Ixigo IPO Opens Today: Key Details, GMP, and Should You Subscribe?

by | Jun 10, 2024 | 0 comments

Ixigo IPO Today, June 10th marks the opening of the initial public offering (IPO) of Le Travenues Technology Ltd which is commonly known as ixigo. Being India’s leading online travel booking company; it enables travellers to plan, book and manage their trips across different modes of transport and accommodation. Here we will discuss key details about ixigo IPO , its grey market premium (GMP) and whether or not you should subscribe for it.

Ixigo IPO Details

Key Dates and Price Band

  • IPO Opening Date: June 10
  • IPO Closing Date: June 12
  • Allotment Finalisation Date: June 13
  • IPO Listing Date: June 18

The price band for ixigo IPO has been set at ₹88 to ₹93 per equity share. The lot size of this ipo is 161 shares and minimum investment required by retail investor is ₹14,973. At upper price band ,the size of IPO will be ₹740.10 crore which includes fresh issue of equity shares aggregating up to ₹120 crore and offer for sale (OFS) component aggregating up to ₹620.10 crore by selling shareholders.

Financial Overview

Last week before the start of its Initial Public Offering(IPO), Le Travenues Technology Ltd raised ₹333 crores from anchor investors . Below are the plans stated by company on usage net issue proceeds:

  • Part funding working capital requirements
  • Investing in cloud infrastructure & technology
  • Funding inorganic growth through unidentified acquisitions
  • General corporate purposes

IPO Managers and Registrar

  • Book Running Lead Managers : Axis Capital, DAM Capital Advisors Limited,JM Financial
  • IPO Registrar : Link Intime India Private Limited

Read Also: ixigo IPO: Price Band Set at Rs 88-93 Per Share

Ixigo IPO GMP Today

Grey market premium (GMP) of ixigo IPO today is ₹23 which means shares are trading at ₹116 per share in grey market. This shows a premium of 24.73% over the issue price of ₹93 per equity share.

Should You Subscribe to the Ixigo IPO?

Analyst Recommendations

Most analysts have recommended subscribing for the ixigo IPO based on its leadership in market share within online travel segment , industry tailwinds and strong future growth prospects. Here’s what some top brokerages said:

Anand Rathi

Anand Rathi has given “Subscribe – long term” rating to the ipo stating that it holds leadership position along with brand recall and scalability of business. The company is valued at P/E multiple of 154x FY23E (post-issue) and market-cap/sales ratio of 7.2x which is lower than peers such as Yatra Online (192x) or Easy Trip Planners (54.5x).

BP Equities

BP Equities recommends “Subscribe” given rich valuations (P/E of 163.2x FY23E) but nature of platform & large industry opportunity size makes it compelling investment case . Revenue, EBITDA & PAT grew at CAGR of 92.3%,194.9% and 76.2% respectively during FY21-23.

Read Also: How to Begin Equity Investment

Canara Bank Securities

Canara Bank Securities advises long-term investors to subscribe for ixigo ipo considering company’s market leadership in online travel segment; shift from offline to online booking etc.Addition new routes will improve connectivity further strengthening its position

Conclusion

The “ixigo” IPO is the right call for investors because of their strong market hold, healthy financial growth and rosy industry prospects. A good number of analysts have recommended it, a positive GMP is a sure sign that the market wants in on this one too. But before putting their name down for some shares, people need to think about how much risk they can take and when will be the best time to cash out.

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