Ixigo shares drop nearly 10% after stellar post-IPO debut

Shares of Le Travenues Technology Ltd, which operates travel tech platform Ixigo, dropped nearly 10% during the early trading hours on Thursday, June 20.

Ixigo shares were down nearly 10% at ₹166.61 apiece on the NSE during the first hour of trading. As the session progressed, the stock partially recovered and was trading 6.5% lower at ₹172.85 at 11:12 am.

Profit-booking could be one of the reasons behind the sell-off, analysts said. The shares had debuted on the NSE at ₹138.10, which was up 48% as against the issue price of ₹93.

The day after listing, on June 19, the stock rose 20% and closed at ₹184.86 apiece.

Ixigo IPO received strong response

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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