Retail Investors Drive Over 4x Oversubscription of ixigo IPO on Day 2

Strong demand from retail investors has led to over 4 times oversubscription of the ixigo IPO on its second day. The initial share sale of ₹740 crore has garnered bids for 20,52,11,888 shares against the 4,37,69,494 shares on offer, according to BSE data.

Retail individual investors have subscribed 12.32 times, while non-institutional investors have subscribed 8.20 times. However, the qualified institutional buyers (QIBs) component has only seen a 39% subscription.


Analyst Insights

Rajan Shinde, Research Analyst at Mehta Equities Ltd, stated that the ixigo IPO subscriptions align with expectations, with retail investors showing more than 10 times interest, followed by non-institutional investors (NIIs)/HNIs subscribing more than 7 times. He anticipates potential decent listing gains of over 20% for investors.

The ixigo IPO, which opened on June 10 and closes on June 12, had secured ₹333 crore from anchor investors before its public offering. Prior to the IPO, current stockholders sold shares for over ₹176 crore in a pre-IPO transaction.

About ixigo and IPO Details

ixigo, also known as Le Travenues Technology, is a technology company facilitating travel bookings for Indian travellers across trains, flights, buses, and hotels. The IPO includes a new issue of equity shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares worth ₹620 crore by existing shareholders. The proceeds will fund working capital requirements, technology investments, inorganic expansion, and general business objectives.

The book running lead managers for the IPO are Axis Capital Limited, Dam Capital Advisors Ltd, and JM Financial Limited, with Link Intime India Private Ltd serving as the registrar.

In the grey market, the ixigo IPO is trading at a premium of ₹28, indicating investor readiness to pay more than the issue price. Considering the upper end of the IPO price band, the expected listing price is ₹121 per share, a 30.11% increase from the IPO price of ₹93.

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