In a remarkable show of investor interest, the Trust Fintech IPO, a small and medium-sized enterprise (SME) offering, witnessed a subscription rate of over 11 times on the second day of the subscription period. With today marking the last day to apply, the IPO has garnered significant attention from the investing community.
Impressive Retail Investor Participation
Retail investors displayed tremendous enthusiasm for the Trust Fintech IPO, as the portion reserved for them was subscribed a remarkable 18.44 times on the first day of the subscription period. This strong participation signifies the confidence retail investors have in Trust Fintech’s growth potential.
Subscription Details and Allocation Breakdown
The subscription data reveals a robust response from different investor categories. The portion reserved for non-institutional investors (NIIs) was subscribed 14.21 times, while the portion allocated for qualified institutional buyers (QIBs) remained under-subscribed on the second day.
Allocation Breakdown:
Retail Investors: 20.88 lakh equity shares (33.24% of the issue)
Qualified Institutional Buyers (QIBs): 18.99% of the issue
Non-Institutional Investors (NIIs): 14.25% of the issue
Market Makers: 3.18 lakh equity shares
Grey Market Premium (GMP) Surge
The grey market premium (GMP) for Trust Fintech IPO has witnessed a significant surge. Currently standing at ₹45, the GMP reflects a premium of 44.55% over the issue price of ₹101 per equity share. This rise indicates investors’ willingness to pay a higher price for the shares in the secondary market.
Utilization of Funds and IPO Timeline
Trust Fintech aims to raise approximately ₹63.45 crore (at the upper price band) from the IPO. The funds raised will be utilized for global and domestic business development, sales and marketing expenses, and general corporate purposes.
The basis of allotment for the IPO is expected to be finalized on April 1, 2024. Refunds will be initiated on April 2, and the shares will be credited to the demat accounts of allottees on the same day. Trust Fintech’s shares are likely to be listed on the NSE SME platform on April 3, 2024.
Market Anticipation and Outlook
Investors and market participants are closely monitoring the Trust Fintech IPO, considering the strong subscription numbers and the positive market sentiment surrounding the company’s offerings in the IT services and Fintech software solutions space.