Traxon Tech has reserved most of its IPO for QIBs.
The company was founded in 2013 and is yet to turn a profit.
It provides market intelligence data about private companies.
New Delhi. IPOs are undoubtedly one of the best ways to earn in the stock market. The company offers you its shares at cheap prices and you also buy the shares with the hope that you will earn a bumper after the listing. Investors have also made money from the last few IPOs. However, this is not always the case. If the company’s fundamentals are not strong, the market will not be kind to it. So before investing in any IPO you should get complete information about the financials and business of the company so that you don’t regret later.
Today we will talk about Traxon Technologies IPO. It was open for subscription on Monday and will close by 5 pm on Wednesday. The entire IPO is through an offer for sale and the company is planning to raise Rs 310 crore through it. The IPO price band is Rs 75-80. 75% of the shares are reserved for QIBs. Retail investors have only 10 percent of the shares to invest. Here we will tell you the five most important things about the company so that you can decide whether you want to invest in this IPO or not.
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The company was established in 2013.
Traxon Tech was founded in 2013 and provides market intelligence data on private companies. The company has a large database that allows its clients to track and source companies in India and abroad. Taxon Tech is one of the top 5 companies in this field in the world. The company operates on a Software as a Service (SaaS) based platform.
The company is not yet making a profit. It is still far from profitable. Similar was the situation with Zomato and Paytm. Although Traxon’s revenue is increasing steadily, it is not profitable due to higher expenses.
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Who is the competition?
In comparison, no company is listed on the market yet. However, the company faces stiff competition from Crunchbase, CBINights, Privco and PitchBook.
What’s in the company’s favor?
It is one of the world’s leading providers of private market data and intelligence. It has an expanding and growing customer base. The company has a secure technology platform developed in-house. The company has experienced promoters, board of directors and senior management.
What is the risk?
Traxon uses an open source software. In the future, if someone claims ownership of this software, the company will have to modify its platform. Apart from this, there is also a risk of cyber attack on the company. The company has reported negative cash flows and losses several times. It does not insure its own systems, which could pose a risk to its client IT companies.
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Tags: Business News in Hindi., Investments and returns., IPO, Stock market
First Publication: 11 October 2022, 15:53 IST