The Gurugram-based firm plans to sell new shares to raise ₹750 crore, while promoters and shareholders will sell shares worth ₹850 crore through an offer for sale (OFS)
MUMBAI: Le Travenues Technology Ltd, the operator of travel platform Ixigo, on Friday filed draft papers for a ₹1,600 crore initial share sale, joining a slew of companies seeking to exploit a record rally in equity markets.
The Gurugram-based firm plans to sell new shares to raise ₹750 crore, while promoters and shareholders will sell shares worth ₹850 crore through an offer for sale (OFS).
According to the draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi), the OFS comprises the sale of shares worth up to ₹50 crore by group chief executive officer and managing director and co-founder Aloke Bajpai, up to ₹50 crore by group chief product and technology officer, director and co-founder Rajnish Kumar, ₹550 crore by venture capital fund SAIF Partners India IV and up to ₹200 crore by consumer electronics firm Micromax Informatics. Bajpai currently holds a 9.18% stake in Ixigo, Kumar 8.79%, SAIF Partners 23.97% and Micromax 7.61%.
ICICI Securities, Axis Capital, Kotak Mahindra Capital, Nomura Financial Advisory and Securities are the lead managers to the issue.
The proceeds from the initial public offering (IPO) will be used for organic and inorganic growth initiatives. The organic growth initiatives include discounts and promotions, sales, marketing and distribution expenses, and investments to develop technology infrastructure. Inorganic growth initiatives include acquisitions and other strategic initiatives.
Launched in 2007 by Bajpai and Kumar, Ixigo helps book train, flight and bus tickets, hotels and cabs, and provides travel utility tools and services such as train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, flight status updates, bus running status, pricing and availability alerts, deal discovery, destination content, personalized recommendations, instant fare alerts for flights and automated customer support services.
For FY21, Ixigo reported total income of ₹138.41 crore, up from ₹112.96 crore in the previous year. It also swung to a net profit of ₹7.53 crore last fiscal from a year-earlier loss of ₹26.61 crore. Its net debt, however, increased to ₹99.62 crore last fiscal from ₹19.97 crore a year ago.
The company claimed that in FY21, it was the largest Indian online travel agent (OTA) for train bookings and its train-centric mobile applications, Ixigo trains and ConfirmTkt, were collectively the leading B2C distribution platforms for IRCTC with a 42% market share in terms of rail bookings among the OTAs and B2C distributors of IRCTC. Its bus-focused app, AbhiBus, was the second-largest bus-ticketing OTA in India, with a 10% market share in online bus ticket bookings. It also claimed to be the third-largest flight OTA with a market share of 12% in online air bookings.