Trafiksol ITS Technologies opened its SME IPO for subscription on September 10 and the issue is set to close today, September 12. The company is targeting to raise approximately ₹45 crore through this offering, with plans to list its shares on the BSE SME platform. Trafiksol ITS Technologies IPO price band has been set at ₹66 to ₹70 per share.
The IPO witnessed overwhelming demand, with the issue subscribed 12.41 times till 2:00 pm on Day 1 of bidding.
The IPO received bids for 5.29 crore shares against the 42.66 lakh shares on offer. Specifically, the subscription breakdown was notable across different segments: the retail investor segment saw a subscription of 20.93 times, and non-institutional investors booked 9.09 times. However, the Qualified Institutional buyers segment has yet to see any bidding.
The Trafiksol ITS Technologies IPO is a fresh issue of 64.1 lakh shares. The company plans to use the net proceeds from the issue for several key purposes, including purchasing software, repaying or prepaying certain borrowings in part or in full, meeting working capital requirements, and covering general corporate expenses.
The minimum application lot size for retail investors is 2,000 shares, requiring an investment of ₹140,000. High Net-Worth Individuals (HNIs) must apply for at least 2 lots, or 4,000 shares, totalling ₹280,000.
The allotment for the IPO is expected to be finalized on Friday, September 13, 2024. The shares will be listed on the BSE SME platform on Tuesday, September 17, 2024.
Ekadrisht Capital Private Limited is the book-running lead manager for the IPO, Maashitla Securities Private Limited is the registrar, and Ss Corporate Securities is the market maker for this issue.
TrafikSol ITS Technologies Limited, established in 2018, provides intelligent transportation systems (ITS) and automation solutions. The company offers various services, including software development, consulting, and delivery. TrafikSol provides ready-made and custom software solutions across various platforms, including operating systems, business applications, and computer games. The company focuses on analyzing user needs to deliver tailored software solutions, along with ongoing maintenance.
As a specialized EPC (Engineering, Procurement, and Construction) firm, TrafikSol undertakes projects in Advanced Traffic Management Systems (ATMS), Toll Management Systems (TMS), and Tunnel Management Systems. The company's financial performance has been strong, with a revenue increase of 80% and a profit after tax (PAT) rise of 153% from the financial year ending March 31, 2023, to March 31, 2024.
"The company is engaged in providing comprehensive solutions for intelligent transportation systems and automation along with related IT developments. Its performance in the last three fiscal years indicates the likely trends ahead. Based on FY24 earnings, the issue relatively appears reasonably priced. Investors may park funds for medium to long term," Dilip Davda of Chittorgarh.com said.
The IPO's grey market premium (GMP) today is ₹85 per share, indicating an expected listing price of ₹155, a premium of 121.43 per cent from its issue price of ₹70. The GMP has been the same since September 10 but jumped from ₹80 on September 9.
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