Trust Fintech Ltd IPO - Review & Fundamental Analysis
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Trust Fintech IPO Review 

Trust Fintech IPO consists of a fresh issue of 62,82,000 shares worth INR 63.45 crores. The company seeks funds or expansion in Nagpur, IT upgrades, product enhancement, sales, and corporate expenses.

Trust Fintech Ltd IPO – Important Dates

Trust Fintech IPO DateMarch 26, 2024 to March 28, 2024
Trust Fintech IPO Listing DateApril 3, 2024
Trust Fintech IPO PriceINR 95 to 101
Trust Fintech IPO Lot Size1200 Shares
Trust Fintech IPO Total Issue SizeINR 63.45 crores
Trust Fintech IPO Basis of AllotmentApril 1,2024
Trust Fintech IPO Initiation of RefundsApril 2,2024
Trust Fintech IPO Credit of Shares to DematApril 2,2024
Trust Fintech IPO Issue TypeBook Built Issue
Trust Fintech IPO Listing AtNSE SME

Trust Fintech Limited IPO – Company Profile 

Trust Fintech, a Nagpur-based SaaS provider, offers Core Banking, ERP, and IT solutions for BFSI sectors. With 25 years of evolution, it expands nationally and globally, navigating regulatory changes while focusing on customized software and offshore services. 

They have developed 10+ banking products, including Core Banking, Loan Origination, and GST compliance software. Adhering to RBI regulations, solutions are configurable for policy changes. Trust Bank CBS serves globally and is customized for central bank requirements in multiple countries.

They plan to enhance existing products: integrate RBI reporting features, customize CBS for North American credit unions, enable loan origination on the ONDC platform, tailor CBS for NBFCs, and expand offerings globally with AI-driven risk management and GST integration. 

Trust Fintech Ltd IPO – Fundamental Analysis 

Trust Fintech Limited’s IPO financials indicate a company with rebounding revenue, impressive profitability growth, and enhanced equity, positioning it as an attractive investment in the fintech sector, despite past revenue volatility and a competitive market landscape.

Revenue Trends:

The company experienced a dip in revenue from ₹2,394.66 lakhs in 2021 to ₹1,763.25 lakhs in 2022 before recovering to ₹2,254.34 lakhs in 2023. This suggests volatility in revenue generation but with a capacity to rebound and grow.

Equity Growth:

Equity has nearly doubled from ₹1,382.73 lakhs in 2021 to ₹2,718.60 lakhs in 2023, reflecting strong investor confidence and potential capital infusion to support expansion.

Profitability:

Profit after tax shows an encouraging trend, with a significant increase to ₹402.21 lakhs in 2023, indicating improved operational efficiency and profitability.

Return on Net Worth (RoNW):

The RoNW shows a positive trajectory, from 15.89% in 2021 to 20.96% in 2023, showcasing the company’s ability to effectively generate profit from its equity base.

Diluted EPS:

The Diluted EPS has significantly increased, from ₹4.24 in 2021 to ₹7.76 in 2023, highlighting the company’s growing earnings power per share.

Asset and Liability Management:

Total assets have nearly doubled, indicating expansion and investment in the company’s operational capacity. The reduction in total liabilities from 2022 to 2023 suggests effective debt management and financial stability.

NAV per Equity Share:

The NAV per equity share has increased from ₹26.66 in 2021 to ₹37.00 in 2023, reflecting the growing intrinsic value of the company’s shares.

Trust Fintech Limited IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)2394.661763.252254.34
Equity (₹ in lakhs)1382.731516.392718.60
Expenses (₹ in lakhs)2123.931621.481729.14
Profit and Loss After Tax (₹ in lakhs)219.66133.66402.21
RoNW (%)15.898.8120.96
Diluted EPS only (₹)4.242.587.76
NAV per Equity Share (₹)26.6629.2437.00
Total Assets (in lakhs)1590.011958.723118.89
Total Liabilities (in lakhs)207.28442.33400.29

Trust Fintech Limited IPO Peer Comparison 

Trust Fintech Limited exhibits a robust RoNW of 20.96% and an EPS of ₹7.76, demonstrating strong profitability. Compared to Network People Services Technologies with a higher RoNW and Veefin Solutions with a significantly lower RoNW and EPS, Trust Fintech shows balanced financial health.

CompanyTotal Income (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Trust Fintech Limited2,270.1910NA7.7620.9637
Network People Services Technologies Limited5329.771051.5015.7230.1859.58
Veefin Solutions Limited585.7810649.850.170.7931.11

Trust Fintech Ltd IPO Objective

The main objective of Trust Fintech Limited is an expansion in Nagpur, IT upgrades, product enhancement, and sales. 

  1. Investment to set up additional development facility, installment of fit-outs, and interior design works in Nagpur, Maharashtra: The company plans to establish a new facility at Mihan SEZ, Nagpur, spanning 8093.71 sq. m. with a 60,000 sq. ft. construction area, to accommodate 1000 employees for software development, capitalizing on tax benefits and strategic advantages. 
  2. Investment in procuring hardware: The company proposes to utilize INR 486.57 lakhs in procuring servers, Microsoft licenses, Antivirus, computers, Networking accessories, UPS, Generators, and Legal software. 
  1. Funding for expenditure related to enhancement and upgrading existing product development: The company plans to utilize INR 1767.60 Lakhs to invest in product development to enhance existing software. Hiring large technical teams with the right skills is essential for managing this initiative. 
  1. To meet its sales and marketing expenses, the company proposes to utilize INR 902.60 lakhs from the offer’s net proceeds to fund its sales and marketing requirements in the fiscal year 2025. Sales and marketing initiatives crucial for fundraising, aimed at acquiring new customers, strengthening current relations, and increasing brand awareness in the BFSI vertical. 
  1. General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goals, including meeting operating expenses, branding, promotion, advertisements, and meeting contingencies. 

Trust Fintech Limited IPO Risks And Challenges 

Trust Fintech risk includes cyber threats, heavy reliance on top BFSI clients, and failure to adapt to changing needs and regulations, which pose significant challenges, potentially impacting business growth, financial results, and reputation despite ISO certifications. 

  • Cyber threats such as phishing, hacking, data theft, and advanced persistent threats pose risks to the business, potentially leading to reputational damage, loss of sensitive data, legal proceedings, and penalties despite obtaining ISO and quality certifications. 
  • The company provides Core Banking Software and IT Solutions to the BFSI sector. The top ten clients contribute a significant portion of the revenue, and the loss of any major client or events affecting them could adversely impact their financial results. 
  • Their success hinges on adapting to changing customer needs, industry standards, and regulatory requirements. Continuous investment in product development is crucial. Failure to meet evolving demands or regulatory changes may hinder sales and customer retention, impacting business growth.

Trust Fintech IPO – Industry & Market Potential 

The global IT market is growing steadily, with major players like IBM, Accenture, and Microsoft dominating. Industry 4.0 solutions from companies like ABB Ltd. and Siemens AG drive digitization trends, offering efficiency and new revenue models through digital twins. 

The global core banking software market is poised for substantial growth, driven by increasing investments in fintech, the adoption of technologies like cloud and AI, and the need for centralized banking activities. Industry projections indicate a significant CAGR of 18.4%. 

The Indian IT sector is a crucial driver of economic growth, contributing 7.4% to GDP in FY22 and projected to reach 10% by 2025. With widespread internet access, India is poised for a continued IT revolution. 

Trust Fintech Limited IPO  – Type of Offer 

Trust Fintech will have a fresh issue of 62,82,000 shares. The company seeks funds or expansion in Nagpur, IT upgrades, product enhancement, sales, and corporate expenses. 

Trust Fintech Ltd IPO Offer Size 

Trust Fintech consists of a fresh issue of 62,82,000 shares worth INR 63.45 crores. The company seeks funds or expansion in Nagpur, IT upgrades, product enhancement, sales, and corporate expenses. 

Trust Fintech Ltd IPO Allotment Structure

Trust Fintech Limited’s IPO allotment structure includes a Retail Individual Investors (RII) category with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 3,18,000 shares for Market Makers.

  • Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 3,18,000 shares for this purpose.

How to apply for a Trust Fintech IPO through Alice Blue?

To apply for the Trust Fintech IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue
  2. Check for IPO Details: Once your account is active, you can check for the Trust Fintech IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Trust Fintech  IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Trust Fintech IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually