Multibagger IPO: ixigo share price doubles allottees money within two days of listing. More steam left?

  • ixigo IPO was offered at higher valuations and, based on the company's annual balance sheet for FY23, the stock's fair value is around 140 to 145, say experts

Asit Manohar
First Published19 Jun 2024, 11:35 AM IST
Multibagger IPO: On valuation parse post-IPO listing, the valuations got overstretched and difficult to justify for any fresh buying, say experts.
Multibagger IPO: On valuation parse post-IPO listing, the valuations got overstretched and difficult to justify for any fresh buying, say experts.(Photo: Courtesy company website)

ixigo share price: After a dream debut, which refers to a stock's first day of trading on a stock exchange, on Dalal Street on Tuesday, shares of the ixigo brand parent company Le Travenues Technology Limited, extended its listing gain, which is the difference between the opening and closing price on the first day of trading, for a second straight session on Wednesday. After ending at 165.72 per share mark post-strong debut on NSE, ixigo share price today opened upside at 183 per share in early morning session and touched an intraday high of 197.50 per share within a few minutes of opening bell. While climbing to this intraday high of 197.50 per share, ixigo shares went on to double allottees' money by a huge margin as the upper price band, which is the highest price at which shares can be sold during an IPO, of ixigo IPO was 93 per equity share.

However, it's important to note that according to stock market experts, ixigo IPO was offered at a higher valuation and the stock has more than doubled against the upper price band. This suggests that the chances of further upside are limited, and the risk-reward ratio does not favor any fresh investment or holding the scrip. Therefore, it's advisable for fresh investors with a long-term view to wait for a correction until the stock reaches around 140 to 145 apiece levels.

ixigo share price outlook

Reiterating the advice to ixigo shareholders to book profit and exit, Prashanth Tapse, Senior Vice President — Research at Mehta Equities, emphasized, “On valuation parse post-IPO listing, the valuations got overstretched and difficult to justify for any fresh buying. Given ixigo's strong presence in rail bookings and a significant market share through ixigo and ConfirmTkt, the company is well-positioned in the rapidly growing travel sector. Hence, only risk-taking investors can continue to hold on to Risk for a long-term perspective, while conservative investors should look to book profits.”

Arun Kejriwal, Founder of Kejriwal Research and Investment Services, provides a detailed outlook on the ixigo share price. He notes that the IPO was offered at higher valuations and, based on the company's annual balance sheet for FY23, the stock's fair value is around 140 to 145. This suggests that the stock is overvalued and a correction of around 50 to 55 is possible from current levels, making a fresh entry in the stock not advisable.

Arun Kejriwal also advised Ixigo shareholders to book profit and exit as the stock may witness a sharp correction after the sell-off trigger.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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$112 B

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₹12,300 Cr

$136 M

First Published:19 Jun 2024, 11:35 AM IST
HomeMarketsStock MarketsMultibagger IPO: ixigo share price doubles allottees money within two days of listing. More steam left?

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