Trust Fintech makes a strong debut, shares list at 42% premium to IPO price
Upstox
2 min read • Updated: April 4, 2024, 11:55 AM
Summary
The Trust Fintech IPO, which was open for subscription between 26 to 28 March, was oversubscribed by a huge 108.63 times.
Shares of Trust Fintech Ltd made a spectacular debut on the NSE Emerge platform on Thursday, April 4, listing at a 42% premium over its initial public offering (IPO) price.
The Trust Fintech stock opened the session at ₹143.25 apiece on the NSE, up 41.8% compared to its IPO price of ₹101. Within minutes of opening, the share price hit the 5% upper circuit of ₹150.4 per piece.
Since the minimum bid size for retail investors in the Trust Fintech IPO was 1,200 shares, successful bidders who were allotted shares in the issue would be sitting on a profit of at least ₹50,700 (₹42.25 x 1,200) as soon as trading began in the stock.
The Trust Fintech IPO, which was open for subscription during March 26-March 28, was oversubscribed by a huge 108.63 times.
Non-institutional investors (NII) showed the most interest, with their portion overbid by 244.5 times. The retail category saw a subscription of 75.10 times, while qualified institutional buyers’ portion was bought 65.38 times.
The Trust Fintech IPO was a 100% book-built issue of ₹63.45 crore. The offer was entirely a fresh issuance of 62.82 lakh shares of face value of ₹10 each, with no offer-for-sale (OFS) component. The price band of the issue was fixed at ₹95-101.
The company had appointed Corporate Capital ventures Pvt. Ltd as the book-running lead manager, while Bigshare Services Pvt. Ltd was the registrar for the issue. The market maker for the Trust Fintech IPO was SS Corporate Securities.
Trust Fintech had said that it intended to utilize the IPO proceeds for expanding development facilities, upgrading IT infrastructure, enhancing existing products, covering business development expenses, and meeting general corporate requirements.
Incorporated in 1998, Nagpur-based Trust Fintech is a software development company that specializes in providing core banking software, IT Solutions, ERP Implementation, Customized Software Solutions Development, SAP B1, and Offshore IT services for the BFSI sector.
The company offers 10+ banking products for commercial, cooperative banks, and financial institutions. These include Core Banking, Loan Origination, GST Compliance, Financial Accounting, Billing, SAP B1 services, add-on modules for statutory report generation, ATM reconciliation, anti-money laundering, agency banking, and mobile banking.
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