Ixigo gains 19% on second day of listing; doubles investors’ money in two sessions

On Wednesday, June 19, the Ixigo stock surged as much as 19% to hit an intraday high of ₹197.5 apiece on the NSE. This was 112% higher than its IPO price of ₹93 per share.

Ixigo shares made a strong debut on the stock exchanges on Tuesday at a 48% premium. Over the day, the stock gained another 20% to close at ₹165.72 apiece, up 78% from its issue price.

Media reports said that Nomura picked up a stake in Le Travenues Technology Ltd totalling ₹106.55 crore through two of its entities. Nomura Funds Ireland bought 45.5 lakh shares worth ₹72.39 crore at an average price of ₹159.09, while Nomura Trust and Banking Co acquired 21.47 lakh shares worth ₹34.16 crore at an average price of ₹159.09 per share via open market transactions.

The ₹740.1-crore Ixigo IPO was open for subscription from June 10 to June 12. The public issue had received strong investor interest, with the issue being overbid by more than 98 times.

The IPO price band 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.

Shareholders of the company like Peak XV Partners Investments V, SAIF Partners India IV, Rajnish Kumar, Aloke Bajpai, Placid Holdings, Micromax Informatics, Madison India Capital HC and Catalyst Trusteeship offloaded stake in the travel technology firm through offer-for-sale (OFS) in the IPO.

The company said that the funds generated from the fresh issuance portion would be utilised to strengthen cloud infrastructure and technology. The leading online travel agency will also utilise a portion of the funds for working capital requirements and inorganic growth, and for general corporate purposes.