Ixigo IPO to open on June 10: Check price band, financials, pros and cons of this IPO before bidding

Ixigo IPO: Online travel agency Le Travenues Technology Limited, which operates Ixigo website, is all set to launch its initial public offering (IPO) on Monday, June 10.

The bidding window for the IPO will remain open for a period of three days till Wednesday, June 12.

Ixigo IPO price band, lot size and minimum investment

Ixigo IPO price band has been fixed at ₹88 to ₹93 per share, of a face value of ₹1 each. Retail investors can bid for the IPO by making a minimum investment of 161 shares, which amounts to ₹14,973.

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Ixigo IPO registrar

The book-running lead managers for Ixigo IPO are Axis Capital Limited, Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd) and JM Financial. The registrar for the issue is Link Intime India Private Ltd.

Ixigo IPO offer size

Ixigo IPO (Le Travenues Technology Ltd) comprises a combination of fresh issue of 1.29 crore shares aggregating to ₹120 crore and an offer for sale of 6.67 crore shares aggregating to ₹620.1 crore.

The company has reserved 75% of the net offer for the Qualified Institutional Buyers (QIBs). The company has reserved 10% of the offer for retail investors and the remaining 15% of the offer has been set aside for the Non-Institutional Investor (NII).

Ixigo IPO dates

Ixigo IPO subscription window will remain open from June 10 to June 12. Ixigo IPO share allotment of shares is likely to be finalised by June 13.

On June 14, shares will be credited to the Demat accounts of successful bidders and refunds will be initiated for bidders who have not been allotted shares against their bids. Shares of Le Travenues Technology Ltd are expected to be listed on the NSE, BSE on June 18.

Ixigo IPO financials

Ixigo’s revenue from operations for the nine months ended December 31, 2023, stood at ₹497.1 crore while the company’s Profit After Tax (PAT) stood at ₹65.71 crore. For the same period, the company’s net worth stood at ₹437.13 crore.

The company’s revenue from operations for FY23 grew 34% to ₹517.57 crore compared to ₹384.94 crore in the preceding fiscal. The travel company turned profitable in the financial year ended March 31, 2023, as the company posted a profit of ₹23.40 crore against a loss of ₹21.09 crore in FY22. The company’s net worth for FY23 surged 9% to ₹373.76 crore compared to ₹342.69 crore in the preceding financial year.

Ixigo IPO objective

The company plans to use the money raised via the IPO for partly funding its working capital requirements, making investments in cloud infrastructure and technology. The company also plans to use the money raised for funding inorganic growth through unidentified acquisitions.

Le Travenues Technology strengths and weaknesses

The company is a leading online travel agency and it has significant penetration in the underserved ‘next billion user’ segment.

Next billion users’ refers to an existing as well as anticipated market of “new to internet” users that includes all non-Tier I market demand. This segment comprised 60%-65% of the overall travel market in FY23.

The company’s future growth is expected to be aided by Artificial Intelligence (AI) and technology-driven operations. The leading online travel platform has already deployed AI-backed tools and features like ixigo PLAN, an intelligent AI-based trip planner; ixigo Assured Flex for booking fully flexible airline or train tickets; and an AI driven personal travel assistant, TARA.

The company’s comprehensive mix of product and services spanning across trains, flights, buses and hotels could help the online travel platform in more monetisation leveraging operations.

So far as risks are concerned, the company has limited experience of operating as an OTA. It initially started operations as a meta search website. Any adverse impact on the travel industry influenced by multiple factors, including global uncertainties, may negatively affect the company’s operations.

The online travel agency segment is a highly competitive one and the company faces competition from big players like MakeMyTrip, EaseMyTrip, Yatra.com, Cleartrip, PayTM, Amazon, RailYatri, Goibibo, and Redbus.

About Le Travenues Technology Ltd

Le Travenues Ltd is an online travel agency (OTA) founded in 2006. The company enables travellers to book train, flight, bus tickets and hotels through its platforms under the brand name ‘Ixigo’. The travel agency’s various services include: PNR status and confirmation predictions, train seat availability alerts, train running status updates and other such related services.

The various OTA platforms offered by ixigo include: ixigo trains and Confirmtkt app, ixigo-flights mobile app and the Abhibus app. The company claims that it has the highest app usage among OTAs with a cumulative 83 million monthly active users, as per data.ai in September 2023.

The company currently employs 486 people on a full-time basis and has 4 consultants working under consultancy agreements.

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