Bengaluru-based SaaS startup defies grey market predictions, lists at ₹83 against ₹80 issue price, marking a significant moment for India’s tech IPO landscape
In a surprising turn of events, Tracxn Technologies, the Bengaluru-based SaaS company specializing in private market intelligence, made its stock market debut with a 3.7% premium over its issue price. The company’s shares opened at ₹83 on the stock exchanges, surpassing the initial grey market predictions that had indicated a discount.
The listing comes at a time when Indian stock markets have been experiencing volatility, with the broader markets showing signs of weakness after four consecutive sessions of gains. Despite these challenging conditions, Tracxn Technologies managed to secure a market capitalization of ₹832 crore on its first day of trading.
The company’s Initial Public Offering (IPO), which was structured entirely as an Offer for Sale (OFS), saw moderate investor interest with a subscription rate of 2.01 times. The offering received bids for 4.27 crore equity shares against the 2.12 crore shares available, reflecting cautious investor sentiment in the current market environment.
“The listing performance of Tracxn Technologies demonstrates the market’s growing appetite for technology companies with strong fundamentals, even in challenging market conditions,” says Rajesh Kumar, Senior Market Analyst at Capital Markets Research. “While the premium is modest, it’s significant considering the current market volatility and the fact that several recent tech IPOs have struggled to maintain their listing prices.”
The IPO garnered particular attention due to the participation of prominent startup ecosystem figures, including Flipkart founders Binny Bansal and Sachin Bansal, who offered to sell up to 12.63 lakh shares each as part of the OFS. This move represents a significant moment for India’s startup ecosystem, as it showcases how early investors can achieve exits through public markets.
Founded in 2015, Tracxn Technologies has established itself as a comprehensive platform for private market intelligence, having analyzed over 660 million web domains and profiled more than 1.84 million companies. The company’s database serves as a crucial resource for investors, venture capital firms, and corporations looking to track and source companies across various sectors and geographies.
However, analysts have expressed concerns about the company’s financial performance, particularly its continued operational losses despite showing strong business growth over the past three fiscal years. “While Tracxn’s business model and market positioning are strong, investors will be closely watching its path to profitability,” notes Priya Sharma, Technology Sector Analyst at Investment Research Group.
For Tamil Nadu’s startup ecosystem, Tracxn’s listing carries significant implications. “This IPO serves as a blueprint for Tamil Nadu-based SaaS companies considering the public markets route,” says Dr. Ramakrishnan, President of the Tamil Nadu Startup Association. “It demonstrates that investors are willing to back technology companies with strong market positions, even if they’re currently in their growth phase.”
The successful listing of Tracxn Technologies could potentially encourage more Tamil Nadu-based startups, particularly in the SaaS sector, to consider public listings as a viable exit option. The state’s robust SaaS ecosystem, centered around Chennai, has been producing globally competitive companies, and Tracxn’s experience could provide valuable insights for these companies’ future IPO plans.
