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Business News/ Markets / Stock Markets/  Ixigo IPO: Price band set at 88-93 per share; check issue details here
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Ixigo IPO: Price band set at ₹88-93 per share; check issue details here

Ixigo's IPO is set to raise ₹740 crore through a price band of ₹88-93 per share. The company aims to utilise the funds for working capital, technology investments, and strategic growth initiatives.

New listing: Ixigo is a travel technology company dedicated to empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels.Premium
New listing: Ixigo is a travel technology company dedicated to empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels.

The IPO of Le Travenues Technology, the company that operates the travel tech platform Ixigo, is scheduled to be open for bids from June 10, 2024, to June 12, 2024. The price band for the IPO is set at 88 to 93 per equity share. The company plans to raise 740 crore through an initial public offering.

The IPO includes a fresh equity sale of 120 crore and an offer for sale (OFS) of up to 6.66 crore shares ( 620 crore). In the OFS, stakeholders such as SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will sell part of their stakes.

The net proceeds from the public offer are intended to be used for funding working capital requirements, investments in technology, supporting inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.

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The issue is being made through the book-building process, with up to 75% of the net issue available for allocation to qualified institutional buyers on a proportionate basis, 15% to non-institutional investors, and a minimum of 10% of the net issue available for allocation to retail investors on a proportionate basis.

The minimum lot size for retail investors is set at one (161 shares), requiring a minimum investment of 14,973 to participate in the IPO. For the NII, the minimum lot size investment is 14 lots (2254 shares), totaling 2,09,622. 

Axis Capital, DAM Capital, and JM Financial are serving as the book-running lead managers for the issue, with Link Intime India acting as the registrar.

The company filed its draft red herring prospectus (DRHP) with the markets regulator SEBI in February and received approval in May.

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About Ixigo

Ixigo is a travel technology company dedicated to empowering Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels. The company aids travelers in making smarter travel decisions by leveraging innovations in artificial intelligence, machine learning, and data science on its OTA platforms.

The company commenced operations in 2007 in the flight vertical by launching a travel meta-search website aimed at providing travelers with an aggregated comparison of deals and accurate travel information, facilitating their purchase of flight tickets on third-party airline and OTA websites.

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In 2013, it launched the Ixigo Trains app for Android as a utility app with the objective of improving the experience of Indian train travelers by allowing them to search for train-related information and providing utility services, such as updates on the status of their PNR numbers, that helped them make travel decisions.

With the aim of becoming a comprehensive ‘one-stop’ travel solution, the company further introduced bus ticketing on its platform in 2016. To consolidate its position in the bus business, it acquired the business of AbhiBus and holds a significant minority stake in FreshBus, according to the company's DRHP report. 

In addition, the company launched a hotel booking section on its website and apps in December 2023 to give users the ability to search for, compare, and book hotels on its own platforms in India and across the world.

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Healthy growth

As of March 31, 2023, the company's annual active users numbered 429.38 million, with 49.07 million transactions booked through its OTA platforms in fiscal 2023. By December 31, 2023, it had accumulated 213.21 million registered users, denoting users who had furnished their unique mobile number or email address on its platforms. 

During the nine months ending December 31, 2023, its OTA platforms facilitated 42.00 million transactions.

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The Ixigo trains app and ConfirmTkt app were also featured in the top 10 travel apps in India, with the Ixigo trains app ranked 2nd and ConfirmTkt ranked 7th, in terms of most downloaded travel apps, the company said in its DRHP report, citing F&S Report as the source. 

Financials

The company announced that it was the fastest-growing OTA in India, experiencing remarkable revenue growth from operations between fiscal 2020 and fiscal 2023, according to the F&S Report. Its revenue from operations exhibited a CAGR of 92.29% between fiscal 2021 and fiscal 2023. 

Specifically, its revenue from operations stood at 1,355.66 million, 3,795.80 million, and 5,012.50 million in Fiscals 2021, 2022, and 2023, respectively. Additionally, its revenue from operations reached 3,643.08 million and 4,910.21 million during the nine months ending December 31, 2022, and December 31, 2023, respectively.

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It recorded a restated profit before tax of 27.07 million in fiscal 2021, followed by a restated loss before tax of 176.00 million in fiscal 2022. However, it rebounded strongly in fiscal 2023, achieving a restated profit before tax of 206.74 million. 

Notably, its restated profit before tax stood at 144.02 million and 485.03 million for the nine months ended December 31, 2022, and December 31, 2023, respectively.

 

Disclaimer:  We advise investors to check with certified experts before taking any investment decisions.

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Published: 05 Jun 2024, 11:37 AM IST
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