Trust Fintech, a Fintech SaaS company, witnessed an impressive 3.02X oversubscription of its initial public offering (IPO) on the first day, driven by strong demand from retail investors. The IPO, which opened on Tuesday, March 26, received bids for 1.35 crore shares against the 44.94 lakh shares on offer, according to data from the NSE.
Retail Investors Lead the Way
Retail investors played a significant role in the oversubscription, with the portion reserved for them oversubscribed by 5.33X. This segment received bids for 1.11 crore shares, surpassing the 20.88 lakh equity shares reserved for them.
Non-Institutional Investors Show Interest
Non-institutional investors (NIIs) also showed keen interest, subscribing to 2.72X of their quota. NIIs bid for 24.4 lakh shares compared to the 8.95 lakh shares available for them. However, there were no takers for the 11.9 lakh shares reserved for qualified institutional buyers (QIBs) on the first day of the IPO.
IPO Details and Utilization of Funds
Trust Fintech's IPO, which closes on March 28, has a price band of INR 95 to INR 101 per share with a lot size of 1,200 equity shares. At the upper end of the price band, the company aims to raise approximately INR 63.45 crore from the public offering and is set to list on NSE Emerge.
The IPO comprises a fresh issue of 62.82 lakh equity shares. The company plans to utilize the proceeds from the IPO to set up a new development facility, upgrade its IT infrastructure, enhance existing products, and expand its global footprint.
About Trust Fintech
Established in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Trust Fintech, headquartered in Nagpur, offers SaaS products and fintech solutions for ERP implementation, offshore IT services for the BFSI sector.
Trust Fintech reported a profit after tax (PAT) of INR 7.27 crore in the first half (H1) of the financial year 2023-24 (FY24), up from INR 4.02 crore in the entirety of FY23. The company also witnessed a rise in revenue to INR 18.82 crore in H1 FY24 compared to INR 22.54 crore in FY23.
