Ixigo IPO: Travel aggregator refiles draft papers to raise ₹120 crore via fresh issue
Upstox
3 min read • Updated: February 15, 2024, 1:58 PM
Summary
In its previous attempt in August 2021, Ixigo had sought to raise ₹1,600 crore through the IPO. The offer that time consisted of a fresh issue of shares worth ₹750 crore and an OFS of shares worth ₹850 crore.
Le Travenues Technology Ltd, which runs and operates online travel aggregator (OTA) brand Ixigo, has refiled papers for its initial public offering (IPO) after shelving the plan last time.
The company on February 14 filed a new draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an IPO with a much smaller fresh issue size.
As per the latest DRHP, the Ixigo public issue comprises fresh issuance of shares worth ₹120 crore and an offer for sale (OFS) of up to 66.67 million equity shares by existing shareholders.
In its previous attempt in August 2021, Ixigo had sought to raise ₹1,600 crore through the IPO. The offer that time consisted of a fresh issue of shares worth ₹750 crore and an OFS of shares worth ₹850 crore.
Though Sebi had allowed the company to launch the IPO in June 2023, Ixigo shelved its plans due to unfavourable macroeconomic conditions.
Ixigo IPO fresh issue and OFS details
This time around, majority of shares in the Ixigo IPO will be offloaded by Elevation Capital (formerly SAIF Partners) and Peak XV Partners Investments V.
While Elevation Capital is selling up to 19.44 million equity shares in the company, Peak XV Partners will offload 13 million shares through the OFS.
Ixigo’s co-founders Aloke Bajpai and Rajnish Kumar would also sell 11.95 million shares each. Other OFS participants would include Micromax Informatics, Placid Holdings and Catalyst Trusteeship as the trustee of Madison India Opportunities Trust Fund and Madison India Capital HC.
Le Travenues Technology has appointed Axis Capital, DAM Capital, and JM Financial as the book-running lead managers of the issue.
Ixigo IPO purpose
In its DRHP, Ixigo said that it plans to use ₹45 crore from the IPO proceeds for its working capital requirements, while another ₹25.8 crore would be utilised for investments in tech, data science, artificial intelligence and customer engagement.
Balance amount would be taken up for acquisitions, strategic initiatives and other general corporate purposes, the company had added.
According to reports, Le Travenues Technology may also consider raising up to ₹24 crore in its pre-IPO placement round.
About Ixigo and financials
Ixigo’s fresh attempt to go public comes amid its improved operating revenue and profitability. For the nine months ending December 2023 (Apr-Dec 2023), Ixigo posted ₹491 crore in revenue from operations with a profit of Rs 65.7 crore.
Incorporated in 2007, Ixigo is an AI-based travel platform that earns revenue from the sale of various travel services along with advertising services on its website. Its peers include names like EaseMyTrip, MakeMyTrip, Cleartrip and Yatra.
According to the draft papers, the company posted a 32% jump in its revenue from operations during FY 2022-23 to ₹501 crore compared with ₹379.6 crore in FY 2021-22.
The financial year FY23 was significant as the company turned profitable with ₹23.4 crore profit compared with a loss of ₹21 crore in FY22.
In the current financial year till December 2023, the company’s net profit has jumped more than two-and-a-half times to ₹65.7 crore compared with ₹18.66 crore in the year-ago period. Revenue from operations during the nine-month period, meanwhile, rose 35% to ₹491 crore from ₹364.3 crore a year ago.