In a strategic move, Elevation Capital, a prominent venture capital firm, has successfully offloaded more than 15.66 Lakh shares of market intelligence platform Tracxn in two block deals, accumulating a sum of INR 15.09 Cr. The sale, transacted at an average price of INR 96.35 per share, signals Elevation’s intent to capitalize on the upward trajectory of both market sentiments and Tracxn’s financial health.
Block Deals Breakdown
Elevation Capital’s divestment involved two block deals, with 7.66 Lakh shares sold at INR 95.93 apiece in the first tranche, followed by the sale of another 8 Lakh shares at INR 96.78 apiece. At the end of September 2023, Elevation Capital held a 10.74% stake, equivalent to 1.09 Cr shares, in Tracxn.
Industry Trend and Profitable Ventures
The move by Elevation Capital aligns with a broader trend observed in the Indian new-age tech stocks. Notable instances include SoftBank Growth (Singapore) selling a 1.06% stake in Zomato for INR 1,127 Cr, Fireside Ventures divesting around 2% stake in Mamaearth for INR 238 Cr, and SoftBank selling a 2.51% equity stake in Delhivery for INR 747 Cr in November.
Additionally, Berkshire Hathaway engaged in a block deal, selling 1.6 Cr shares of Paytm for INR 1,441 Cr last month. These transactions underscore the current market dynamics and investors’ proactive strategies to seize opportunities and optimize returns.
Tracxn’s Financial Performance
Tracxn, the subject of these block deals, reported a remarkable financial performance in Q2 FY24. The net profit surged 3X quarter-on-quarter (QoQ) to INR 2.16 Cr, while total revenue grew by 8.2% to INR 22.48 Cr in the same quarter. This positive trajectory could have contributed to Elevation Capital’s decision to monetize a portion of its stake.
Market Reaction
Following these developments, shares of Tracxn experienced a marginal dip, ending today’s trading session 1.24% lower at INR 93.54 on the BSE.
