Tracxn Tech surges 25% on market debut, stock hits Rs 100-mark

Shares of Tracxn Technologies (Tracxn) jumped 25 per cent to Rs 100 as against its issue price of Rs 80 on the National Stock Exchange (NSE) after making a quiet debut on Thursday. The stock of the data processing services company listed at Rs 84.50, a 6 per premium to its issue price.

On the BSE, Tracxn started trade at Rs 83, and thereafter it rallied to a high of Rs 98.95 in intra-day trade so far.

At 10:23 AM, the stock traded at Rs 93.15, up 16 per cent when compared with its issue price. A combined 14.4 million equity shares changed hands on the NSE and BSE. In comparison, the Nifty 50 was down 0.22 per cent at 17,473.

Tracxn is one of the leading global market intelligence providers for private company data and as per F&S, ranks among the top five players globally in terms of number of companies profiled offering data of private market companies.

Tracxn has an asset light business model and operate a software as a service (SaaS) based platform. It offers customers private company data for deal sourcing, identifying M&A targets, deal diligence, analysis and tracking emerging themes across industries and markets, competitor bench marking, company and sector specific reports & news events, etc, through their subscription-based platform, Tracxn.

As per Frost & Sullivan, the total addressable market for private market data services is expected to grow at 12 per cent CAGR in CY20-25 (resulting into market penetration of 65 per cent in the next five years from current 50 per cent), ICICI Securities said in a note.

Private equity firms, venture capital firms and investment banking companies have been the biggest adopters of private data services. With growing users for private market data, the company is looking to capitalize on the opportunity by growing its customer base further. A good chunk of its business also comes from repeat business (74 per cent retention) and the company is looking to capture that leg of growth as well. The pricing has largely been stagnant over the last three years but with scale benefits in the future, we believe it could be one of growth levers in the medium to long term, the brokerage firm said.