Catch the Ixigo Ride: Travel Tech Startup's IPO Opens for Subscription

Le Travenues Technology Ltd., the company behind the popular travel platform Ixigo, has launched its much-anticipated initial public offering (IPO) today, June 10th. This subscription closes on June 12th. Let's dive deep into everything you need to know to make an informed decision.

Ixigo is a major player in the Indian travel tech scene, boasting the top spot in online travel agency (OTA) rail ticket distribution with a commanding 51% market share (as of March 31, 2023). This leadership position is a strong indicator of their ability to cater to the travel needs of the Indian market.

Pre-IPO Boost: Backing from Industry Titans

Ixigo's pre-IPO phase saw them secure a solid Rs 333 crore from a prestigious group of anchor investors. This list includes renowned names like Nomura, Morgan Stanley, and the Government of Singapore, showcasing strong institutional confidence in Ixigo's future.

The Ixigo IPO is a two-pronged approach, consisting of a fresh issue of Rs 120 crore in new equity shares and an offer for sale (OFS) of up to 6.66 crore shares by existing stakeholders. This OFS allows key investors like SAIF Partners and Micromax Informatics to partially offload their holdings.

Investing Ranges and Minimum Requirements

The price band for Ixigo's IPO is set between Rs 88 and Rs 93 per share. To participate, investors can bid for a minimum lot size of 161 shares, requiring a minimum investment of Rs 14,973. At the upper end of the price range, the total IPO size reaches a significant Rs 740.10 crore.

Axis Capital, Dam Capital Advisors Ltd, and JM Financial are the trusted advisors managing the Ixigo IPO. Link Intime India Private Ltd takes the responsibility of IPO registrar, ensuring a smooth and transparent process.

Fueling Growth: Planned Use of IPO Proceeds

Ixigo aims to strategically utilize the net proceeds from the IPO. A portion will go towards bolstering working capital and cloud infrastructure, while the rest will be directed towards strategic acquisitions, technological advancements, and other corporate initiatives.

The grey market premium (GMP) for Ixigo's IPO currently sits at Rs 23 per share. This indicates that shares are trading at Rs 116 in the unlisted market, a noteworthy 24.73% increase over the issue price. This positive sentiment suggests potential for strong post-listing performance.

Ixigo IPO: A Takeoff Opportunity for Investors

Many analysts are recommending subscribing to the Ixigo IPO. They highlight the company's market leadership, the burgeoning online travel sector in India, and Ixigo's impressive growth trajectory. The company's financial performance reflects this optimism, with revenue, EBITDA, and profit after tax (PAT) experiencing significant growth over the past three fiscal years.

Analysts suggest that Ixigo's IPO presents a compelling opportunity for investors seeking to capitalize on the thriving Indian online travel market. With a dominant market position, strong pre-IPO backing, and positive analyst sentiment, Ixigo is poised for significant growth. 

Regulatory Disclaimer:

Investing in stocks involves inherent risks. You are solely responsible for your investment decisions and the potential for financial losses. This article is based for informational purposes only and should not be considered financial advice. It does not recommend buying or selling any specific securities. While references to certain companies may be made, they are for illustrative purposes only. Always consult with a qualified financial advisor before making any investment decisions.

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