ixigo IPO Day 3: Unlisted shares of Le Travenues Technology Ltd, or ixigo, are trading Rs 36 higher in the grey market, expecting a 38.71 per cent listing gain from the public issue
ixigo IPO: The initial public offering of Gurugram-based Le Travenues Technology Ltd, which operates travel booking platform ixigo, is going to be closed on June 12. The Rs 740.10-crore mainboard IPO, which was opened for public subscription on June 10, has so far received a strong response from investors. Till 10:04 am on the final day of bidding on Wednesday, the IPO received 10.94 times subscription garnering bids for 47,89,97,701 shares as against 4,37,69,494 shares on offer.
Shares reserved for Non-institutional investors (NII) were subscribed 24.39 times whereas the portion of qualified institutional buyers (QIB) received a 80 per cent subscription. The retail investors’ quota has been subscribed 21.22 times.
Ahead of the IPO, ixigo has mobilised Rs 333 crore from anchor investors.
The price band of the ixigo IPO has been fixed at Rs 88 to Rs 93 per share.
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ixigo IPO: Subscription, Allotment And Listing Dates
The ixigo IPO will remain open between June 10 and June 12. Its allotment will likely be finalised on June 13, while its listing will take place on both BSE and NSE on June 18.
ixigo IPO: Price and Lot Size
The price band of the ixigo IPO has been fixed at Rs 88 to Rs 93 per share.
Investors need to apply for a minimum of 161 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,973 (161 (lot size) x Rs 93 (upper price band)).
ixigo IPO: Category-Wise Quota
The issue has been reserved up to 75 per cent for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 10 per cent for retail investors.
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ixigo IPO GMP Today
According to market observers, unlisted shares of Le Travenues Technology Ltd, or ixigo, are trading Rs 36 higher in the grey market as compared with its issue price. The Rs 36 grey market premium or GMP means the grey market is expecting a 38.71 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
ixigo IPO: Risks
The offer price, market cap-to-revenue multiple, and P/E ratio may not reflect the company’s market price at listing or afterward.
ixigo’s train ticketing services are based on their arrangement with IRCTC. Termination of the company’s agreement with IRCTC may halt train ticketing services and significantly harm their operations, cash flow, financial condition, and business prospects.
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ixigo IPO: More Details
The Rs 740-crore ixigo IPO is a combination of a fresh issue of equity shares worth Rs 120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares to the tune of Rs 620 crore, at the upper end of the price band, by existing shareholders.
Under the OFS, SAIF Partners India IV Ltd, Peak XV Partners Investments V (formerly known as SCI Investments V), Micromax Informatics Ltd, Placid Holdings, Catalyst Trusteeship Ltd, Madison India Capital HC, Aloke Bajpai and Rajnish Kumar will be selling shares.
Proceeds worth Rs 45 crore from the fresh issue will be used to fund the company’s working capital requirements and Rs 26 crore will be utilised for investments in technology as well as data science, including on cloud and server hosting, technology on artificial intelligence and customer engagement.
Additionally, funds will be used to support inorganic growth through acquisitions, and for general corporate purposes.
The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 161 shares and in multiples thereof.
Launched in 2007 by Aloke Bajpai and Rajnish Kumar, Le Travenues Technology is the country’s leading online travel aggregator, which helps travellers to plan, book and manage their trips across rail, air, buses and hotels.
The company’s total income rose to Rs 517 crore in the financial year ended March 2023 from Rs 385 crore in the preceding fiscal. The firm logged a profit of Rs 23.4 crore for the year ended March 2023 whereas it had a loss of Rs 21 crore in the previous financial year.
Axis Capital, DAM Capital Advisors and JM Financial are the book running lead managers to the public issue.
