The shares of Turtlemint Fintech Solutions listed in the dalal street today, June 29. The insurance distribution and fintech platform was listed on both the BSE and NSE.
Turtlemint Fintech Solutions began its stock market journey on a weak note on Monday. The shares were listed below the IPO price on both the NSE and the BSE. They opened at Rs 134.90 on the NSE, an 11.25% discount to the issue price of Rs 152, while on the BSE they debuted at Rs 136.20, down 10.39%.
With the shares now trading today, here’s a closer look at the IPO, subscription response and what investors should keep an eye on.
A muted response from investors
Turtlemint’s Rs 883 crore IPO received an overall subscription of 1.20 times during the bidding period.
Among different investor categories, qualified institutional buyers (QIBs) showed the strongest interest, subscribing their reserved portion 1.59 times. Retail investors subscribed their quota 1.07 times, while the non-institutional investor (NII) category remained relatively weak with subscriptions of only 0.52 times.
Before the issue opened for public bidding, the company had already raised Rs 397.20 crore from anchor investors, providing early institutional participation in the offering.
The IPO was priced at Rs 152 per share. It consisted of a fresh issue worth Rs 660.72 crore along with an offer for sale (OFS) of approximately Rs 221.95 crore by existing shareholders.
Where will the IPO money be used?
Unlike an offer for sale, where selling shareholders receive the proceeds, the funds raised through the fresh issue will go directly to the company for expansion and business development.
According to the prospectus, Turtlemint plans to use a significant portion of the proceeds to strengthen its technology infrastructure. This will be by investing in cloud computing and server capabilities.
Furthermore, thhe company also intends to hire and retain employees for its technology and product development teams while increasing spending on marketing and brand-building activities.
Part of the proceeds will also be used for lease-related payments for offices occupied by the company and its wholly-owned subsidiary, TIB.
In addition, Turtlemint plans to infuse capital into TIB to meet working capital requirements and also keep funds available for strategic acquisitions that could support future growth.
What does Turtlemint do?
Turtlemint operates a technology-driven insurance distribution platform. The company connects insurance agents, financial advisors and customers through digital tools.
Its platform enables insurance advisors to sell, manage and service insurance products digitally.
The company has built its business around digitising insurance distribution. This is an area that has witnessed increasing adoption as more financial services move online.
