What you Must know about Trust Fintech IPO?

About Trust Fintech IPO

Incorporated in 1998, Trust Fintech Limited is a software development company specializes in providing ERP Implementation, IT Solutions, Core Banking Software, Customized Software Solutions, Offshore IT services and SAP B1  for the BFSI sector. The company offers 10+ banking products for cooperative, commercial banks and financial institutions. These include  Financial Accounting, Core Banking, GST Compliance, Loan Origination,  Billing, SAP B1 services add on modules for statutory report generation, anti money laundering,  ATM reconciliation, agency banking and mobile banking.

The flagship product of the company TrustBankCB is web based software and is available "on-premises with infrastructure" offering customers the flexibility to deploy TrustBankCBS on their premises with customized infrastructure.

Trust Fintech Limited has provided services in India, Nepal, Sri Lanka, Gambia, California, Tanzania, Nigeria Ghana, Liberia, Zimbabwe and a few more countries. It operates in over 25 countries worldwide and serves a customer base of over 200 in the banking, financial services, and insurance (BFSI) sector, offering core banking solutions. The organization operates through offices in Nagpur, Pune and Mumbai with a total area of 1064.42 sq. meters and more than 250 employees.

Highlights of the Trust Fintech IPO

Here are some of the highlights of the Trust Fintech IPO:

• Trust Fintech IPO will be open from 26 March 2024 to 28 March 2024. Trust Fintech IPO IPO has a face value of ₹10 per equity share and the price band for the Trust Fintech IPO has been fixed  between at ₹95- ₹101 per share.
• Trust Fintech IPO comprises solely a fresh issue component, with no portion allocated for offer for sale (OFS).
• As part of the fresh issue portion of the IPO, Trust Fintech IPO will issue a total of 62.82 lakh shares, at the upper price band of the IPO at ₹101 per share to raise fresh funds of ₹63.65 crores.
• Since Trust Fintech IPO contains no offer for sale component the total IPO size is equivalent to the fresh issue size of the IPO which is ₹63.65 crores.
• The company is promoted by Mr. Hemant Padmanabh Chafale, Mr. Heramb Ramkrishna Damle, Mr. Sanjay Padmanabh Chafale, Mr. Anand Shankar Kane and Mr. Mandar Kishor Deo. Before the listing, promoter holding in the company stands at 93.51%, post the listing promoter equity holding will be diluted to 68.85%.
• The raised funds will be allocated towards setting up an additional development facility and installing fit-outs and interior design in Nagpur, Maharashtra, investing in hardware procurement and upgrading IT infrastructure, funding expenses related to enhancing, maintaining and upgrading existing products, meeting global and domestic business development, sales and marketing expenses and addressing general corporate purposes.
• Corporate Capitalventures Pvt Ltd serves as the book running lead manager for the Trust Fintech IPO IPO, while Bigshare Services Pvt Ltd has been appointed as the registrar for the issue. Ss Corporate Securities will act as the market maker for the Trust Fintech IPO.

Trust Fintech IPO allocation and lot size for investment

For Trust FintechIPO the net offer will be distributed between retail, QIB and NII (HNI) category investors. The allocation breakdown for the overall IPO of Trust Fintech IPO Ltd is mentioned below.

Lot sizes for investing in the Trust Fintech IPO

The minimum lot size for Trust Fintech IPO investment is 1200 shares, equivalent to ₹121,200 (1200 shares x ₹101 per share), which is also the maximum for retail investors to participate in this IPO. For Trust Fintech IPO HNI/NII investors can invest in a minimum of 2 lots, totaling 2,400 shares with a minimum value of ₹2,42,400. Check below the breakdown of lot sizes and amounts for all categories.

Key dates for Trust Fintech IPO

Trust Fintech IPO will open for subscription on Tuesday, 26 March 2024 and close on Thursday, 28 March 2024. The bidding period for the Trust Fintech IPO will be from 26 March 2024, starting at 10:00 AM, until 28 March 2024, closing at 5:00 PM. For the Trust Fintech IPO, the cutoff time for confirming the UPI Mandate is 5:00 PM on the closing day of the IPO, scheduled for March 28, 2024.

Financial highlights of Trust Fintech IPO Ltd

The table below present the key financials of Trust Fintech IPO for the last three completed financial years.

Profit after Tax for Trust Fintech IPO Limited has shown growth over the past three fiscal years. In FY21, the PAT stood at ₹219.66 Lakhs, PAT increased in FY22 to ₹133.66 Lakhs reflecting an improvement in profitability. In the most recent financial year FY23 witnessed a surge in PAT to ₹402.21 Lakhs. Also its total borrowing has decreased in the past three years which is a good sign.

Trust Fintech IPO Vs Peer Comparison

Compared to its competitors, Trust Fintech IPO has a decent EPS of 14.04, whereas its peer Veefin Solutions holds the lowest EPS among its peers standing at 0.17