The Le Travenues Technology Ltd, known as Ixigo, opens for subscription today. Ixigo is an online travel booking company that helps Indian travelers plan, book, and manage trips for trains, flights, buses, and hotels.
As of March 31, 2023, ixigo is the largest distributor of train tickets in India’s online travel agency market, holding a market share of around 51% in rail bookings.
Ixigo IPO Details
The Ixigo IPO opens today, i.e. June 10, and ends on June 12. The allotment of shares is expected to be finalized on June 13, with the listing date set for June 18.
Key Details:
- Price Band: ₹88 to ₹93 per share
- Lot Size: 161 shares
- Minimum Investment: ₹14,973 for retail investors
- IPO Size: ₹740.10 crore
- Fresh Issue: 1.29 crore equity shares, totaling ₹120 crore
- Offer for Sale (OFS): 6.67 crore shares, totaling ₹620.10 crore
Additional Information:
- Anchor Investors: ixigo raised ₹333 crore from anchor investors last week.
- Lead Managers: Axis Capital, Dam Capital Advisors Ltd, and JM Financial
- IPO Registrar: Link Intime India Private Ltd
Use of Funds:
- Working capital requirements
- Investments in cloud infrastructure and technology
- Funding inorganic growth through acquisitions and strategic initiatives
- General corporate purposes
Ixigo IPO GMP Today
According to stock market observers, the grey market premium (GMP) for the ixigo IPO today is ₹23 per share. This means ixigo shares are trading at ₹116 each in the grey market, which is ₹23 higher than the upper issue price of ₹93 per share, reflecting a premium of 24.73%.
Analysts Recommend Subscribing to Ixigo IPO
Most analysts suggest subscribing to the ixigo IPO due to its strong market share in the online travel segment, favorable industry conditions, and future growth potential. Here’s what brokerages say:
“At the upper price band, ixigo is valued at a P/E of 154x and a market-cap/sales ratio of 7.2x post-issue, compared to peers like Yatra Online (192x) and Easy Trip Planners (54.5x) based on FY23 earnings,” said domestic brokerage firm Anand Rathi. “We believe ixigo has potential for business improvement due to industry tailwinds, strong brand recognition, and scalability, leading to increased profitability.” Anand Rathi recommends a “Subscribe – long term” rating for the ixigo IPO.
Subscribing to Ixigo IPO for Long-Term Gains
Analysts suggest subscribing to the ixigo IPO due to its strong financial performance and market potential. From FY21 to FY23, ixigo’s revenue, EBITDA, and PAT grew at an annual rate of 92.3%, 194.9%, and 76.2%, respectively.
BP Equities stated, “At the upper price band, the IPO is valued at a P/E of 163.2x based on FY23 earnings. Although the valuations are high, the platform’s business model and the large market opportunity will likely drive strong earnings growth in the future.” They recommend subscribing to the issue. Canara Bank Securities also advises subscribing for long-term investment, highlighting ixigo’s market leadership in online travel and the shift from offline to online booking.
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