Tracxn Technologies is all set to launch an IPO on Monday, October 10 to raise up to Rs 309 crore. The initial share sale of Tracxn Tech — a Bengaluru-based provider of market intelligence data — is entirely an offer for sale (OFS), which means the company will not get any proceeds.

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Dealers said Tracxn Technologies commanded a premium of around Rs 10 in the grey market ahead of the IPO.

"Tracxn has emerged as a major player among private market data services providers offering enterprise grade data curation. The company’s operations being based in India provide an advantage in cost effectiveness as compared to its global competitors," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.

"The company was making losses till the year ended March 2022 and has posted positive results for the first three months of the current financial year. Hence, it will be too early to comment on its performance and valuation," he said.

Some find the valuation of the Traxcn issue to be expensive.

"There is no attraction in Traxcn Technologies in the grey market... We feel the issue is over priced," said Dinesh Gupta, Co-Founder of UnlistedZone, another firm that deals in unlisted shares.

Potential investors will be able to bid for Tracxn Tech shares in a price band of Rs 75-80 in multiples of 185, translating to Rs 13,875-14,800 per lot.

The IPO will remain open for three trading days till October 12. The basis of allotment is likely to be finalised on October 17 and the credit of shares to demat accounts on October 19.

Tracxn Tech shares are likely to be listed on bourses BSE and NSE on October 20.

Grey market is an unofficial market for unlisted securities.

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First Published:Oct 9, 2022 6:21 PM IST