Trust Fintech Limited IPO

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Trust Fintech Limited (TFL), based in Nagpur, is a distinguished Software as a Service (SaaS) provider specializing in solutions tailored for the Banking, Financial Services, and Insurance (BFSI) sector. Founded by Mr. Hemant Chafale, Mr. Heramb Ramkrishna, and Mr. Mandar Kishor Deo, the company has built a reputation for delivering secure core banking solutions and cutting-edge technology to facilitate a seamlessly integrated banking and financial ecosystem. Over the past 25 years, TFL has adeptly navigated the evolving technological landscape and market dynamics to refine its business model and product offerings continually.

TFL’s commitment to innovation is evident in its development of over ten banking-related products catering to Commercial and Cooperative Banks and Financial Institutions. This suite includes Core Banking Software, Loan Origination Software, GST Compliance Software, Financial Accounting & Billing Software, and SAP B1 Services, among others. These solutions are designed with a keen focus on compliance with the Reserve Bank of India’s (RBI) regulations, ensuring flexibility and adaptability to policy changes. Trust Fintech’s flagship Core Banking Product, TrustBankCBS, stands out for its customizable architecture, making it suitable for Central Bank requirements across various countries, including India, Sri Lanka, Nepal, and several African nations.

As TFL continues to expand its footprint both in India and internationally, it remains dedicated to adapting to the regulatory changes within the global BFSI sector. This forward-thinking approach ensures that TFL’s offerings are not just compliant but also at the forefront of addressing the dynamic needs of the banking and financial services industry.

Objects of the Trust Fintech Limited IPO:

The company intends to utilize the Net Fresh Issue Proceeds for the following Objects : i. To Setup additional Development facility, instalment of fit outs and interior design works in Nagpur, Maharashtra. ii. Investment in procuring hardware and upgrading IT infra; iii. Funding of expenditure related to enhancement, maintenance and upgrading existing Product; iv. To meet the Global & Domestic Business Development, Sales and Marketing expenses for the company; and v. General Corporate Expenses
DRHP of Trust Fintech Limited IPO
RHP of Trust Fintech Limited IPO

Trust Fintech Limited IPO Details:

Open Date: Mar 26 2024
Close Date: Mar 28 2024
Total Shares: 6,282,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 63.45 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 95 - 101 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 04 2024

Promoters And Management:

Mr. Hemant Padmanabh Chafale, aged 54, is the Founder and Managing Director of the company, holding a Bachelor’s degree in Instrumentation Engineering from 1992. With over three decades of experience, he has developed a profound expertise in Control Systems across various industries, including Chemicals, Petrochemicals, and Steel. His early career saw impactful tenures at Indo Rama Synthetics Ltd, Nagpur, Bombay Dyeing and Manufacturing Co. Ltd., and ESSAR Projects Ltd, Surat. Beyond his corporate achievements, Mr. Chafale actively contributes to the community as a director at Nagpur Nagarik Sahakari Bank and as President of the Vidarbha Vaibhav NGO. His involvement with the TIE Nagpur Chapter further showcases his commitment to entrepreneurship and innovation. Mr. Mandar Kishor Deo, aged 54 years, is the whole-time director & Technical Head in TFL. He is having bachelor degree in science and an Associate Member of Institute of Engineers (AMIE, equivalent to an Engineering degree) plus a Professional Diploma holder in Computer Programming and Applications (PDCPA) from La Salle University, USA. Mr. Mandar is very well versed with designing, development of large systems, ERP core banking, mobility solution and cloud computing across all technology platforms. Before joining Trust, he was working as Freelance consultant. With over 31 years of professional experience, Mr. Mandar has been an integral part of TFL since inception. He is very well qualified to supervise the overall Software Development at Trust Fintech. Mr. Heramb Ramkrishna Damle, aged 47 years, is the whole-time director & Marketing head in the company. He is having Bachelor Degree in Mechanical Engineering from Amravati University and Master of Business Administration from Pune University. Mr. Damle worked for Jubiral Systems in ERP domain for one year before joining Trust Fintech. He is having good understanding about Business needs with BFSI sector focusing on domestic and international sales. With over 23 years of professional experience, Mr. Damle has been an integral part of TFL since inception. Mr. Damle with his technocommercial approach towards software development, has successfully developed new business segments and partner network for Trust Fintech.

Financials of Trust Fintech Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 2,395 1,763 2,254 1,882
Other Income 23 37 16 1
Total Revenue 2,418 1,800 2,270 1,883
Cost of Materials Consumed 947 372 436 176
Changes in inventory -26 0 -175 -150
Employees Benefit Expenses 845 861 1,055 598
Other Expenses 340 340 360 263
EBITDA 311 227 594 996
Depreciation & Amortisation 13 47 49 22
Finance Cost 4 2 4 1
EBIT 298 180 545 974
OPM (%) 12.87% 12.63% 26.18% 52.91%
PBT 294 179 541 973
Tax 74 45 139 245
PAT 220 134 402 728
NPM (%) 9.08% 7.43% 17.72% 38.66%
No.of Shares 238.25 238.25 238.25 238.25
EPS 0.92 0.56 1.68 3.05

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Trust Fintech Limited 23 4 1.68 59.8 101 241
Network People Services Technologies Limited 41 7 3.36 103.0 1,094 2,121
Veefin Solutions Limited 14 4 2.33 162.0 308 695
* All the data is as per FY23.

Lead Manager of Trust Fintech Limited IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Trust Fintech Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Trust Fintech Limited Plot No. 11/4, I.T. Park, k, Gayatri Nagar Parsodi, Nagpur- 440022 Phone: +91 - 9909647348 Email: cs@softtrust.com Website: https://www.softtrust.com/

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