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Ixigo’s initial public offering (IPO) is set to open for subscription on Monday, June 10, 2024. This is a book-built issue aiming to raise Rs 740.10 crores comprising a fresh issue of 1.29 crore shares, amounting to Rs 120.00 crores, and an offer for sale of 6.67 crore shares, totaling Rs 620.10 crores.
On June 07, the online travel booking platform secured Rs 333.05 crore from anchor investors, offering a total of 35,811,405 shares. The company intends to utilise the net proceeds for, funding the working capital requirements, investing in cloud infrastructure and technology and allocating funds for inorganic growth.
Here are the key details of Ixigo IPO
Ixigo IPO key dates
The subscription for the ixigo IPO opens on June 10, 2024, and closes on June 12, 2024. Allotment for the ixigo IPO is expected to be finalised on Thursday, June 13, 2024, with a tentative listing date set for Tuesday, June 18, 2024.
Ixigo IPO price bands, lot size
The price band for the ixigo IPO is fixed at Rs 88 to Rs 93 per share. The minimum lot size for an application is 161 shares. Retail investors are required to invest a minimum of Rs 14,973. For sNII, the minimum lot size investment is 14 lots (2,254 shares), amounting to Rs 209,622, while for bNII, it is 67 lots (10,787 shares), totaling Rs 1,003,191.
Ixigo IPO GMP
According to IPO information platform Chittorgarh IPO, the latest grey market premium (GMP) for Ixigo IPO is Rs 23. With a price band of Rs 93, the estimated listing price for the IPO is Rs 116, projecting an expected listing gain of 24.73 percent per share.
Ixigo IPO financials
Ixigo witnessed a significant revenue increase of 34.6 percent to Rs 517 crore in FY23 from Rs 384 crore in FY22. The company reported a profit after tax (PAT) of Rs 23.40 crore in FY23, compared to a loss of Rs 21.09 crore in FY22.
Ixigo IPO share allotment
The company has allocated not more than 75 percent of the shares offered of the net Issue for QIB (qualified institutional buyers) investors. Not less than 10 percent of the net Issue is reserved for retail buyers, and not less than 15 percent is earmarked for NII (Non-institutional investors).
Ixigo IPO lead book runners
Axis Capital Limited, Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd), and JM Financial Limited are the book running lead managers of the ixigo IPO, with Link Intime India Private Ltd acting as the registrar for the issue.
About Ixigo: Le Travenues Technology Limited was founded in 2006 and is an online travel agency (OTA) that enables travellers to book train, flight, and bus tickets and hotels via its OTA platforms under the brand name "ixigo”.
Post its IPO, the company will have an earnings per share of Rs 2.26 with a price to earnings multiple of 41.12 times. So, should you apply?
Here’s what key brokerages say:
Anand Rathi: According to those at Anand Rathi, Ixigo is is the second largest OTA in India in terms of consolidated revenue from operations in Fiscal 2023. The company’s vision is to become the most customer-centric travel company, by offering the
best customer experience to users.
At an upper band, the company is valued at P/E of 154x while on market-cap/sales it is valued at 7.2x post issue of equity shares, compared to its peers (Yatra Online – 192x, Easy trip planners –54.5x) on FY23 earning basis.
“Therefore, we believe that Ixigo has a scope of business improvement on the back of industry tailwinds, brand recall and business scalability, resulting in expansion of profitability. Thus, we recommend an “SUBSCRIBE – long term” rating to the
IPO,” analysts at the brokerage wrote in an IPO note.
BP Equities: Considering the financial performance, the company’s Revenue, EBITDA and PAT grew at a CAGR of 92.3 per cent, 194.9 per cent and 76.2 per cent, respectively during the FY 2021-23 period. On the upper price band, the issue is valued at a P/E of 163.2x based on FY2023 earnings, analysts at the brokerage said.
Adding that though the valuations are rich, analysts 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. Therefore, the brokerage recommended subscribing to the issue.
Canara Bank Securities: The brokerage also advised investors to subscribe for long term investment because of its leadership in market share in the online travel segment and major shift of trends of offline booking to online booking and adding new routes across so as to increase connectivity.
