Ixigo IPO Garners ₹333 Crore via Anchor Book Ahead of Public Issue with Major Investors on Board

Major investors in ixigo’s IPO anchor book include Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation.

The company announced on June 7, 2024, that its IPO Committee, in consultation with Axis Capital, DAM Capital Advisors, and JM Financial, allocated 35,811,405 equity shares to anchor investors at ₹93 per share.

Of the total allocation to anchor investors, 12,087,583 shares (33.75%) were given to four domestic mutual funds through seven schemes, including SBI Magnum Children’s Benefit Fund, HDFC Mutual Fund, Whiteoak Capital Flexi Cap Fund, and Motilal Oswal Large Cap Fund.

Prior to this, ixigo completed secondary placements worth ₹176.2 crore at the upper price range just before the anchor book opened.

ixigo’s Services and IPO Details

ixigo, based in Gurugram, is a digital platform helping Indian travelers plan, book, and manage their trips via trains, flights, buses, and hotels. Using AI, machine learning, and data science, ixigo offers services such as ticket booking, train PNR status updates, train seat availability alerts, bus running status, and personalized recommendations.

The ixigo IPO consists of a new issue of shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore shares worth ₹620 crore by existing shareholders, totaling ₹740 crore.

Proceeds from the new issue will be used for:

• ₹45 crore for working capital
• ₹26 crore for technology and data science investments, including cloud hosting, AI, and customer engagement
• Support for acquisitions and general business purposes

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

The IPO price band is set at ₹88-93 per share, with investors able to bid for at least 161 shares and in multiples thereafter.

Allocation and Financial Performance

The IPO allocation is 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Investors can bid for a minimum of 161 shares.

For the nine months ending December 2023, ixigo’s revenue from operations grew 31% year-on-year to ₹497 crore, and net profit increased tenfold to ₹65.7 crore.

ixigo IPO Grey Market Premium

Today, the ixigo IPO grey market premium (GMP) is +28, meaning shares are trading at a ₹28 premium in the grey market. Based on the upper IPO price band and the current GMP, the expected listing price is ₹121 per share, 30.11% higher than the IPO price of ₹93.

The grey market premium shows investors are willing to pay more than the issue price.