Ixigo Raises ₹333 Crore from Top Investors Like Aloke Bajpai and SAIF Partners Before IPO – Subscription Opens June 10

Some of the key investors who participated in this round include Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation.

Ixigo had previously completed pre-IPO secondary placements worth approximately ₹176.2 crore, done at the higher end of the price range, just before opening the anchor book.

IPO Details

The IPO consists of a fresh issue of equity worth ₹120 crore and an offer for sale (OFS) of up to 6.66 crore shares. SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will be selling some of their shares through the OFS.

The price band for the shares is set at ₹88-93 each. Investors can bid for a minimum of 161 shares per lot and in multiples after that. About 75% of the IPO is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors. The money raised will be used for working capital, tech investments, acquisitions, strategic initiatives, and general corporate purposes.

Ixigo’s Business Model

Ixigo is a tech company that helps Indian travelers plan, book, and manage their travel across trains, flights, buses, and hotels. They use AI, machine learning, and data science to offer smarter travel solutions. The platform allows booking for various travel services and offers tools like PNR status, seat availability alerts, and delay predictions.

The company’s value-added services saw an increase in usage, going from 15.43% in fiscal 2021 to 28.87% in fiscal 2023. The Indian travel market, including air, rail, road, and hotel services, was about ₹3.8 lakh crore in FY23 and is expected to grow to ₹5.8 lakh crore by FY28, growing at about 9% annually.

For the nine months ending December 2023, Ixigo’s revenue from operations grew by 31% to ₹497 crore, and their net profit surged to ₹65.7 crore.

Axis Capital, DAM Capital, and JM Financial are the lead managers for the IPO, with Link Intime India as the registrar.