Easy Trip Planners IPO opens next week: 10 key things to know2 min read . Updated: 05 Mar 2021, 04:16 PM IST
- Easy Trip Planners IPO is entirely an offer for sale.
- The IPO opens on March 8 and closes on March 10
The IPO of online travel company Easy Trip Planners opens for subscription on March 8th. The company has fixed a price band of ₹186-187 per share for its ₹510-crore initial share-sale. EaseMyTrip.com is operated by Easy Trip Planners Private Ltd. The three-day issue would close on March 10. Founded in 2008, Easy Trip Planners is an online travel agency market with offices across various Indian cities, including Noida, Bengaluru, Mumbai and Hyderabad. Its international offices (as subsidiary companies) are located in Singapore, the UAE and the UK.
Here are 10 things to know to know about Easy Trip Planners IPO:
1) The lot size is 80. KFintech Private Limited is the registrar of Easy Trip Planners IPO.
2) According to brokerages, the share allotment is likely to be finalised on March 16 and Easy Trip Planners shares may list on March 19, 2021.
3) The company's initial public offering is entirely an offer for sale. Easy Trip Planners founders Nishant Pitti and Rikant Pitti, who hold 49.81% and 49.68% stake, respectively, will each sell shares to the tune of ₹255 crore through offer-for-sale mechanism. Post-IPO, promoter holding will come down to 74.90%.
4) The company will not receive any fund from the OFS. The objective of the issue is to get benefit of listing the shares on the stock exchanges, which will further enhance its visibility and brand and also provide liquidity for the existing shareholders.
5) 75% of the net issue shall be allocated on a proportionate basis to qualified institutional buyers, while rest 15% and 10% is reserved for non-institutional bidders and retail investors, respectively.
6) The company's issue is being managed by Axis Capital and JM Financial.
7) "There are no listed peers in domestic market, having similar operating model. At higher price band of Rs. 187, Easy Trip is demanding a P/E multiple of 58.6x (to its restated FY20 EPS of Rs. 3.2)," said Choice Broking, which recommends "subscribe" to the issue.
8) "Even though its financial performance on operating level is inconsistent, considering its market positioning among the key OTAs, we feel that the company has advantages like scalable business model, business growth in excess of the sector, cash generation ability etc. Thus considering the above observations, we assign a “SUBSCRIBE" rating for the issue," the brokerage said.
9) Easy Trip Planners claimed that it was the only profitable online travel agency among the key online travel agencies in India during FY18-FY20 in terms of net profit margin.
10) Easy Trip Planners said it has recovered 70% booking volumes in the third quarter of Fiscal 2021, in terms of segments in comparison to the third quarter of Fiscal 2020.
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