Trust Fintech IPO opens today; check the latest GMP for the SME issue

Trust Fintech’s initial public offering (IPO) opens for bidding on Tuesday, March 26 and can be subscribed for three-days, until Thursday, March 28. The company has fixed its share price in the range of Rs 95-101 apiece.

Investors can bid for a minimum of 1,200 equity shares and its multiples thereafter.

Trust Fintech, incorporated in 1998, is a software development company that specializes in providing core banking software, IT solutions, ERP implementation, customized software solutions development, SAP B1, and offshore IT services for the BFSI sector.

Trust Fintech is looking to raise a total of Rs 63.45 crore, which entirely consists of a fresh sale of 62.82 lakh equity shares. Trust Fintech is commanding a grey market premium of Rs 40-41 per share, suggesting a listing pop of around 40-41 per cent over the upper end of the price band.

The net proceeds from the issue shall be utilized towards setting up additional development facility, instalment of fit outs and interior design works; investment in procuring hardware and upgrading IT infra; funding of expenditure; meeting the global and domestic business development; and general corporate expenses.

Retail investors can apply for a single lot or 1,200 shares only, amounting to Rs 1,21,200. Non-retail investors need to apply for a minimum of two lots or 2,400 equity shares, amounting to Rs 2,42,400 equity shares.

The company offers more than 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.

Trust Fintech reported a net profit of Rs 7.28 crore with a revenue of Rs 18.83 crore for the six-month period ended on September 30, 2023. The company’s bottomline came in at Rs 4.02 crore with a revenue of Rs 22.70 crore for the financial year 2022-23.

Trust Fintech has reserved 3.18 lakh equity shares for SS Corporate Securities, the market maker for the issue. It has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs) and 35 per cent shares will be allocated to retail investors. Remaining 15 per cent shares will be reserved for non-institutional investors.

Corporate Capital Ventures is the book running lead manager of the Trust Fintech IPO, while Bigshare Services is the registrar for the issue. Shares of the company are scheduled to be listed at NSE SME platform with Thursday, April 4 as the tentative date of listing at the platform.