Tracxn Technologies IPO listing: Stock jumps over 16% from listing price on BSE, NSE

Tracxn Technologies, a private platform for market intelligence, has made its stock market debut today, 20 October. On the BSE, it opened at Rs 83 per equity share, 3.75 percent up from the issue price. The stock later zoomed to Rs 93.30, a jump of 16.63 percent from its issue price, as per data from the BSE at 10:49 am. On the NSE, the shares opened at 84.50 but soon started trading 16.62 percent higher at Rs 93.30. Stock market specialists had predicted that the financial sector would confront significant obstacles such as a global recession, and rising interest rates that could affect the activity and traction of the capital markets, investment banks, and family offices. They claimed that Tracxn Technologies would also face the same difficulties, but so far the prediction seems to have proven false. According to Aayush Agrawal, Senior Research Analyst at Swastika Investmart, internationally rising interest rates and recessionary conditions in important markets like North America and Europe have significantly reduced activity and traction in the private equity, venture capital, investment banking, and family office sectors. Merger and Acquisition activity has also been muted. He continued by saying that the company will struggle to significantly expand its clientele and top line in the upcoming years. “It was extremely challenging to recommend this issue due to the extravagant Pricing to Sales valuation of 12.5 (Based on FY 22 data and Upper band price) and fierce competition from international companies. Therefore, we gave this issue an Avoid Rating. Additionally, before determining whether to make a long-term investment or not, investors must wait a few quarters,” Agarwal had added further. While the issue size of Tracxn Technologies’ IPO was relatively small, investors from all sectors gave it a lacklustre response. The company has just recently begun generating profits, and the size of its commercial activities may possibly contribute to the low subscription rates. Tracxn Technologies is among the top five global market intelligence suppliers for private company data, according to a Frost & Sullivan analysis. Through its public offering, Tracxn has raised Rs 309 crore. Given that there was a comprehensive offer for sale, the selling shareholders—promoters and investors including Binny and Sachin Bansal, co-founders of Flipkart—received that money only after deducting issue costs. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.