Nagpur-based Fintech SaaS Firm Witnesses Continued Investor Interest After Stellar Listing
Following its recent high-profile initial public offering (IPO), Trust Fintech, a Nagpur-based fintech Software as a Service (SaaS) company, experienced a significant bulk deal just days after its stock hit the market. On Tuesday (April 9), a major transaction worth INR 5.42 crore (INR 5,42,50,560) took place, underscoring continued investor interest in the company’s growth prospects.
According to data from the National Stock Exchange (NSE), Tikri Management acquired 3.12 lakh shares of Trust Fintech at an average price of INR 173.88 per share, slightly below the closing price on April 9. Despite this, Trust Fintech’s shares closed 4.98% higher at INR 174 on NSE Emerge at the end of Tuesday’s trading session.
This bulk deal follows Trust Fintech’s stellar market debut just days earlier, where its stock soared by 42% on NSE’s small and medium enterprise platform, NSE Emerge, on April 4. The company’s shares were listed at INR 143.25 apiece, a significant premium compared to the issue price of INR 101 per share.
The IPO frenzy surrounding Trust Fintech was evident as the offering was oversubscribed by 101 times, reflecting robust demand from investors across the spectrum. With 45.39 crore bids received against 44.94 lakh shares on offer, the company successfully raised capital through a fresh issue of 62.82 lakh equity shares within a price band of INR 95-101 per share, aiming to raise INR 63.45 crore.
In its Draft Red Herring Prospectus (DRHP), Trust Fintech outlined its utilization of IPO proceeds, including establishing a new development facility, hardware procurement, IT infrastructure upgrades, global expansion funding, product enhancements, and general corporate expenses.
Founded in 1988 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Trust Fintech specializes in providing fintech solutions for ERP implementation and offshore IT services for the Banking, Financial Services, and Insurance (BFSI) sector. Its clientele includes district central cooperative banks, urban cooperative banks, rural banks, commercial banks, credit cooperative societies, and Non-Banking Financial Companies (NBFCs).
Despite fluctuations in revenue, Trust Fintech demonstrated strong growth potential, with net profits surging to INR 7.27 crore in the first half (H1) of the financial year 2023-24 (FY24) compared to INR 4.02 crore in the entire FY23. Revenues stood at INR 18.82 crore in H1 FY24 versus INR 22.54 crore in FY23.
