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Trust Fintech Ltd. IPO: Review, Valuation, Date & GMP

  


Trust Fintech Limited IPO  - Complete Overview

Established in 1998, Trust Fintech Limited is a Nagpur-based SaaS Product focused company specializing in providing Core Banking Software, IT Solutions, ERP Implementation, and Customized Software Solutions Development, SAP B1, and Offshore IT services for the BFSI sector. 

The company has invested in developing more than 10 banking-related products for Commercial and Cooperative Banks and Financial Institutions, including Core Banking Software, Loan Origination software, GST compliance software, Financial Accounting & Billing Software, GST Suvidha provider, SAP B1 Services, and various add-on modules for Statutory Report Generation, ATM Reconciliation, Anti-Money Laundering, and Mobile Banking solutions.

The company's product portfolio consists of two offerings: 

  • Banking Software

  • Software as a Service. 

It is primarily involved in the Implementation and deployment of Core banking Software, including TrustBankCBS and MicroFinS. 

TrustBankCBS, the flagship product of the company, is a web-based software available "on-premises with infrastructure," allowing customers to deploy it on their premises with customized infrastructure. 

MicroFinS, on the other hand, is a cloud-based Core Banking Solution for Savings & Credit for Cooperative Societies, Credit Unions, and Microfinance Institutions.

The company proudly holding several quality certifications such as ISO 27001:2013, ISO 9001:2015, and CMMI Level 5.

It boasts 25+ years of operational excellence and a dedicated team of 250+ individuals. 

It serves customers in more than 15 states of India and in over 10 countries worldwide, including California, Nepal, Gambia, Ghana, Liberia, Nigeria, Sri Lanka, Tanzania, Zimbabwe, Siberia, and the Central African Republic.

Operating through its offices located in Nagpur, Pune, and Mumbai, the company's facilities span a total area of 1064.42 sq. mtr.

 

Trust Fintech Limited IPO Overview

Trust Fintech Limited IPO date is slated to be open for subscription from March 26, 2024, to March 28, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Trust Fintech Limited IPO price is fixed in the range of at Rs.95 to Rs.101 per share. 

The total issue size of this IPO amounts to Rs.63.45 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non instituional investors.

 

 

Company Financial

Compared to the previous financial years, Trust Fintech Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased while the total borrowing decreased.

(Amount in Lakhs)

Period

30 Sep 2023

31 Mar 2023

31 Mar 2022

Total Assets 

3,989.43

3,118.89

1,958.72

Total Revenue

1,883.13

2,270.19

1,800.00

PAT

727.95

402.21

133.66

Net worth

3,446.55

2,718.60

1,516.39

Reserve & Surplus 

2,928.06

2,200.11

997.90

Total Borrowings

-34.32

-3.80

118.69


Product Wise Revenue Breakup

(Amount in lakhs)

Segment

September 30, 2023

March 31, 2023

March 31, 2022

TrustBankCBS AMC

487.89

441.84

359.25

TrustBankCBS One time

460.93

753.61

370.93

TrustBankCBS Rental

386.46

672.95

712.02

Export TrustBankCBS

429.30

211.57

134.13

Addon AMC 

45.88

96.08

103.63

SAB B1

31.83

9.36

11.98

Soft GST

31.02

65.60

66.31

LOS one time

6.80

0.00

1.14

MicroFinS

1.18

2.89

1.33

Export MicroFinS

0.85

0.45

2.53

Total

1,882.14

2,254.34

1,763.25

 

The Objective of the Issue

The company plans to use the net fresh issue proceeds for the following purposes:

1) Setting up an additional development facility, including the installation of fit-outs and interior design works in Nagpur, Maharashtra.

2) Investing in procuring hardware and upgrading IT infrastructure.

3) Funding expenses related to enhancing, maintaining, and upgrading existing products.

4) Meeting global and domestic business development, sales, and marketing expenses for the company.

5) Covering general corporate expenses.

 

 

 

Peers of Trust Fintech Limited IPO

Name of Company

Face Value (Rs)

EPS (Rs)

P/E Ratio

Trust Fintech Limited

10

14.04

-

Network People Services Technologies Limited

10

15.72

17.18*

Veefin Solutions Limited

10

0.17

220.95*

*P/E calculation based on annualized EPS reported in Sept 23 financials and closing market price prevailing for Veefin Solutions Limited and Network People Services Technologies Limited on result declaration date i.e. 6 November 2023 and 20th Oct 2023 respectively

 

Evaluation

The IPO is priced within the range of Rs.95 to Rs.101 per share.

Evaluation of P/E Ratio

  • Considering the FY23 EPS of Rs 2.29 from the last year, the resulting P/E ratio is 44.05x.

  • Taking into account the weighted EPS of Rs 5.44 for the last three years, the P/E ratio amounts to 18.56x.

Comparative Analysis with Listed Peers

  • The industry's average P/E is 350.68x.

 

As a result, the IPO price range, with a P/E ratio ranging from 44.05x to 18.56x, seems fully priced to the industry average of 350.68x.

 

IPO's Strengths 

  • The company offers comprehensive solutions in secure Core Banking Solutions, ERP Implementation, and Customized Software Solutions Development.

  • It maintains strong and enduring customer relationships.

  • It holds government empanelments.

  • The company prioritizes quality assurance and holds quality certifications.

  • The experienced promoters and senior management team possess deep industry expertise and a successful track record.

  • The company focuses on expanding its business through intellectual property capabilities.

  • Pricing details are carefully discussed and agreed upon with clients before starting a project.

  • It boasts a prestigious clientele.

 

IPO's Weaknesses 

  • A significant portion of the company's revenues relies on its Core Banking software, TrustBankCBS.

  • The majority of domestic sales over the last 3 years and the current period are concentrated in the top 2 states. Any adverse impact in these states could negatively affect the business.

  • The company has yet to place orders totaling Rs. 430.32 for hardware, servers, Microsoft licenses, antivirus software, computers, networking accessories, UPS, generators, and legal software to support product development and its proposed facility at Mihan SEZ, Nagpur.

  • International operations expose the company to complex management, legal, tax, and economic risks, which could adversely affect its business.

  • The company faces competition from both onshore and offshore providers of Core Banking Software and ERP solutions.

 

IPO GMP Today

The Latest GMP of Trust Fintech Limited is Rs.45.

 

 

 

Trust Fintech Limited IPO timetable (Tentative)

Trust Fintech Limited IPO is scheduled from March 26 to March 28, 2024, with allotment on April 2, refund initiation on April 3, and listing on April 4, 2024.

Events 

Date

IPO Opening Date

March 26, 2024

IPO Closing Date

March 28, 2024

IPO Allotment Date 

April 2, 2024

Refund initiation 

April 3, 2024

IPO Listing Date

April 4, 2024

 

Trust Fintech Limited IPO Details

Trust Fintech Limited IPO, with a face value of Rs.10 per share, opens on March 26 and closes on March 28, 2024, offering 6,282,000 shares at Rs.95 to Rs.101 per share, with a lot size of 1200 shares, aiming to raise Rs.63.45 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date 

March 26, 2024 to March 28, 2024

Face value 

Rs.10 per share

Issue Price

Rs.95 to Rs.101 per share

Lot Size

1200 Shares

Price of 1 lot

Rs.121,200

Issue Size

6,282,000 Shares (aggregating up to Rs.63.45 Cr)

Fresh issue 

6,282,000 Shares (aggregating up to Rs.63.45 Cr)

Listing at

NSE SME

Issue Type 

Book Built Issue IPO

Registrar 

Bigshare Services Pvt Ltd 

 

Trust Fintech Limited IPO Lot Details 

For Trust Fintech Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.121,200 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.242,400.

Minimum Lot Investment (Retail) 

1 Lot

Maximum Lot Investment (Retail) 

1 Lot

Minimum Lot Investment (HNI) 

2 Lot

 

 

 

Trust Fintech Limited IPO Reservation

Institutional share Portion

50%

Non-institutional share Portion

15%

Retail share Portion

35%

 

Promoters and Management of Trust Fintech Limited

  • Mr. Hemant Padmanabh Chafale

  • Mr. Sanjay Padmanabh Chafale

  • Mr. Heramb Ramkrishna Damle

  • Mr. Anand Shankar Kane

  • Mr. Mandar Kishor Deo.

Pre-issue Promoter shareholding

93.51%

Post-issue Promoter shareholding

68.85%

 

Trust Fintech Limited IPO Lead Managers

  • Corporate Capitalventures Pvt Ltd 

 

Dividend Policy

The company has not paid any dividends in the past financial years, and future dividend payments will depend on the financial performance of the company.

 

 

 

Conclusion

Trust Fintech Limited presents a promising opportunity for investors to participate in its upcoming IPO. With a growing business and a solid customer base, the company's financial performance is on the rise. Investors looking to capitalize on this opportunity are advised to conduct thorough research before applying for the issue to achieve optimal results.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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Frequently Asked Questions

+

The IPO is scheduled to open for subscription on March 26, 2024.

 

+

The issue price for Trust Fintech Limited IPO is set in the range of ₹95 to ₹101 per share.

 

+

The total issue size of the IPO is Rs.63.45 Cr, with 35% reserved for retail investors.

 

+

The IPO is set to close on March 28, 2024.

 

+

The net proceeds from the IPO will be allocated for various purposes. These include setting up an additional development facility in Nagpur, Maharashtra, along with the installation of fit-outs and interior design works. Additionally, funds will be directed towards procuring hardware and upgrading IT infrastructure. Expenditure related to enhancing, maintaining, and upgrading existing products will also be funded. Furthermore, the proceeds will be utilized to meet global and domestic business development, sales, and marketing expenses, as well as general corporate expenses.

 



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