Le Travenues Technology Ltd, the company behind the travel booking website ixigo, will start its initial public offering (IPO) on Monday, June 10, and it will end on Wednesday, June 12. Just before this, ixigo raised ₹333 crore from anchor investors.
Anchor Investment and Pricing Details
On Friday, ixigo announced that it sold 3.58 crore equity shares to 23 funds at ₹93 each, totaling ₹333 crore. The IPO price range is set between ₹88 and ₹93 per share.
Company Overview
ixigo helps Indian travelers plan and manage trips via train, air, bus, and hotels. It’s a top Online Travel Agency (OTA) aimed at the “next billion customers,” focusing on local content and features that cater to people from smaller cities (tier II and III). They use advanced technology like artificial intelligence to improve travel planning through their website and mobile apps.
In a pre-IPO deal, ixigo’s existing shareholders sold shares worth just over ₹176 crore. Investors like Ashoka India Equity Investment Trust, Tata funds, Bay Capital Holdings, Steadview Capital, and ixigo co-founders Aloke Bajpai and Rajnish Kumar bought these shares.
IPO Allocation and Bidding
The IPO is divided as follows: 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Investors can bid for at least 161 shares and in multiples thereafter.
Grey Market Premium (GMP) Insights
According to investorgain.com, ixigo’s grey market premium (GMP) is +₹25. This means the shares are expected to list at ₹118, which is 26.88% higher than the top IPO price of ₹93. The GMP has been rising, indicating strong demand and a positive listing outlook.
IPO Structure and Use of Proceeds
The ixigo IPO includes a new issue of equity shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore shares valued at ₹620 crore, making the total public offering worth ₹740 crore.
The proceeds from the fresh issue will be used as follows:
- ₹45 crore for working capital
- ₹26 crore for technology and data science investments
- Remaining funds for acquisitions and general business purposes
Financial Highlights
For the nine months ending in December 2023, ixigo’s revenue increased by 31% to ₹497 crore. Net profit surged tenfold to ₹65.7 crore.
Axis Capital, DAM Capital Advisors, and JM Financial are managing the IPO, with Link Intime India as the registrar.
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