Ixigo makes stellar debut, shares hit 20% upper circuit after listing at over 48% premium

After listing at an over 48% premium to the initial public offering (IPO) price, Ixigo shares extended the gains over the day to eventually hit the 20% upper circuit at around noon.

The ₹740.1-crore Ixigo IPO, which was open from June 10 to June 12, had received strong investor interest at the time of subscription. The issue was overbooked by more than 98 times.

The quota reserved for non-institutional investors (NIIs) was subscribed 110.5 times, while the qualified institutional buyers’ (QIBs) segment was overbid by 106.7 times. The retail investors’ category, meanwhile, was oversubscribed by almost 55 times.

The price band of the IPO was fixed at ₹88-₹93 per share. The Ixigo offer comprised a fresh issuance of shares worth ₹120 crore and an offer-for-sale (OFS) of 66.68 million shares, aggregating to ₹620 crore.

The selling shareholders in the OFS category included Peak XV Partners Investments V, SAIF Partners India IV, Rajnish Kumar, Aloke Bajpai, Placid Holdings, Micromax Informatics, Madison India Capital HC and Catalyst Trusteeship.

The company said that the funds generated from the fresh issuance portion would be utilised to strengthen cloud infrastructure and technology, for working capital requirements and inorganic growth, and for general corporate purposes.

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