Ixigo IPO Oversubscribed Over 43x as NIIs Steal the Show; check details here

Subscription Details:

• Non-institutional investors: 79.74 times
• Retail investors: 40.26 times
• Qualified Institutional Buyers (QIBs): 27.18 times

Bidding Scenario:

• The initial share sale received bids for 1,92,10,35,578 shares against 4,37,69,494 shares on offer.
• On the first day, the IPO was subscribed 1.95 times, and by the second day, it was subscribed 9.33 times.

About Le Travenues Technology (Ixigo):

• Founded in 2007 by Aloke Bajpai and Rajnish Kumar, Ixigo is a leading online travel aggregator in India.
• It helps users plan, book, and manage their travels, covering train, air, bus, and hotel bookings.

Analyst Opinion:

• Market analysts suggest that Ixigo’s IPO offers investors a unique opportunity to invest in a major player in India’s online travel agency sector, focusing on the “next billion users.”
• The issue price ranges from ₹88 to ₹93 per share.
• The IPO is a combination of fresh equity shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares worth ₹620 crore by existing shareholders, totaling ₹740 crore.

Utilization of Funds:

• The proceeds from the fresh issue will be used for working capital requirements and investments in technology and data science.
• Additionally, funds will be utilized for inorganic expansion through acquisitions and general business objectives.

Grey Market Premium:

• The grey market premium for Ixigo IPO is currently at +36, indicating a premium of ₹36 per share.
• Based on the grey market premium, the expected listing price for Ixigo IPO is indicated at ₹129 apiece, which is 38.71% higher than the IPO price of ₹93.

Book Running Lead Manager (BRLM):

• The BRLMs for the offer include Axis Capital, DAM Capital Advisors, and JM Financial.

Conclusion:

• The overwhelming subscription and positive market response indicate strong investor interest in Ixigo’s IPO, reflecting confidence in the company’s growth prospects.