Turtlemint Fintech Solutions IPO Day 3: Should you subscribe as issue ends today? Check GMP, review, other key details

Turtlemint Fintech Solutions IPO: The initial public offering (IPO) of insurance distribution platform Turtlemint Fintech Solutions Ltd has entered its third and the last day of bidding process, and has generated muted response from investors so far.

The mainboard IPO opened for public subscription on June 19, Friday, and will close today, June 23, Tuesday. Turtlemint Fintech Solutions IPO allotment date is likely June 24, Wednesday, while the IPO listing date is June 29, Monday. Turtlemint Fintech Solutions shares will be listed on both the stock exchanges, BSE and NSE.

Turtlemint Fintech Solutions IPO price band is set at ₹144 to ₹152 per share, and the IPO lot size is 98 shares. The minimum investment amount required by an individual investor is ₹14,896.

At the upper-end of the price band, the company aims to raise ₹882.67 crore from the book-building issue, which is a combination of fresh issue of 4.35 crore equity shares worth ₹660.72 crore, and an offer-for-sale (OFS) component of 1.46 crore equity shares amounting to ₹221.95 crore.

ICICI Securities Ltd. is the book running lead manager and Kfin Technologies Ltd. is the Turtlemint Fintech Solutions IPO registrar.

Turtlemint Fintech IPO has been subscribed 52% in total so far till 10:03 AM on June 23, the third and the last day of the bidding process.

The public issue is booked 63% in the Retail Individual Investors category, and 5% in the Non-Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIB) category received 73% subscription so far.

Turtlemint Fintech Solutions shares are commanding muted grey market premium (GMP) ahead of the share listing. According to websites tracking the grey market, Turtlemint Fintech IPO GMP today is ₹2 per share. This indicates that in the grey market, Turtlemint Fintech Solutions shares are trading higher by ₹2 apiece than their IPO price.

Turtlemint Fintech Solutions IPO GMP today signals that the estimated listing price of the stock would be ₹154 apiece, which is at a premium of 1.32% to the issue price of ₹152 per share.

Turtlemint Fintech Solutions remains loss-making across all reported profit and loss levels, making the Price-to-Revenue (P/R) ratio the most relevant valuation metric for assessing the IPO.

At the upper end of the price band of ₹152 per share, the IPO is valued at 6.4x FY25 proforma revenue, which is expected to moderate to 3.8x based on DRChoksey FinServ’s FY28 estimated revenue of ₹1,166 crore.

The company’s only listed Indian peer, PB Fintech Ltd., currently trades at 15.3x FY25 trailing Price-to-Revenue, commands a market capitalisation of ₹76,076 crore, is profitable, nearly seven times larger in scale, and benefits from a more diversified product mix.

“At 6.4x trailing revenue, Turtlemint is being offered at a 58% discount to PB Fintech, providing investors an attractive entry point. At the IPO price band of ₹144-152, the company is expected to list at a market capitalisation of ₹4,275-4,476 crore. Based on our FY28 estimates of revenue of ₹1,166 crore, PAT of ₹115 crore and EPS of ₹3.91, the stock is valued at 3.8x forward Price-to-Revenue and 38.9x forward P/E at ₹152. We recommend subscribing to the issue for listing gains,” DRChoksey FinServ said.

According to the brokerage, the valuation discount to PB Fintech and the lack of any other listed play on India’s PoSP-led insurance distribution opportunity are likely to support strong investor demand at the time of listing. However, the long-term case requires two consecutive quarters of declining partner acquisition cost ratios and crosssell revenue meaningfully above the current 1-2% of consolidated revenue before the FY28E profitability assumptions become defensible.

Meanwhile, SMIFS Ltd. has also recommended a ‘Subscribe’ rating on the IPO from a long-term perspective, driven by PoSP network expansion, rising insurance penetration, improving advisor productivity, financial product cross-selling, AI-led scalability, deeper insurer partnerships and regulatory growth opportunities.