ixigo to raise ₹740 cr at price band of ₹88-93; IPO to open on June 10

Le Travenues Technology Ltd, which operates travel booking platform ixigo, has set a price band at ₹88-93 per equity share for its upcoming initial public offering (IPO), which will open for subscription on June 10, 2024. The three-day IPO of the Gurugram-based travel company will close on June 12, while the anchor book will open for a day on June 7. The tentative date for listing of shares on the BSE and NSE is June 18.

Backed by SAIF Partners India IV, Peak XV and Micromax, the company, one of India’s leading online travel agencies (OTA) for the ‘Next Billion Users’, looks to raise ₹740 crore at the upper end of the price band. The issue comprises a fresh issue of equities worth ₹120 crore and an offer for sale of up to 6.67 crore shares worth ₹620 crore by existing shareholders.

Launched in 2007 by Aloke Bajpai and Rajnish Kumar, the batchmates of IIT Kanpur, ixigo had filed its revised draft red herring prospectus (DRHP) with markets regulator SEBI in February this year and received approval for the same in May.  The company first filed the IPO document in August 2021, eyeing to raise ₹1,600 crore, but it could not materialise due to undisclosed reasons.

Under the OFS, SAIF Partners India IV, Peak XV Partners Investments V, Micromax Informatics, Placid Holdings, Catalyst Trusteeship, Madison India Capital HC, and co-founders Aloke Bajpai and Rajnish Kumar will offload their stakes in the company.

Out of the proposed ₹120 crore equity capital, the company intends to use ₹45 crore for meeting working capital requirements, and ₹25.8 crore for cloud infrastructure and technology. The remaining fund raised from fresh equities will be utilised for inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

As per the document filed with the SEBI, the company has reserved 75% of the offer for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and remaining 10% for retail investors.

Ixigo, which competes with listed companies such as EaseMyTrip and Yatra Online, owns and operates multiple brands – ixigo flights, ixigo trains, ConfirmTkt and Abhibus, offering flight, train, buses, and hotels services to its customers through separate apps.

As per the DRHP filed with the SEBI, the company posted net profit at ₹23.4 crore for the financial year ended March 31, 2023, against loss of ₹21.09 crore in FY22. Revenue from operations rose by 34.4% to ₹517.57 crore versus ₹384.94 crore in FY22. As of March 31, 2023, the net worth of the company was ₹373.76 crore, while total assets stood at ₹585.93 crore.

The company in its IPO document said that the total Indian travel market has grown at an approximate CAGR of 10% reaching ₹3.90 lakh crore in 2020 when the travel industry was overpowered by the global pandemic. This market size is expected to grow by 7% and reach ₹5.01 lakh crore by 2024.

Axis Capital Limited, DAM Capital Advisors Limited and JM Financial Limited are the book running lead managers to the offer.

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