Tracxn Technologies' IPO to raise up to Rs 309 crore was subscribed 23 percent on Monday, the first day of the bidding process. The initial share sale, entirely an offer for sale (OFS) meaning the company won't get any proceeds from the issue, will be available for bidding for three trading days ending Wednesday.

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By the end of the day, the IPO of Tracxn Tech — a Bengaluru-based provider of market intelligence data — received a total of 49.6 lakh shares as against the total 2.1 crore shares on offer. The IPO saw strong participation from retail investors.

Out of the total issue, up to 75 percent of the shares are reserved for qualified institutional buyers, up to 15 percent for non-individual investors and up to 10 percent for retail investors.

"The company has been generating free cash flows... In FY22 (from April 2021 to March 2022), the company's free cash was at approximately Rs 5 crore ex-IPO investments," Neha Singh, Co-Founder and CEO of Tracxn Technologies, told CNBC-TV18.

She said the company's business does not require heavy capital expenditure. "We can service our investors via free cash flow... Approximately 78 percent of the profit generated went directly to the bottom line," she said.

The company has increased its headcount by about 150 in the last one year, which takes the company's team strength to 800 members, Singh said.

Tracxn commanded a premium of around Rs 10 in the grey market — an unofficial market for unlisted securities — ahead of the launch of the IPO. Learn what grey market really is

Potential investors will be able to bid for Tracxn Technologies shares in a price range of Rs 75-80 in multiples of 185 under the IPO. This makes one lot worth Rs 13,875-14,800.

The finalisation of the basis of allotment for the Tracxn Tech IPO is likely on October 17, and the credit of shares to demat accounts on October 19.

The stock is likely to debut in the secondary market on October 20.

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First Published:Oct 10, 2022 12:34 PM IST