Tracxn Shares Surge 10% After Share Buyback Announcement

SUMMARY

The stock gave up some of the gains to end 7.13% higher at INR 62.18 apiece

Earlier this week, the company’s buyback committee approved a special resolution to buy back 11.42 Lakh equity shares from existing shareholders at INR 70 apiece

The company also announced allotment of 96K equity shares worth INR 55.80 Lakh to employees under its ESOP 2016 scheme yesterday

Shares of Tracxn surged as much as 10% to INR 63.86 during the intraday trading today (July 10) after the company announced a share buyback worth nearly INR 8 Cr.

The stock gave up some of the gains to end 7.13% higher at INR 62.18 apiece. A total of 28.8 Lakh shares changed hands today. The company’s market capitalisation stood at $77.7 Mn (INR 666.03 Cr) at the end of the session.

Earlier this week, the company’s buyback committee approved a special resolution to buy back 11.42 Lakh equity shares from existing shareholders at INR 70 apiece through the tender route. To note, this was a 21% premium from the INR 58.04 closing price of the stock on the date of the approval.

The company’s shareholders approved the buyback proposal through a postal ballot on July 3. The record date for the purpose of determining the eligibility of shareholders for participation in the buyback has been set for July 18.

Notably, the company’s board had approved the buyback of up to 11.42 Lakh equity shares at INR 70 per share, totaling up to INR 7.99 Cr (excluding transaction costs), in May this year.

Meanwhile, the company also announced allotment of 96K equity shares worth INR 55.80 Lakh to employees under its ESOP 2016 scheme yesterday. This follows the 1.34 Lakh ESOP offering under the same programme in March.

While shares of Tracxn are up 8% in the last one month, they have given a negative return of 17.68% on a YTD basis.

Today’s rally in Tracxn shares was contrary to the performance of broader Indian stock market movement today. Sensex and Nifty declined 0.4% each today.

On the financial front, Tracxn slipped into the red in Q4 FY25, with a net loss of INR 7.6 Cr as against a profit of INR 1.4 Cr in the year-ago quarter. Operating revenue rose 3.9% to INR 21.1 Cr from INR 20.3 Cr in Q4 FY24.

Founded in 2013 by Neha Singh and Abhishek Goyal, Tracxn offers a market intelligence platform that provides data and software for the global private markets. Its primary revenue source is subscription fees paid by clients for access to its data platform and research tools. It competes against the likes of PitchBook and Crunchbase.