Trust Fintech Lists at 42% Premium at Rs 143.25 per share on NSE

Trust Fintech is a software development company that specialises in providing core banking software, IT solutions, ERP implementation, and customized software solutions development for the BFSI sector, debuted on the Indian stock market today.

The stock of Trust Fintech opened at Rs 143.25 per share on the NSE, indicating an impressive 41.83% premium over the final issue price of Rs 101 per share. The market capitalisation on the NSE stands at around Rs 341 crore.

IPO Proceeds

The company plans to utilise the net fresh issue proceeds for various purposes these include setting up an additional development facility and carrying out fit-out and interior design works in Nagpur, Maharashtra, along with investment in procuring hardware and upgrading IT infrastructure.

Funds will also be allocated towards enhancing, maintaining, and upgrading existing products, as well as meeting global and domestic business development, sales, and marketing expenses. Additionally, a portion of the proceeds will be used for general corporate expenses.

Business Overview

Incorporated in 1998, Trust Fintech Limited is a software development company that specialises in providing core banking software, IT solutions, ERP implementation, and customized software solutions development 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.

The company’s product portfolio consists of Banking Software and Software as a Service. The company has provided services in India, Sri Lanka, Nepal, California, Gambia, Tanzania, Ghana, Liberia, Nigeria, Zimbabwe, and a few more countries.

It has a global footprint in more than 25 countries and a global customer base of more than 200 BFSI institutions with Core Banking.

Subscription details

On March 28, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 108.63 times. The public issue received remarkable interest, with the retail category being subscribed 75.10 times, while the DII and NII categories reached a subscription rate of 65.38 and 244.48 times respectively.

The IPO price band was Rs 95 and Rs 101, with a face value of Rs 10 per share and a lot size of 1200 shares. The total size of the company’s IPO was Rs 63.45 crore, and the final share issue price was fixed at Rs 101 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 42% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.