion (net of anchor allocation as explained above) has a quota of 116.02 lakh shares of which it has got bids for 192.84 lakh shares at the close of Day-3, implying a subscription ratio of 1.66X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Tracxn Technologies Ltd IPO subscription overall, the actual demand did not turn out that way in the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.80X (getting applications for 46.14 lakh shares against the quota of 58.01 lakh shares). This is a rather disappointing response on Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, but that was not visible as the overall HNI / NII portion itself got undersubscribed.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed just 0.72X while the below Rs10 lakh bid category (S-HNIs) got subscribed 0.94X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was subscribed a relatively better 4.87X at the close of Day-3, showing reasonable retail appetite. It must be noted that retail allocation is 10% in this IPO. For retail investors; out of the 38.67 lakh shares on offer, valid bids were received for 188.32 lakh shares, which included bids for 162.33 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.75-Rs.80) and has closed for subscription as of the close of Friday, 12th October 2022.