ixigo IPO: On June 10, ixigo (Le Travenues Technologies), an online travel agency, opened its initial public offering (IPO) to investors with a target price of Rs 740,10 crore. Through a combination of an offer for sale and a new issuance, the corporation is making 79.6 million shares available. The company plans to issue 12.9 million new shares in order to raise Rs 120 crore. Promoters and other selling shareholders will take home the majority of the issue, Rs 620.10 crore, by selling their 66.7 million shares.
The deadline to submit is June 12. The equity share issuance price was maintained by the corporation within the range of Rs 88 to 93. Retail investors must apply for a minimum of one lot, or 161 shares, at a cost of Rs 14,973. QIBs and NIIs may apply for separate sets of shares.
By June 13, the share allocation is anticipated to be finalized. The tentative date of the listing is June 18.
Dam Capital Advisors, formerly known as IDFC Securities, JM Financial, and Axis Capital are the issue’s book-running lead managers. The registrar for the issue is Link Intime India, which also handles payment refunds and share allocation.
Regarding Ixigo
Ixigo is an online travel agency technology firm that assists Indian tourists with organizing, scheduling, and managing their travel plans for buses, trains, and hotels. Ixigo focuses on localized content and app features designed to address Tier II/Triple-II traveler issues. Using AI, ML, and data science-driven technologies on their OTA platforms—which include their websites and mobile applications—they help travelers make more informed travel choices.
The company is motivated by cost-effectiveness and technology to concentrate on travel utility and customer experience for travelers in the “next billion user” market segment.
Analyst opinions on Ixigo’s IPO
In comparison to its peers (Yatra Online, 192x, and Easy Trip Planners, 54.5x) on an FY23 earning basis, the firm is valued at an upper band of a P/E of 154x, while on market-cap/sales, it is valued at 7.2x following issuing of equity shares. Consequently, we think that Ixigo has room to grow its business thanks to market tailwinds, brand recall, and business scalability, which will increase profitability. Thus, in an IPO letter, Anand Rathi Research recommended giving the IPO a “Subscribe – long term” grade.
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