Ixigo IPO: Travel tech company raises ₹333 crore from anchor investors ahead of public issue

Ixigo, the Gurugram-based travel tech company which will launch its initial public offering (IPO) on June 10, raised ₹333 crore from anchor investors last week.

Some of the top investors who subscribed to the anchor book include Tata Investment Corporation, the Government of Singapore, HDFC MF, Motilal Oswal MF, Nomura, Morgan Stanley, and 3P India Equity Fund.

“The IPO Committee of the company at its meeting held on June 07, 2024, in consultation with Axis Capital Limited, DAM Capital Advisors Limited and JM Financial Limited (Book Running Lead Managers), have finalised allocation of 35,811,405 equity shares, to anchor investors at anchor investor allocation price of ₹93/- per equity share," Ixigo said in a regulatory filing on Friday, June 7.

Of the total 3.58 crore shares allocated to anchor investors, 12.08 crore or 33.75% was allotted to four domestic mutual funds - SBI Magnum Children's Benefit Fund, HDFC Mutual Fund, Whiteoak Capital Flexi Cap Fund, and Motilal Oswal Large Cap Fund. These mutual had applied through a total of seven schemes.

Ixigo IPO: Key details

Ixigo is scheduled to be open for bids from June 10 to June 12, 2024. The price band for the offer is set at ₹88 to ₹93 per equity share. The company plans to raise ₹740 crore.

The IPO will have an issue of fresh equity shares worth ₹120 crore. The offer for sale (OFS) of up to 6.66 crore shares for sale is also scheduled. Stakeholders like SAIF Partners, Peak XV Partners, and prominent individuals like Aloke Bajpai and Rajnish Kumar will be offloading a few portions of their holdings with the company.

The IPO will be conducted with a predefined allocation for different investor categories. Qualified institutional buyers (QIBs) will have access to up to 75% of the net issue size, while non-institutional investors (NIIs) will be allocated 15% of the issue. Retail investors, a primary segment for any IPO, will have a minimum assured allocation of 10% of the net issue.

The minimum investment amount for retail investors is ₹14,973 with a minimum lot size of 161 shares. On the other hand, NII investors will have a minimum investment threshold of ₹2,09,622 for a minimum lot size of 2254 shares.

How Ixigo plans to use the funds?

The funds raised through this IPO will be used for various initiatives laid by the company. Ixigo aims to utilise the capital to meet working capital requirements, enhance the platform by investing in technological advancements, and develop growth opportunities through strategic acquisitions and partnerships. Apart from this, a portion of the capital will also be used for general corporate purposes.

About Ixigo

Ixigo allows Indian travellers to plan, book, and manage their trips across rail, air, buses, and hotels. The company’s annual active users stood at 429.38 million, with 49.07 million transactions booked through its OTA platforms in FY23, as of March 31, 2023. The OTA platforms facilitated 42 million transactions during the nine months ending December 31, 2023.

To know more about IPOs listing, schedule and upcoming IPOs, click here