by Vijaylakshmi
The initial public offer (IPO) of Le Travenues Technology, which operates the travel platform Ixigo, will open for subscription on Monday. Ahead of the issue opening, the company’s shares are trading with a premium of INR 25 in the unlisted market.
This compares with an IPO pricing of INR88-93 per share, which translates to a listing gain of around 27% if the trends sustain.
The company raised around INR333 crore from anchor investors where Nomura, Morgan Stanley, 3P India Equity Fund, HDFC MF, Motilal Oswal MF, Government of Singapore, and Tata Investment Corp among others participated.
Ixigo had already announced a pre-IPO secondary placement of around INR176.2 crore at the top end of price band, completed a day prior to anchor book opening.
The IPO comprises a fresh equity sale of INR120 crore and an offer for sale (OFS) of up to 6.66 crore shares. Under the OFS, SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will offload part of their stakes.
About 75% of the offering is reserved for qualified institutional bidders (QIBs), while 15% is reserved for non-institutional investors and the remaining 10% for retail investors.
Net proceeds from the public offer are proposed to be utilised for funding working capital requirements, investments in tech, funding inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.
Ixigo is a technology company focused on empowering Indian travelers to plan, book and manage their trips across rail, air, buses and hotels. It assists travelers in making smarter travel decisions by leveraging artificial intelligence, machine learning and data science-led innovations on its OTA platforms.
Travelers can book train, flight and bus tickets and hotels while accessing utility tools and services including train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, bus running status, personalized recommendations, instant fare alerts and automated customer support services.
The ancillary attachment rate for the company’s value-added services was 15.43% in fiscal 2021 and increased to 26.41% in fiscal 2022 and increased to 28.87% in fiscal 2023.
The total Indian travel market as represented by modes of air, rail, road and hotel is estimated at around INR3.8 lakh crore in FY23 and expected to grow at a CAGR of around 9% to reach INR5.8 lakh crore by FY28.
For the nine months ended December 2023, revenue from operations increased 31% year-on-year to INR497 crore, while net profit jumped multifold to INR65.7 crore.
Axis Capital, DAM Capital and JM Financial are the book-running lead managers to the issue, while Link Intime India is the registrar.
