Trafiksol ITS Technologies has launched its much-awaited SME Initial Public Offering (Trafiksol ITS Technologies IPO) today, aiming to raise ₹45 crore.
Trafiksol ITS Technologies IPO Details
With a price band set between ₹66 and ₹70 per share, the IPO has already witnessed a tremendous response on its opening day, signaling strong market interest, particularly among retail investors.
The IPO received overwhelming demand on Day 1, with the issue being subscribed 12.41 times by 2:00 PM. A total of 5.29 crore bids were received for the 42.66 lakh shares on offer. The retail investor segment led the charge, with a 20.93 times subscription, while the non-institutional investors (HNIs) saw a subscription of 9.09 times. However, the qualified institutional buyer (QIB) category has not yet registered any bids.
The Trafiksol ITS Technologies IPO is entirely a fresh issue of 64.1 lakh shares, aiming to raise approximately ₹45 crore. The company plans to utilize the net proceeds from the IPO for key objectives, including:
- Purchasing specialized software.
- Repaying or prepaying part of its existing borrowings.
- Meeting working capital requirements.
- General corporate purposes.
Allotment and Listing Dates
The IPO is open for subscription from September 10 to September 12, 2024. The allotment of shares is expected to be finalized by September 13, with listing anticipated on the BSE SME platform on September 17.
Minimum Investment for Retail Investors
The minimum lot size for retail investors is 2,000 shares, translating into an investment of ₹140,000. High Net-Worth Individuals (HNIs) are required to invest in at least two lots (4,000 shares), amounting to ₹280,000.
Grey Market Premium (GMP)
Trafiksol’s IPO has generated substantial buzz in the grey market. The grey market premium (GMP) for the IPO stands at ₹85 per share on September 10, reflecting a significant premium of 121.43% over the upper price band of ₹70. This indicates that the stock could debut at an estimated price of ₹155 per share on listing day, making it an attractive opportunity for investors seeking short-term gains.
About Trafiksol ITS Technologies
Founded in 2018, Trafiksol ITS Technologies is a leading provider of Intelligent Transportation Systems (ITS) and automation solutions. The company offers services like software development, consulting, and delivery across multiple platforms. Specializing in Advanced Traffic Management Systems (ATMS), Toll Management Systems (TMS), and Tunnel Management Systems, Trafiksol has shown robust financial growth, with an 80% revenue increase and a 153% rise in profit after tax (PAT) in FY24 compared to FY23.
Should you buy?
Ekadrisht Capital Private Limited is acting as the book-running lead manager for the IPO, while Maashitla Securities Private Limited is the registrar. Ss Corporate Securities is the designated market maker.
According to market experts, Trafiksol ITS Technologies has a promising future due to its role in the rapidly growing ITS sector. Dilip Davda, an IPO analyst from Chittorgarh.com, noted, “Based on the company’s FY24 earnings, the issue seems reasonably priced. Investors with a medium to long-term horizon may find this IPO a valuable addition to their portfolio.”
Final Thought: The strong demand and healthy grey market premium suggest that Trafiksol ITS Technologies IPO could offer solid returns. However, investors should carefully consider their financial goals and risk tolerance before making investment decisions.
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