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Ixigo IPO: Retail portion oversubscribed within hours of launch 

Within hours of its opening, retail customers had overloaded Le Travenues Technology’s initial public offering (IPO), the parent company of online travel platform Ixigo, by a factor of 2.22. 

According to BSE data, as of 11:42 AM on Monday, retail buyers bid for 17.6 million shares out of the 7.9 million available shares. The qualified institutional buyers (QIB) have not yet demonstrated any notable activity, while the non-institutional group subscribed 0.47 times. 

A new equity issue of Rs 120 crore and an offer for sale (OFS) of up to 66.6 million shares are also part of the IPO. Partially offloading their holdings through the OFS are current shareholders Elevation Capital, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings.

Ixigo received over Rs 333 crore from anchor investors before the IPO. Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation are marquee investors in Ixigo’s anchor book.

A day before the anchor book opening, the company closed a pre-IPO secondary placement for about Rs 176.2 crore. Elevation Capital, Peak XV Partners, Micromax Informatics, and Madison India sold 18.9 million shares at Rs 93 apiece during this secondary offering, the highest price point in the company’s IPO range. Ashoka India Equity Investment Trust, Tata Mutual Fund, Bay Capital, and Steadview Capital are among the new investors who bought the shares.

Investors can bid on up to 161 shares per lot and in multiples of those after that. Ixigo has set a price range of Rs 88-93 per share. 10% of the IPO was allocated to regular investors, 15% to non-institutional buyers, and 75% to eligible institutional buyers.

Ixigo was established in 2007 and provides reservation services for trains, flights, and buses in addition to several useful resources like updates on train seat availability, train PNR status, and confirmation forecasts. In addition, the platform offers users automated customer support and personalized recommendations. It recently ventured into the lodging industry.

Ixigo’s operating income for the nine months that ended in December 2023 climbed from Rs 364.3 crore to Rs 491 crore, a 34.9% increase.

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BRL Editor
BRL Editor
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