Tracxn’s IPO subscribed 1.61 times on the first day, here’s how it attracts attention

Almost a decade after it was founded, Tracxn has posted strong growth as it uses AI and analytics to track data for companies in more than 30 countries. Although 70 per cent of its revenue comes from abroad, the firm has chosen to make its stock market debut in India eyeing local wealth generation. The decision has paid off for Tracxn as its IPO has been subscribed 1.61 times, with 84 per cent subscription on its final day.

Eyeing demand for tech stocks in India

The rationale behind raising Rs 309 crore from its first share sale in India, was the demand for companies offering Software as a Service (SaaS) with a high margin. Against 2.12 crore shares that the tech company was offering, people have bought 3.43 crore equity stocks, after the part kept for retail investors was already booked completely on the first day. The per share price was set at Rs 75 to Rs 80 for the IPO.

Battling with attrition

Although the firm has been battling to retain talent amid double digit attrition which has affected the entire industry in India, Tracxn has received a positive response from the market. It had big ticket stakeholders such as Flipkart founders Sachin and Binny Bansal, who have exited the company after selling all their shares for the public offering. Although the IPO was subscribed 13 per cent in the first three hours, Tracxn’s growth after the M&A demand in the pandemic, faces competitors such as Crunchbase and Pitchbook.

The company which tracks startups, has a clientele divided into two equal parts, with 50 per cent being investors and the rest being corporates. As for competition, the company is confident of growth since there are only four to five firms which are providing the private data service such as Tracxn.