The IPO (Initial Public Offering) of Le Travenues Technology, the company behind the travel platform Ixigo, will start on Monday. Before the IPO begins, Ixigo’s shares are already trading at a ₹25 premium in the unlisted market.
Here’s a simple breakdown:
Key IPO Details:
- IPO Price: The shares are priced between ₹88-₹93 each.
- Current Market Premium: Shares are trading with a ₹25 premium. This suggests a potential 27% gain on the listing day if this trend continues.
- Funds Raised: Ixigo has already secured about ₹333 crore from anchor investors, including big names like Nomura, Morgan Stanley, HDFC Mutual Fund, and the Government of Singapore.
Pre-IPO Placements:
Ixigo conducted a pre-IPO placement worth ₹176.2 crore at the top end of its price range. This was done just before the anchor book opened.
IPO Breakdown:
- Fresh Equity Sale: ₹120 crore.
- Offer for Sale (OFS): Up to 6.66 crore shares.
- Selling Stakeholders: SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings.
- Allocation:
- 75% for qualified institutional buyers (QIBs).
- 15% for non-institutional investors.
- 10% for retail investors.
Use of IPO Funds:
The money raised will be used for:
- Working capital
- Technology investments
- Acquisitions and strategic growth
- General corporate purposes
About Ixigo:
Ixigo is a tech-driven travel company that helps people in India plan, book, and manage travel by train, air, bus, and hotels. They use artificial intelligence and machine learning to offer smart travel solutions, including:
- Booking train, flight, and bus tickets
- Hotel reservations
- Checking train PNR status
- Getting train seat availability alerts
- Train running status updates and delay predictions
- Bus running status
- Personalized travel recommendations
- Instant fare alerts
- Automated customer support
Ixigo has seen an increase in their value-added services. Their attachment rate for these services went from 15.43% in fiscal year 2021 to 28.87% in fiscal year 2023.
Market and Financial Performance:
- Travel Market Size: The Indian travel market (air, rail, road, and hotels) was about ₹3.8 lakh crore in FY23 and is expected to grow to ₹5.8 lakh crore by FY28.
- Revenue: For the nine months ending December 2023, Ixigo’s revenue increased by 31% to ₹497 crore.
- Profit: Net profit surged to ₹65.7 crore in the same period.
Key Managers:
- Book-Running Lead Managers: Axis Capital, DAM Capital, and JM Financial.
- Registrar: Link Intime India.
This IPO is a significant step for Ixigo as it expands its presence in the growing Indian travel market. Keep an eye on how the shares perform once the IPO is live!
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