June 10, 2024 – Le Travenues Technology Ltd, known by its popular brand name ixigo, launches its initial public offering (IPO) for subscription today. Ixigo, a technology company, specializes in facilitating travel bookings across various modes of transportation and accommodations for Indian travelers.
Ixigo holds the largest market share in the Indian train ticket distribution among Online Travel Agencies (OTAs), with a market share of approximately 51% as of March 31, 2023. The IPO bidding commences on June 10 and closes on June 12. The IPO allotment is expected to be finalized by June 13, with the listing date set for June 18.
The price band for the ixigo IPO has been set at ₹88 to ₹93 per share, with a lot size of 161 shares. The minimum investment amount required by retail investors is ₹14,973. The IPO size amounts to ₹740.10 crore, including a fresh issue of equity shares and an offer for sale component.
Ixigo has already raised ₹333 crore from anchor investors ahead of its IPO opening. Axis Capital, Dam Capital Advisors Ltd, and JM Financial are the book running lead managers, while Link Intime India Private Ltd is the IPO registrar.
The net proceeds from the IPO will be utilized for various purposes, including working capital requirements, investments in technology infrastructure, funding for inorganic growth, and general corporate purposes.
The grey market premium (GMP) for ixigo IPO stands at ₹23 per share, indicating a positive sentiment among investors. The IPO has garnered significant interest, with subscription levels reaching 1.03 times within hours of opening.
Analysts have recommended subscribing to the ixigo IPO, citing its leadership in market share, industry trends favoring online travel bookings, and promising growth prospects. Despite rich valuations, the platform’s nature and the vast industry opportunity size are expected to drive sustained earnings growth in the future.
Several brokerage firms, including Anand Rathi, BP Equities, and Canara Bank Securities, have given a “Subscribe” rating to the ixigo IPO for long-term investment.
