ixigo, the travel aggregator, to offload 10% stake to Prosus for ₹1,296 crore

In a regulatory filing, Le Travenues Technology Ltd said it is offloading a 10.1% stake to Prosus affiliate MIH Investments One B.V. for ₹1,295.56 crore ($146 million).

The board of directors of ixigo have approved the issuance of 4,62,70,092 equity shares for Rs 1,295.56 crore, representing 10.10 per cent of the post-issue paid-up equity share capital, by way of preferential issue on a private placement basis to MIH Investments One B.V, the filing said.

Prosus will invest ₹1,295.56 crore ($146 million) for a 10.1% stake in ixigo on a fully diluted basis, corresponding to a share price of Rs 280 per share, a slight premium over the 10-day VWAP (Volume Weighted Average Price) of ixigo as of the relevant date for the transaction, the filing said.

In a statement, Prosus said it is "pleased to share that the Board of ixigo ... has approved its offer of a primary investment of ₹1,295.56 crore ($146 million) for a 10.1% stake on a fully diluted basis in ixigo".

ixigo intends to utilise the proceeds for organic and inorganic growth opportunities, working capital needs, and general corporate purposes.

The travel booking platform plans to utilise up to 25% of the proceeds (up to ₹323.89 crore) towards organic growth initiatives, including new Artificial Intelligence (AI) platforms, products, and services; technology, including cloud infrastructure and software expenditure; supply expansion for its hotels OTA (online travel agencies) business; and advertisement and branding initiatives.

Besides, up to 25% of the proceeds is proposed to be utilised towards unidentified acquisitions and inorganic growth opportunities, directly by the company or through its subsidiaries.

Out of the remaining 50% proceeds, ixigo proposes to utilise up to 25% towards meeting its working capital requirements driven by growth in its OTA business across flights, trains, buses and hotels, and the other 25% towards meeting corporate exigencies and contingencies, rental payments and administrative expenses.

Prosus invests in high-growth markets, with a significant focus on India, Latin America, and Europe.

A long-term investor in India with over $8.6 billion in capital deployed to date, Prosus has a diversified investment portfolio spanning across sectors such as e-commerce, food delivery, travel, payments & fintech.