Trust Fintech Limited 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 IPO is a book-built issue of Rs 63.45 crores. The IPO comprises an entirely fresh issue of 62.82 lakh shares.
IPO opens
Mar 26, 2024
IPO Closes
Mar 28, 2024
IPO Size (Rs.)
₹63.45 Cr
IPO Size (shares)
6,282,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹95 to ₹101 per share
Minimum Lot
1200 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Corporate Capitalventure
Registrar
Bigshare Services
Market maker
Ss Corporate Securities.
About Trust Fintech:
Trust Fintech Limited is a Nagpur based SaaS Product focused company which has carved a niche 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 evolved in the last 25 years and adapted to the technological and market shifts to reach the current business model and product version. Trust Fintech is consistently expanding its business footprints in India and Globally by adapting to ever-changing regulatory compliances for the global BFSI sector.
They have invested in developing more than 10+ (ten) banking related products for Commercial and Cooperative Banks and Financial Institutions, which comprise Core Banking Software, Loan Origination software, GST compliance software, Financial Accounting & Billing Software, GST Suvidha provider, SAP B1 Services (for Implementation, Support and Add-on Development), Various add-on modules for Statutory Report Generation, ATM Reconciliation, Anti-Money Laundering, Agency Banking, Mobile Banking leveraging end to end solutions to address the evolving needs of banking Solutions.
Our company is majorly involved in the Implementation, and deployment of Core banking Software i.e. TrustBankCBS or MicroFinS. TrustBankCBS mainly serves the needs of medium to large banks & financial institutions and MicroFinS serves the needs of Small & growing Co-operative Societies, SACCOS & similar banking institutions. Our flagship product, TrustBankCBS, is a web-based software. It is available “on-premises with infrastructure” i.e. it offers the flexibility to the customer to deploy TrustBankCBS on their own premises with customized infrastructure. Alternatively, it is also available as off-the-shelf banking software solution in a ‘Software as a Service’ (SaaS) model.
They currently operates through its offices located in Nagpur, Pune, and Mumbai spread across total area of 1064.42 sq. mtr. accommodating a workforce of over 250+ employees.
The promoters of Company are Mr. Hemant Padmanabh Chafale, Mr. Sanjay Padmanabh Chafale, Mr. Heramb Ramkrishna Damle, Mr. Ananad Shankar Kane and Mr. Mandar Kishor Deo.
Financials: Trust Fintech IPO
Particulars (₹ in Lacs.)
2023 (06)
2023 (12)
2022 (12)
2021 (12)
Revenue (total income)
1,883.13
2,270.19
1,800.00
2,417.94
EBITDA (In Lakhs)
₹ 996.33
₹ 594.31
₹ 227.29
₹ 311.24
EBITDA margin (%)
52.91%
26.18%
12.63%
12.87%
Profit after Tax
727.95
402.21
133.66
219.66
PAT margin (%)
38.66%
17.72%
7.43%
9.08%
Share Capital
518.49
518.49
518.49
518.49
Net Worth
3,446.55
2,718.60
1,516.39
1,382.73
Earnings per share
14.04
7.76
2.58
4.21
Net Asset Value
51.04
37
29.24
26.66
Total Borrowing
– Long Term
0
0
135.3
4.03
Post issue Share Capital
2382
FV
10.0
IPO price
101
EPS Fy23
1.7
PE Fy23
59.8
EPS Fy24 (annualized)
6.1
PE Fy24 (annualized)
16.5
Market cap in Lacs
25,249
Market cap / Sales
11.12
Anchors: Trust Fintech IPO
Trust Fintech IPO: Salient Points
Company is majorly involved in the Implementation, and deployment of Core banking Software i.e TrustBankCBS or MicroFinS. TrustBankCBS mainly serves the needs of medium to large banks & financial institutions and MicroFinS serves the needs of Small & growing Co-operative Societies, SACCOS & similar banking institutions.
The Net Proceeds are proposed to be utilized in the manner set forth below for the objectives of the IPO:
S. N.
Particulars
Amount (In ₹ Lakh)
1.
To set up additional Development facility, instalments of fit outs and interior design works in Nagpur, Maharashtra
1518.63
2.
Investment in Procuring Hardware and upgrading IT infra
300.00
3.
Funding of expenditure related to enhancement and upgrading existing product
1500.40
4.
To meet out the Global & Domestic Business Development, sales and marketing expenses for the company
902.60
5.
General Corporate Purposes*
[●]
CMMI level 5 Certified company
Earlier they were empaneled by NeGD as agency for Integration of different Applications with e- Governance system for Digi-locker system.
Last year they received order from USA for implementation of CBS in credit union
Top 10 customers in terms of amount during the last 3 years and for the period ended on September 30, 2023 are as under:
Sr No.
Name / Rs. Lacs
Sept 30,2023
% of the Total Revenue
1.
Internet Soft (Sales and support partner at USA for TrustBankCBS)
372.74
19.80%
2.
The Gadchiroli DCC Bank LTD
248.78
13.22%
3.
The Chandrapur Dist. Central Co-Op Bank Ltd
235.19
12.50%
4.
Nabfins Ltd
233.46
12.40%
5.
MUMBAI DISTRICT CENTRAL CO-OP BANK LTD
171.13
9.09%
6.
Daus Info space Pvt ltd (Sales and support partner in India for TrustBankCBS)
113.07
6.01%
7.
The Prathamik Shikshak Sahakari Bank ltd. Kolhapur
35.25
1.87%
8.
Dr. Punjab Rao Deshmukh urban co-op. Bank ltd
34.21
1.82%
9.
The Kendra Para credit co-op. Society ltd.
31.46
1.67%
10.
Osmanabad Janata Sahakari bank Ltd.
31.36
1.67%
Total
1,506.65
80.05%
Peers :
Company
CMP (₹)
Revenue(₹cr)
Net Profit(₹ cr)
NPM %
PE
Macp/sales
Trust Fintech Limited
106
22.7
4.02
17.7%
63(17)
11.0
Network People Services Technologies
1,088
41
7
17.1%
103
20.1
Veefin Solutions Limited
293
14.08
4.28
30.4%
155
4.28
These are not peers in the true sense.
Their flagship product, TrustBankCBS, is a web-based software which is available both on-premises and also as Software as a Service.
Their Core Banking Product (TrustBankCBS) is flexible enough to customize for the Central Bank requirements, by customizing this software, they have served this software in India Shri Lanka, Nepal, California, Gambia, Tanzania, Ghana, Liberia, Nigeria, Zimbabwe, and few more countries.
Currently, they are serving customers in more than 15 States of India and in more than 10 countries including California, Nepal, Gambia, Ghana, Liberia, Nigeria, Sri Lanka, Tanzania, Zimbabwe, Siberia, Central Africa Republic.
Trust Fintech has served a customer base of 200+ BFSI institutions.
Trust Fintech IPO is being offered at a PE of 59x (2023 earnings) and 16.5x ( 2024 annualized earning) .
There has been a big jump in profits in HY24.
I intend to apply in Trust Fintech IPO subject to availability of funds. Iam not fully convinced with its fundamentals and will go with the tide right now.
GMP as reported on social media has been Rs.45.
Corporate Capitalventure is the Lead Manager with a good record. Past issues handled by them include Esconet Technologies, Alpex Solar Limited, Accent Microcell Limited, Rockingdeals Circular Economy, Oriana Power Limite, Crayons Advertising Limited, Droneacharya Aerial Innovations Limited, Annapurna Swadisht Limited, Rajnandini Metal Limited, Swastik Pipe Limited, Uma Exports Limited, Phantom Digital Effects Limited, Nupur Recyclers etc.
SME IPO are much more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
