 "Trust Fintech SME IPO opens today: Check GMP, anchor issue & other details")
The initial public offering (IPO) of small and medium enterprise (SME) Trust Fintech will open for public subscription on Tuesday, March 26 and close on Thursday, March 28. The price band for the offer is Rs 95-101 and the company is aiming to raise Rs 63.45 crore via a fresh issue of nearly 6.3 million shares.
The bid can be made for minimum of 1,200 shares and in multiples of 1,200 shares thereafter. The stock will be listed on the NSE Emerge platform.
Based on July-Sept 2023 earnings, the stock will command a PE of 16.53 times on a post-issue basis, as per chittorgarh.com.
Grey market premium
In the grey market, shares of Trust Fintech were holding a strong 39.6 per cent premium (Rs 40 apiece) over the upper price band of Rs 101, according to investorgain.com.
Anchor issue
The company has raised Rs 18.05 crore from allocating nearly 1.8 million shares at Rs 101 to anchor investors ahead of the IPO.
The anchor round saw participations from marquee investors including Finavenue Capital Trust – Finavenue Growth Fund, Persistent Growth Fund – Varsu India Growth Story Scheme 1, among others. See list
Business profile
The Nagpur-based software as a service (SaaS) company mainly provides core banking software solutions to the BFSI sector.
Its banking related products comprise core banking software TrustBankCBS, which is its flagship product, and MicroFinS.
TrustBankCBS mainly serves medium to large banks and financial institutions. MicroFinS caters to small and growing co-operative societies and others.
Other services of the company include software for loan origination, GST compliance, financial accounting and billing Software, ATM reconciliation, anti-money laundering, agency banking, mobile banking, among others. SEE BUSINESS SEGMENTS
Objects of the IPO
Of the total net proceeds, the company aims to use Rs 15.19 crore to set up an additional development facility, instalment of fit outs and interior design works in Nagpur, Maharashtra.
Another Rs 15 crore is to be used to fund expenditure related to upgrading existing product. It intends to use Rs 3 crore for procuring hardware and upgrading IT infra. To meet its business development, sales and marketing expenses, it plans to use Rs 9 crore. The rest will be used for general corporate purpose.
Financial profile
| in Rs crore | FY23 | FY22 | FY21 |
| Revenue | 22.5 | 17.6 | 23.9 |
| Profit after tax | 4 | 1.3 | 2.1 |