 "ixigo shares extend rally, zoom 112% against issue price on FII buying")
ixigo shares: Shares of Le Travenues Technology, which operates online travel portal ixigo, moved higher by 19 per cent to Rs 197.50 on the National Stock Exchange (NSE) in Wednesday’s intraday trade after making a stellar stock market debut on Tuesday.
On JUne 18, the stock closed at Rs 165.72, 78 per cent higher against its issue price of Rs 93, on the back of foreign institutional investors (FIIs) lapping up the stock on its debut day. With today's rally, the market price of Le Travenues Technology has more than doubled, zooming 112 per cent against its issue price.
Yesterday, Nomura bought 6.7 million shares worth Rs 106.56 crore of Le Travenues Technology through open market via bulk deals. The shares were purchased at a price of Rs 159.09 per share on the NSE, data shows.
Nomura Funds Ireland Public Limited Company - Nomura Funds Ireland - India Equity, meanwhile, purchased 4.55 million shares, and The Nomura Trust And Banking Co. Ltd as the Trustee Of Nomura Indian Stock Mother Fund bought 2.15 million shares, data shows.
At 11:37 AM, Le Travenues Technology share price was trading 12 per cent higher at Rs 185.97 on the NSE. In comparison, the Nifty 50 was down 0.23 per cent at 23,504. A combined 33.91 million shares have changed hands on the NSE and BSE thus far in trades.
Le Travenues Technology, the parent company of popular online travel agencies Ixigo and AbhiBus, operates in the rapidly growing Indian online travel market. Its established brand presence, AI-powered operations, and diversified business model position the company for continued growth, according to analysts.
The company's list of services includes PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, alternative route or transportation planning, flight status updates, automated web check-in, bus running status, price and availability alerts, deal discovery, destination content, personalised recommendations, instant fare alerts for flights, AI-based travel planning service and automated customer support.
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The IPO got a huge response from investors with the issue getting subscribed 98.10 times. The public issue was subscribed 53.95 times in the retail category, 106.73 times in the qualified institutional buyers (QIB) category, and 110.25 times in the non-institutional investors (NII) category.
Ixigo is the leading OTA for the 'next billion users' with the highest Monthly Active Users for mobile apps across all key OTAs as of September 2023. The company recorded a strong Revenue CAGR of 350 per cent between FY20-FY23 and Revenue per employee for FY23 stood at 9.2 million.
"Though the valuations are rich, we believe that the nature of the platform business (high pass-through of revenues) and large industry opportunity size would be the key factors to drive sustained and high earnings growth in future," analysts at BP Equities said in IPO note.
While Le Travenues has demonstrated strong post-pandemic recovery with impressive top-line and bottom-line growth, some key risks require careful consideration. The company faces high customer acquisition costs and operates in a highly competitive industry. Additionally, its dependence on a broad range of travel suppliers introduces potential risks, said Swastika Investmart in IPO note.
Yet, Le Travenues' AI-powered operations provide a competitive advantage. The company caters to various travel needs, offering a strong foundation, and its impressive revenue and profit growth demonstrate a promising future. Le Travenues' strong listing is a positive sign, showcasing investor belief in its long-term growth prospects within the online travel sector, the brokerage firm said after the company's strong listing.