EaseMyTrip To Come Up With Rs. 510 Crore IPO By March End

Companies from across sector are gearing up to tap the current market momentum that is flush with liquidity. And amid it, Easemytrip, at a time when travel has taken a hit amid the Covid 19 outbreak, is planning to launch the first in the sector its IPO to amass funds to the tune of Rs. 510 crore by March end.

But the challenge with the company shall remain to persuade investment at a time when travel industry is facing a lot of stress. Nonetheless, the roll out of vaccine and revival in domestic travel is boosting sentiment as well as has raised hopes of a full recovery.

Other than EaseMyTravel, two of the companies from the same sector, namely Yatra and MakeMyTrip have seen overseas listing. The company, eyes to launch IPO by March 31, as its approval from the SEBI for the public issue expires by that time. The company received SEBI's nod for the IPO in January last year. Usually such approvals are for a year's time, but SEBI in view of the pandemic, has extended the time for the issue until March this year for IPOs whose approval would lapse between October and March.

"The impact of covid-19 has significantly reduced travel demand in terms of consumer sentiment and their ability to travel, which has caused airlines and hotels in India and around the world to operate at significantly reduced service levels," the company said in an earlier disclosure to Sebi. Specifically talking about the company, its revenues from booking has seen sharp drop by 62% to December. In the 9 month period until December booking volume reduced to 1.77 million.

EaseMyTrip recorded a net profit of ₹31 crore on a revenue of ₹81.57 crore in the nine months to December, according to documents submitted by the company to Sebi. It had a net profit of ₹35 crore on a revenue of ₹180 crore in the fiscal to March 2020. The promoter stake in the company shall be pared off through an offer for sale (OFS).

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