Vijay Kedia-backed TAC Infosec shares makes blockbuster listing, debuts at 173% premium over issue price

Listing of cyber security company TAC Infosec Ltd turned out to be a bonanza for investors, with the company’s share price rising almost three times compared with its issue price in debut trade on Friday, April 5.

The TAC Infosec stock listed at ₹290 apiece on the NSE Emerge platform, which was a massive 173.5% premium over its initial public offering (IPO) price of ₹106 per piece. To top it, within minutes of opening, the stock hit the 5% upper circuit of ₹304.5 apiece.

This meant that bidders who were successfully allotted shares in the ace investor Vijay Kedia-backed TAC Infosec IPO would have seen their investment almost triple on the first day of trade itself.

Since the lot size was fixed at 1,200 shares in the public offer, successful retail bidders would have been sitting on a profit of at least ₹2.38 lakh (₹198.50 x 1,200) on Friday morning.

The ₹30-crore TAC Infosec IPO was open for subscription from March 27 to April 2. The price band for the issue was fixed at ₹100-106 per share. At the end of the bidding, the TAC Infosec IPO was oversubscribed by a massive 422 times.

The retail category saw huge overbooking of 433.8 times the total number of shares reserved for the category. The non-institutional investors’ (NII) portion was overbid by nearly 769 times, while the QIB category saw an oversubscription of 141.29 times.

The TAC Infosec IPO was entirely made up of new issuance of 2,829,600 equity shares, each having a face value of ₹10. There was no offer-for-sale (OFS) component. Ahead of the launch of the IPO, TAC Infosec had also raised ₹8.55 crore from anchor investors on March 26 by allotting 806,400 equity shares at a price of ₹106 apiece.

What will the company do with IPO proceeds?

The company had said that the proceeds from the IPO would be used for making investments in human resources and product development, acquiring TAC Security Inc. (Delaware, US) and converting it into a fully owned subsidiary, besides pursuing general commercial objectives.

Skyline Financial Services Pvt Ltd was the registrar while X Securities was the market maker for the IPO.

Incorporated in 2016, TAC Infosec offers security software products and solutions in India and global markets. The company provides risk-based solutions for vulnerability management and assessment, cyber security quantification and penetration testing in a SaaS (software as a service) model.

TAC Infosec’s clients include banks and financial institutions, government regulators and departments, large enterprises such as HDFC Bank, Bandhan Bank, BSE, National Payments Corporation of India, DSP Investment Managers Pvt. Limited and NSDL e-Governance. The company’s revenue in 2022-23 doubled to ₹10.1 crore from ₹5.2 crore in 2021-22.

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