Since the Initial Public Offering (IPO) listing date for the Bangalore-based platform for tracking innovative firms worldwide, Tracxn Technologies Limited, is today, which is the 20th of October, 2022, shares of the company will begin trading on secondary markets. The equity shares of Tracxn Technologies Limited will be listed and admitted to trading on the stock market exchanges of India in the list of the “B” group of securities during Special Pre-open Session (SPOC).
Stock market specialists predict that the financial sector will confront significant obstacles, such as rising interest rates, and the ongoing global recession, that could affect the activity and traction of the capital markets, family offices, and investment banking institutions. They claimed that Tracxn Technologies Limited would also face the same difficulties. In addition, the company’s share price has been fluctuating over the past couple of days at an IPO Grey Market Premium (IPO GMP) of ‘0’ to “-ve INR 3”. Therefore, the debut of the firm’s shares could be “muted to -ve.”
Senior Manager of Investment Banking at Swastika Investment Limited, Aayush Agrawal, stated that due to the firm’s high valuations, weak subscription numbers, and the fact that it is an Offer For Sale (OFS) issue, Tracxn Technologies Limited. It is predicted to get a “muted to -ve” listing. The present Grey Market Premium is -3, or roughly 3.75% lower than the issue price. Worldwide rising interest rates and recession conditions in essential regions such as the North American and European markets have significantly reduced activity and traction in the Venture Capital (VC), Private Equity (PE), investment banking, and family office sectors. Mergers and Acquisitions (M&A) activity has also become muted. Aayush Agrawal continued by saying that the business will struggle to significantly expand its clientele and bottom line in the years to come.
The Founder of UnlistedArena.com, Abhay Doshi, made a statement saying that even though the issue size of Tracxn Technologies Limited’s IPO was relatively small, investors from every sector gave it a bland reaction. The firm has only recently begun reporting earnings, and its commercial activities’ size may contribute to the low subscription rates. As a result, the listing may be limited to the price of its issue.