Trust Fintech
Book Building issueSME₹63.45 Cr issue
+41.83%
Listing gain over issue price
Issue size
₹63.45 Cr
1 lot at cut-off
₹1,21,200
Lot size
1,200shares
Open
26 Mar 2024
Close
28 Mar 2024
Allotment
02 Apr 2024
Listing
04 Apr 2024
Listing performance
Issue price
₹101
Listed at
₹143.25
Listing-day close
₹150.40
Latest price
₹23.35
Close on 23 Oct 2026
Listing gain
+41.83%
Return since issue
-76.88%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Mar 2024 – 28 Mar 2024
- Listing date
- 04 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹101 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹63.45 Cr
- Market cap at offer price
- ₹241 Cr
- Promoter holding
- 93.51% → 68.85% pre-issue → post-issue
- ISIN
- INE0SWN01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Corporate Capitalventures Pvt.Ltd.
- Registered office
- Plot No.11/4, I.T.Park, Gayatri Nagar Parsodi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,88,000 | — | — |
| Market maker | 3,18,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹101
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,21,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,42,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,69,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,90,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
17,88,000
Anchor portion
₹18.06 Cr
at ₹101 per share
Valuation and performance
Valuation at offer price
₹101 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.29 | 6.11 |
| P/E (×) | 44.10 | 16.53 |
| Price to book (×) | 1.98 | — |
| Market cap | — | ₹241 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 27.51%
- ROCE
- 28.54%
- PAT margin
- 38.66%
- NAV per share
- ₹51.04
- Price to book
- 1.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Trust Fintech
Trust Fintech Limited (formerly Trust Systems and Software (India) Limited) was incorporated on December 15, 1998, and converted to a public limited company in September 2023. Based in Nagpur, Maharashtra, the company operates as a specialized software provider for banking, financial services, and insurance (BFSI) sectors. It has developed 10+ banking-related products including TrustBankCBS core banking software, MicroFinS for smaller cooperatives, loan origination systems, GST compliance software, and various ancillary solutions. The company generates revenue through software implementation and deployment, both on-premises and via SaaS models, maintaining ISO 27001:2013, ISO 9001:2015, and CMMI Level 5 certifications. With 25+ years of operational history and 250+ employees, it serves customers across 15+ Indian states and 10+ countries including USA, Canada, Nepal, Ghana, Nigeria, and Tanzania.
Company Analysis
from RHPTrust Fintech Limited is a SaaS-focused fintech company providing core banking software, IT solutions, ERP implementation, and customized software development for the BFSI sector across India and 10+ countries.
Trust Fintech Limited (formerly Trust Systems and Software (India) Limited) was incorporated on December 15, 1998, and converted to a public limited company in September 2023. Based in Nagpur, Maharashtra, the company operates as a specialized software provider for banking, financial services, and insurance (BFSI) sectors. It has developed 10+ banking-related products including TrustBankCBS core banking software, MicroFinS for smaller cooperatives, loan origination systems, GST compliance software, and various ancillary solutions. The company generates revenue through software implementation and deployment, both on-premises and via SaaS models, maintaining ISO 27001:2013, ISO 9001:2015, and CMMI Level 5 certifications. With 25+ years of operational history and 250+ employees, it serves customers across 15+ Indian states and 10+ countries including USA, Canada, Nepal, Ghana, Nigeria, and Tanzania.
Banking, Financial Services and Insurance (BFSI)Information TechnologySoftware as a Service (SaaS)Enterprise Resource Planning (ERP)Fintech
Objects of the Issue
- To set up additional Development facility, instalments of fit outs and interior design works in Nagpur, Maharashtra ₹1,518.63 Lakhs p.21
- Investment in Procuring Hardware and upgrading IT infra ₹300.00 Lakhs p.21
- Funding of expenditure related to enhancement and upgrading existing product ₹1,500.40 Lakhs p.21
- To meet out the Global & Domestic Business Development, sales and marketing expenses for the company ₹902.60 Lakhs p.21
- General Corporate Purposes Not exceeding 25% of the gross proceeds of the Issue p.21
- To Setup additional Development facility, instalment of fit outs and interior design works in Nagpur, Maharashtra at Mihan SEZ ₹ 1,518.63 Lakhs (from Net Proceeds); Total requirement ₹ 2,158.25 Lakhs p.81
- Investment in procuring hardware and upgrading IT infra ₹ 300.00 Lakhs (from Net Proceeds); Total requirement ₹ 486.57 Lakhs p.81
- Funding of expenditure related to enhancement, maintenance and upgrading existing Product ₹ 1,500.40 Lakhs (from Net Proceeds); Total requirement ₹ 1,767.60 Lakhs p.81
- To meet out the Global & Domestic Business Development, Sales and Marketing expenses for the company ₹ 902.60 Lakhs p.81
- General Corporate Expenses [●] (not exceeding 25% of Gross Proceeds of the Issue) p.81
- Funding capex for development of new facility at Mihan SEZ, Nagpur to accommodate additional personnel for software development p.171
- Funding product development capex for customization of TrustBankCBS for NBFCs ₹160.30 Lakhs total (₹39 Lakhs already invested) p.170
- Funding for strengthening global presence in US and North America through marketing and sales expansion p.170
- General corporate purposes and working capital requirements
- Not stated in this part of the document
- Funding capex for Mihan Special Economic Zone facility p.280
Issue Structure
- Total Issue
- 62,82,000 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- 62,82,000 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹95 to ₹101 per Equity Share
- Lot Size
- 1200 Equity Shares (Bid Lot) and in multiples of 1200 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through implementation and deployment of core banking software (TrustBankCBS and MicroFinS) offered both on-premises with customized infrastructure and as Software-as-a-Service (SaaS) models on rental basis. Additional revenue comes from IT solutions, ERP implementation, customized software development, SAP B1 services (implementation, support, add-on development), and offshore IT services for BFSI clients.
Business Segments
Web-based core banking software serving medium to large banks and financial institutions, available both on-premises with customized infrastructure and as Software-as-a-Service (SaaS) model
Loan Origination software, GST compliance software, Financial Accounting & Billing Software, GST Suvidha provider, SAP B1 Services, Statutory Report Generation modules, ATM Reconciliation, Anti-Money Laundering, Agency Banking, Mobile Banking solutions
Provides core banking solutions for banks, cooperative banks, and financial institutions, with products such as TrustbankCBS serving commercial banks, large private banks, small finance banks, payment banks, cooperative banks and NBFCs
Provides loan origination software (TrustLOS) for banks and financial institutions to process loan applications and manage the loan lifecycle
Provides SoftGST product which is currently provided on SAAS platform to all GST registered entities including Banks for GST compliance reporting and return filing
Provides ERP implementation, customized software solutions development, SAP B1 services for implementation and support, and offshore IT services for the BFSI sector
Annual Maintenance Charges for Core Banking Software
One-time implementation and deployment charges for Core Banking Software license
SaaS/rental model for Core Banking Software with hosting infrastructure
Export of TrustBankCBS Core Banking Software to international markets
Annual Maintenance Charges for add-on modules
SAP Business One implementation and services
GST Compliance Software for BFSI and Enterprises
One-time implementation of Loan Origination System
Cloud-based Core Banking Solution for SACCOS, Credit Unions, and Microfinance Institutions
Export of MicroFinS cloud-based banking solution
Web-based core banking solution available on-premises with customized infrastructure or as a SaaS model. Serves medium to large banks and financial institutions. Flexible and configurable to incorporate RBI compliance requirements and regulatory changes.
Banking solution serving the needs of small and growing co-operative societies, SACCOS and similar banking institutions.
SaaS-based loan origination system launched in 2021 for banks.
GST compliance software specially designed for banks for GST compliances.
Implementation, support, and add-on development services for SAP B1 ERP solutions.
IT Solutions, ERP Implementation and Customized Software Solutions Development.
Web-based software for medium to large banks and financial institutions, available on-premises or as SaaS model, includes RBI compliance and configurable architecture
Core banking software serving needs of small and growing cooperative societies, SACCOS and similar banking institutions
GST compliance software, Financial Accounting & Billing Software, GST Suvidha provider, SAP B1 Services (Implementation, Support and Add-on Development), statutory report generation modules, ATM reconciliation, anti-money laundering, agency banking, and mobile banking solutions
SWOT Analysis
Strengths
- • Established banking software company with 25+ years of operational excellence(p.19)
- • Multiple quality certifications demonstrating security and reliability(p.19)
- • Diversified product portfolio addressing multiple BFSI segments(p.19)
- • Strong international presence with global customer base(p.20)
- • Flexible and configurable software architecture enabling customization(p.19)
- • Zero debt capital structure(p.117)
- • Strong profitability and return metrics(p.117)
- • Established 25+ year track record in BFSI sector(p.140)
- • Comprehensive product portfolio spanning core banking, loan origination, GST compliance and ERP(p.139)
- • Global footprint with presence in 10+ countries(p.140)
- • Multiple quality certifications including ISO 27001, ISO 9001, CMMI Level 5 and CERT-IN VAPT testing(p.140)
- • Government empanelments validating vendor credibility(p.167)
- • High customer retention with repeat business from existing customers(p.167)
- • 25 years of established market presence in banking software(p.256)
- • Diversified product portfolio serving BFSI sector(p.256)
- • Global deployment capability with presence in multiple countries(p.256)
- • RBI-compliant, configurable architecture enabling regulatory adaptability(p.256)
- • Multiple deployment models (on-premises and SaaS) providing customer flexibility(p.256)
- • Significant recent revenue growth and profitability improvement(p.262)
- • Improved operational efficiency through development of migration tools(p.262)
Weaknesses
- • Heavy dependence on single flagship product (TrustBankCBS) for revenue(p.29)
- • Extreme concentration of revenue among top 10 clients(p.30)
- • Geographic concentration of domestic sales in only two states(p.30)
- • Heavy reliance on limited supplier base without long-term contracts(p.34)
- • Unregistered intellectual property including brand names and logo(p.29)
- • Employee benefits expense represents 60%+ of total expenses(p.33)
- • Missing or incomplete historical secretarial records(p.31)
- • History of compliance and regulatory filing delays(p.33)
- • Contingent GST liabilities from past periods(p.38)
- • Proposed significant capital expenditure yet to be committed(p.32)
- • High concentration in top customers with top 10 representing 80% of revenue(p.173)
- • Declining revenue trend from Fiscal 2021 to September 2023(p.141)
- • Current office space already over-utilized and lacks capacity(p.140)
- • Dependent on two major customers representing significant revenue concentration(p.173)
- • Heavy reliance on single sales/support partner in USA(p.173)
- • Significant dependence on a limited number of customers(p.265)
- • Current office space fully utilized with limited expansion capacity(p.256)
- • Dependence on skilled personnel retention(p.257)
- • Outstanding tax demands from Income Tax Department(p.269)
- • GST compliance dispute with significant financial exposure(p.269)
Opportunities
- • Rapid growth in global core banking software market projected to reach $47.37 billion by 2030(p.20)
- • Increasing cloud adoption in BFSI sector expected to double from 26% to 56%(p.20)
- • Indian IT industry expected to reach $100 billion by 2025 and $350 billion by 2026(p.20)
- • Business development expansion into North America and South America markets(p.37)
- • Capacity expansion through new development facility at Mihan SEZ, Nagpur(p.37)
- • Product enhancement and feature development strategy(p.37)
- • Mandatory CBS implementation by NBFCs presents significant market opportunity(p.170)
- • Global IT market growing at 7.9% CAGR with projected growth to USD 11,995.97 billion by 2027(p.130)
- • Core Banking Software market growing at 18.4% CAGR with projected market size of USD 47.37 billion by 2030(p.130)
- • Indian IT industry expected to reach USD 19.93 billion by 2025(p.134)
- • Expanding global presence in US and North America markets(p.170)
- • India's economic growth and digital transformation drive IT spending growth(p.137)
- • Establishment of new Mihan SEZ facility to support workforce expansion(p.171)
- • Expansion of global market presence with international demand(p.262)
- • Planned establishment in Special Economic Zone for capacity expansion(p.280)
- • Post-COVID recovery driving increased banking software demand(p.263)
- • RBI regulatory relaxations creating new business opportunities(p.263)
- • Development of new modules and product versions to address market needs(p.262)
Threats
- • Intense competition from onshore and offshore CBS and ERP providers(p.35)
- • Sector concentration risk - 100% revenue dependent on BFSI industry(p.33)
- • Foreign exchange volatility from significant export revenues(p.45)
- • Regulatory changes in banking and RBI compliance requirements(p.33)
- • Cybersecurity threats and data breach risks(p.29)
- • COVID-19 pandemic and future health emergencies impact(p.42)
- • Talent acquisition and retention challenges in IT sector(p.33)
- • Political instability and economic policy changes in India(p.46)
- • Natural calamities and extreme weather events(p.47)
- • GST and tax policy changes affecting operations and costs(p.46)
- • Global economic slowdown and monetary tightening reducing IT spending(p.123)
- • Indian economic growth projected to moderate to 6% in FY 2023-24 from 7.2% in FY 2022-23(p.127)
- • Intense competition in global IT services market with concentration among top players(p.130)
- • Information security and privacy concerns pose threat to CBS market growth(p.131)
- • Dependence on RBI regulatory compliance requirements which may change(p.139)
- • Banking sector vulnerabilities including asset quality deterioration risk(p.129)
- • Shortage of skilled IT workforce creating cost and delivery pressures(p.132)
- • Rapid technological change requiring continuous product upgradation(p.257)
- • Regulatory changes affecting banking and IT sectors(p.257)
- • Exchange rate fluctuations impacting profit margins(p.257)
- • Macroeconomic volatility affecting financial sector(p.257)
- • Competition from existing and potential market competitors(p.265)
- • Business dependence on country's economic conditions(p.265)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hemant Padmanabh Chafale | Promoter | 64.21% | 47.28% |
| Mr. Sanjay Padmanabh Chafale | Promoter | 12.04% | 8.86% |
| Mr. Heramb Ramkrishna Damle | Promoter | 6.52% | 4.80% |
| Mr. Anand Shankar Kane | Promoter | 5.47% | 4.03% |
| Mr. Mandar Kishor Deo | Promoter | 4.74% | 3.49% |
| Hemant Padmanabh Chafale | Promoter | 64.21% | 47.28% |
| Sanjay Padmanabh Chafale | Promoter | 12.04% | 8.86% |
| Heramb Ramkrishna Damle | Promoter | 6.52% | 4.80% |
| Anand Shankar Kane | Promoter | 5.47% | 4.03% |
| Mandar Kishor Deo | Promoter | 4.74% | 3.49% |
| Jay Hemant Chafale | Promoter Group | 0.18% | 0.13% |
| Anagha Damle | Promoter Group | 0.25% | 0.18% |
| Neha Kane | Promoter Group | 0.10% | 0.08% |
| Hemant Chafale | Promoter | — | — |
| Heramb Ramkrishna | Promoter | — | — |
| Mandar Kishor Deo | Promoter | — | — |
| Hemant Padmanabh Chafale | Promoter/Managing Director | 67.89% | — |
| Sanjay Padmanabh Chafale | Promoter & Advisor | 12.73% | — |
| Heramb Ramkrishna Damle | Promoter/Whole Time Director | 6.90% | — |
| Mandar Kishor Deo | Promoter/Whole Time Director | 5.01% | — |
| Anand Shankar Kane | Promoter/Executive Director & CFO | 5.78% | — |
| Hemant Padmanabh Chafale | Promoter/Managing Director | — | — |
| Heramb Ramkrishna Damle | Promoter/Whole Time Director | — | — |
| Mandar Kishor Deo | Promoter/Whole Time Director | — | — |
Leadership
Ms. Deshana Keval Joshi · Company Secretary & Compliance Officer
Mr. Anand Shankar Kane · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Trust Fintech IPO FAQs
What is the lot size of Trust Fintech IPO?
The minimum lot size of Trust Fintech IPO is 1,200 shares. One lot costs ₹1,21,200 at the cut-off price.
When does Trust Fintech IPO open and close?
Trust Fintech IPO opened for subscription on 26 Mar 2024 and closed on 28 Mar 2024.
What is the listing date of Trust Fintech IPO?
Trust Fintech IPO listed on 04 Apr 2024.