ixigo IPO Day 3: Latest GMP, Subscription Status, and Review – Should You Apply?

by | Jun 12, 2024 | 0 comments

On June 10, 2024, Le Travenues Technology Limited opened its IPO subscription for the travel brand ixigo that came to the public. This blog presents the lastest details about gray market premium(GMP), subscription status and what experts have said regarding whether one should invest in the ixigo IPO as it reaches the end of third day.

ixigo IPO Details

Key Dates

  • IPO Opening Date: June 10, 2024
  • IPO Closing Date: June 12, 2024
  • Allotment Finalization Date: June 13, 2024
  • IPO Listing Date: June 18, 2024

Price Band and Lot Size

The price band of ixigo IPO is ₹88-₹93 per share. The lot size is comprised of a total of161 shares while retail investors are required to make a minimum investment of ₹14,973. The overall size of the IPO amounts to INR7.401 billion with fresh issuance up to INR1.200 million (12 crores) and offer for sale (OFS) worth INR6.2 billion.

ixigo IPO GMP Today

This Tuesday’s grey market premium for Ixigo was Rs 24 per share but today’s one has risen by Rs 1 to –Rs 25 per share showing that there is still demand even after recent fluctuations in secondary markets.

GMP Today for Ixigo:

Today’s Gray Market Premium (GMP) on Wednesday is Rs., , higher than Tuesday’s GMP of Rs24 per share which indicates mild increase despite volatility in secondary markets.

ixigo IPO Subscription Status as at Day 3 at 11 :00AM

  • Overall Subscription:15.67times
  • Retail Portion:26.94 times
  • Non-Institutional Investors (NII) Segment:37.88 times
  • Qualified Institutional Buyers (QIB) Portion:0.81times

This reflects high investor interest and confidence in the ixigo IPO as retail and NII segments receive a strong response.

ixigo IPO Review

Financial Performance

During FY2021-23, Revenue, EBITDA and PAT for ixigo have grown at CAGR of 92.3%, 194.9% and 76.2% respectively according to BP Equities. At the upper end of the price band, the issue is valued at P/E of 163.2x based on FY2023 earnings. However, despite rich valuations, BP Equities recommends subscribing to this IPO because platform nature and large industry opportunity size are key drivers sustaining profit growth.

Ajcon Global Services Review

Ajcon Global Services has also assigned a ‘subscribe’ rating on this IPO by Ixigo . At an upper price band of INR93 per share, it is priced at P/E multiple of 39.91x its post-IPO 9MFY24 annualized EPS of INR2.33and multiple of 16909x its post-IPO FY23 EPS of INR0.55.Their reasons behind this include:

  1. Significant market share across various segments.
  2. As at September 30,2023 , leading online travel agency (OTA) for the following billion users with highest Monthly Active Users for mobile apps among key OTAs .
  3. Advanced & scalable technology platforms addressing travelers needs.
  4. Comprehensive mix of product & service offerings across trains, flights, buses & hotels .
  5. Highest revenue per employee among peers at Rs92 lakhs.
  6. Industry leading monthly active users ad average session per user.
  7. Flights expected to grow fastest within Indian travel industry with highest category CAGR upto12% byFY28..
  8. Non-Tier I cities seeing improved travel and internet infrastructure in India driving growth.
  9. Multiple apps for customization of users’ experiences.

Is It Worthwhile to Subscribe to IPO of ixigo?

Subscribing IPO in ixigo is recommended by most analysts mainly because of the company’s strong market position, excellent growth in financials and favorable industry trends. In addition, the high GMP and good subscription numbers are indicative of strong investor interest. However, potential investors should consider their risk profile as well as their investment horizon.

Conclusion

ixigo has become one of the biggest names in online travel space and its financial performance is also impressive which makes the ixigo IPO an attractive investment proposal. Long term investors can benefit from subscribing to this IPO given that it has got positive recommendations from analysts and steady grey market sentiment. Ensure you assess your financial goals together with your risk tolerance before applying.

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