Introduction
Le Travenues Technology Ltd, the company behind the travel booking website ixigo, is all set to launch its Initial Public Offering (IPO) on June 10, 2024. With a price band of ₹88 to ₹93 per share, the IPO aims to raise substantial funds, offering significant opportunities for investors. This article delves into the details of the ixigo IPO, analyzing its potential impact, the grey market premium (GMP) signals, and what investors can expect from this much-anticipated public issue.
ixigo IPO Details
Key Dates and Price Band
- Subscription Dates: June 10 to June 12, 2024
- Price Band: ₹88 to ₹93 per share
- Minimum Bid: 161 shares and multiples thereof
Allocation of Shares
- Qualified Institutional Buyers (QIBs): 75%
- Non-Institutional Investors: 15%
- Retail Investors: 10%
Pre-IPO Investments
ixigo raised ₹333 crore from anchor investors ahead of its IPO, selling 3.58 crore equity shares to 23 funds at ₹93 per share.
Understanding the Grey Market Premium (GMP)
What is GMP?
The Grey Market Premium (GMP) refers to the extra amount investors are willing to pay over and above the issue price in the grey market. This premium often provides insights into the market sentiment and potential listing price of the IPO.
ixigo IPO GMP Trends
As of today, the ixigo IPO GMP is +25, indicating a strong market interest. This suggests that the shares are expected to list at approximately ₹118 per share, a 26.88% increase from the upper end of the IPO price band.
Historical GMP Data
- Lowest GMP: ₹0
- Highest GMP: ₹28
The current upward trend in GMP suggests robust demand and positive market sentiment ahead of the IPO opening.
Company Profile: Le Travenues Technology Ltd (ixigo)
Overview
Le Travenues Technology Ltd, based in Gurugram, is renowned for its travel booking website ixigo. The platform helps Indian travelers plan, schedule, and manage their journeys across various modes of transport, including trains, flights, buses, and hotels.
Market Position
ixigo positions itself as a premier Online Travel Agency (OTA) catering to the ‘next billion customers’ in India, focusing on localized content and features that address the needs of tier II and tier III travelers.
Technology and Innovation
ixigo leverages artificial intelligence (AI), machine learning (ML), and data science to enhance its OTA platforms, providing users with smarter travel solutions.
Financial Highlights and IPO Objectives
Financial Performance
For the nine months ending December 2023, ixigo reported:
- Revenue from Operations: ₹497 crore (31% year-on-year increase)
- Net Profit: ₹65.7 crore (tenfold increase)
Use of IPO Proceeds
- Working Capital: ₹45 crore
- Technology and Data Science Investments: ₹26 crore
- Inorganic Expansion: Acquisition funding and general business objectives
Key Investors in Pre-IPO
- Ashoka India Equity Investment Trust Plc
- Tata Multi Asset Opportunities Fund
- Tata Digital India Fund
- Bay Capital Holdings
- Steadview Capital Mauritius
Book Running Lead Managers and Registrar
- Lead Managers: Axis Capital Limited, Dam Capital Advisors Ltd, and JM Financial Limited
- Registrar: Link Intime India Private Ltd
Market Sentiment and Expert Opinions
Analysts’ View
Market analysts from investorgain.com have highlighted the positive trend in GMP, indicating a strong potential listing for ixigo shares. The steady increase in GMP over the past sessions suggests growing investor confidence.
Recommendations
While the views and recommendations of analysts and brokerage firms provide valuable insights, potential investors are advised to consult with certified experts before making investment decisions.
Conclusion
The ixigo IPO, opening on June 10, 2024, presents a promising investment opportunity given the strong GMP and positive market sentiment. With a solid financial performance, strategic use of IPO proceeds, and substantial pre-IPO investments, ixigo is poised for a successful public issue. Investors should carefully consider all factors and seek expert advice to make informed decisions.
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