Global market intelligence provider Tracxn Technologies IPO had a muted response, with 84% subscription as of the afternoon of October 12, the last day of bidding. Investors have purchased 1.78 crore shares so far, compared with 2.12 crore issued, according to data provided by the exchange.

The portion reserved for retail investors was fully booked on day one, with subscriptions 3.26 times the size of the allocation, while the portion reserved for non-institutional investors was 48% subscribed.

Accredited institutional investors bought 22% or 24.99 lakh shares. Tracxn plans to raise Rs 309 crore through an offer for sale (OFS). The price range has been fixed at Rs 75-80 per share. Flipkart founders Binny Bansal and Sachin Bansal will exit the company by selling their entire stake, while promoters Neha Singh, Abhishek Goyal and other investors will also participate in OFS.

According to a draft IPO filing, the company ranks in the top five globally in terms of the number of companies that provide data on private market companies across industries and geographies. It has posted strong revenue growth over the past three years thanks to a tech and startup boom and strong M&A activity during the pandemic.

However, the company faces stiff competition from private players such as Crunchbase, CBInsights, PrivCo and Pitchbook, as well as free online and offline sources of information for companies and businesses, including government records websites and open online databases, Swastika Investment said.

The brokerage said the activity and attractiveness of private equity markets, venture capital markets, investment banks and family offices are falling sharply as global interest rates rise and major markets such as North America and Europe slide into recession. Mergers and acquisitions and activity were also subdued.

Tracxn said it would be difficult to significantly increase its customer base and revenue over the next few years. In the end, “with an overvalued selling price estimate of around 12.5 (based on FY22 data and cap prices), it is difficult to recommend this question. We, therefore, give this issue an “avoid” rating,” the research firm said.

Tracxn Technologies had 1,139 customer accounts in more than 58 countries as of June 2022, representing a compound annual growth rate of 30.42% compared to 642 customer accounts in March 2020, the company said. Marketing efforts and testimonials from existing clients.

It recorded a profit of Rs 83.59 lakh in the quarter that ended June FY23, compared with a loss of Rs 72.02 lakh in the corresponding period of the previous fiscal, while operating income rose 23% to Rs 18.4 crore in the same period. In FY22, it reported a loss of Rs 4.84 crore compared to a loss of Rs 5.34 crore in the previous year, while revenue rose 45% to Rs 63.45 crore.