SME IPO: BFSI-Focused Trust Fintech's Public Offer Opens: Latest Subscriptions, GMP Here

Trust Fintech, a Nagpur-based small and medium enterprise (SME) specialising in software as a service (SaaS) for the BFSI sector, is set to launch its initial public offering (IPO) today, March 26, aiming to raise Rs 63.45 crore. The IPO will remain open for subscription until March 28, with a price range of Rs 95-101 per share. The company has already garnered significant interest, with a strong grey market premium and a successful anchor investor round.

Grey Market Premium (GMP):

Shares of Trust Fintech are currently trading at a 39.6% premium in the grey market, indicating strong investor demand. The grey market price is Rs 40 per share, significantly higher than the upper price band of Rs 101.

Anchor Issue:

Prior to the IPO, Trust Fintech raised Rs 18.05 crore through an anchor investor round, allocating nearly 1.8 million shares at Rs 101 per share. Notable investors in the anchor round include Finavenue Capital Trust, Finavenue Growth Fund, and Persistent Growth Fund, Varsu India Growth Story Scheme 1.

Business Profile:

Trust Fintech primarily offers core banking software solutions to medium and large banks and financial institutions. Its flagship product, TrustBankCBS, is a core banking software that serves as the backbone for banking operations. Additionally, the company provides MicroFinS, catering to small and growing cooperative societies and others. Trust Fintech's other services include loan origination software, GST compliance software, financial accounting and billing software, ATM reconciliation, anti-money laundering software, agency banking solutions, and mobile banking solutions.

Financial Performance:

In the financial year 2022-23, Trust Fintech reported revenue of Rs 22.5 crore and a profit after tax (PAT) of Rs 4 crore. This marks a significant improvement over the previous year, where it reported revenue of Rs 17.6 crore and a PAT of Rs 1.3 crore. In the financial year 2020-21, the company's revenue stood at Rs 23.9 crore, with a PAT of Rs 2.1 crore.

Objects of the IPO

Trust Fintech plans to utilise the net proceeds from the IPO for various purposes. It aims to use Rs 15.19 crore to set up an additional development facility and for the installation of fit-outs and interior design works in Nagpur, Maharashtra. Another Rs 15 crore will be used to fund expenditures related to upgrading existing products, while Rs 3 crore will be allocated for procuring hardware and upgrading IT infrastructure. Additionally, the company plans to utilise Rs 9 crore for business development, sales, and marketing expenses, with the remainder earmarked for general corporate purposes.

Trust Fintech IPO

Trust Fintech's IPO presents an opportunity for investors to participate in the growth story of a company that is a key player in providing software solutions to the BFSI sector. With a strong business profile, robust financial performance, and a clear plan for growth, Trust Fintech is poised to capitalise on the increasing digitization and automation in the banking and financial services industry.