June 8, 2024
New Delhi, India
Ixigo IPO: Essential Details and Key Insights
The initial public offering (IPO) of Le Travenues Technology Ltd, operating the travel booking platform Ixigo, is set to open on June 10. The IPO aims to raise ₹740 crore, with a price band set between ₹88 and ₹93 per share. The issue will close on June 12, and anchor investors can bid on June 7. Here are ten key things to know from the Red Herring Prospectus (RHP) before subscribing.
1. IPO Details and Dates
- Open Date: June 10, 2024
- Close Date: June 12, 2024
- Price Band: ₹88 to ₹93 per share
- Anchor Investor Bidding: June 7, 2024
2. Issue Size and Allocation
- Total Issue Size: ₹740 crore
- New Issue of Equity Shares: ₹120 crore
- Offer For Sale (OFS): ₹620 crore
- Allocation: 75% to Qualified Institutional Buyers (QIBs), 15% to non-institutional investors, and 10% to retail investors.
3. Minimum Investment
- Lot Size: 161 shares
- Minimum Investment: Investors need to bid for at least 161 shares and in multiples thereof.
4. Use of Proceeds
- Working Capital: ₹45 crore
- Technology and Data Science Investments: ₹26 crore
- Inorganic Expansion and General Corporate Purposes: Remaining funds
5. Key Financials
- Total Income: ₹517 crore for FY ending March 2023, up from ₹385 crore the previous year.
- Profit: ₹23.4 crore for FY ending March 2023, compared to a loss of ₹21 crore the previous year.
6. Major Shareholders Selling Through OFS
- SAIF Partners India IV Ltd: 19,437,465 equity shares
- Peak XV Partners Investments V: 13,024,000 equity shares
- Micromax Informatics Ltd: 5,486,893 equity shares
- Placid Holdings: 3,048,375 equity shares
- Catalyst Trusteeship Ltd: 1,333,513 equity shares
- Madison India Capital HC: 447,428 equity shares
- Aloke Bajpai and Rajnish Kumar: Each selling 11,950,000 equity shares
7. Market Position and Demand
- Next Billion Users Market: Ixigo has a strong presence in this market segment, which includes users new to the internet from tier II, III, and rural areas, as well as middle and lower-income groups in tier I cities.
8. Company’s Operational Strategy
- Entrepreneurial Culture: Ixigo credits its success to a flat organizational structure and entrepreneurial culture, which helps contain operating expenses while maintaining growth.
9. Book Running Lead Managers
- Axis Capital Limited
- Dam Capital Advisors Ltd
- JM Financial Limited
- Registrar: Link Intime India Private Ltd
10. Grey Market Premium (GMP)
- GMP: As of now, the Ixigo IPO has no premium or discount, trading at its issue price of ₹93 according to investorgain.com.
Also Read: RBI Holds Repo Rate at 6.50%; Raises FY25 GDP Growth Forecast to 7.2%
Conclusion
Ixigo’s upcoming IPO offers a blend of new equity shares and an Offer For Sale, providing a substantial opportunity for investors. With a robust financial performance and a strategic focus on the ‘next billion users’ market, Ixigo aims to leverage its IPO proceeds to fuel further growth and technological advancements.
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