Ixigo IPO: Public Issue Subscribed 15x On Day 3; GMP Hints Premium Listing; Check Subscription Status

Le Travenues Technology Limited, the parent company of renowned travel platform ixigo, launched its much-anticipated initial public offering (IPO) on June 10, 2024. With the subscription window closing on June 12, investors are rushing to secure their stake in the travel tech industry. The response to the ixigo IPO has been extraordinary, with subscription figures soaring and grey market sentiments remaining buoyant.

After just two days of bidding, the subscription status for the ixigo IPO has surpassed all expectations, signalling a resounding vote of confidence from investors. The grey market, despite experiencing fluctuations in the secondary market, has remained steady, with ixigo shares commanding a premium of Rs 25.

Market observers note that the grey market premium (GMP) for ixigo today stands at Rs 25, representing a Rs 1 increase from the previous day's GMP of Rs 24. This stability in the grey market amidst choppy sessions in the secondary market reflects the strong subscription status of the ixigo IPO, driving investor confidence.

The subscription status for the ixigo IPO has been impressive across all segments. After two days of bidding, the book build issue was oversubscribed 9.33 times overall, with the retail portion witnessing an astonishing oversubscription of 18.73 times and the Non-Institutional Investor (NII) segment at 20.14 times. Meanwhile, the Qualified Institutional Buyer (QIB) portion saw a subscription of 0.79 times.

On the third day of bidding, at 10:48 am, the subscription status surged to an impressive 14.88 times overall, with the retail portion oversubscribed by 25.83 times. The NII segment witnessed an overwhelming subscription of 35.69 times, while the QIB portion experienced a modest increase to 0.81 times.

The ixigo IPO, with a price band set between Rs 88 to Rs 93 per equity share, aims to capitalize on the optimistic market sentiment and propel its trajectory to new heights. The book build issue, slated for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), presents investors with an opportunity to participate in the travel industry.

A significant portion of the IPO proceeds will be allocated towards fresh issues and offers for sale (OFS), with Rs 620.10 crore reserved for OFS and Rs 120 crore earmarked for fresh issues. This allocation allows existing stakeholders to divest their holdings while injecting fresh capital into the company, fueling its expansion and innovation efforts.

Founders Alok Bajpai and Rajnish Kumar stand to benefit substantially from the IPO. Bajpai, holding 3.08 crore shares, is poised to witness the market value of his shares soar to Rs 286 crore, while Kumar's 3.22 crore shares will be valued at approximately Rs 299.22 crore.

The successful raising of Rs 333 crore from anchor investors, including renowned names such as Nomura, Morgan Stanley, and HDFC MF, further reflects investor confidence in ixigo's growth potential.

The IPO allocation, structured with 75% reserved for QIBs, 15% for non-institutional investors, and 10% for retail investors, ensures a balanced investor base and broad market participation. Market analysts have unanimously hailed ixigo's IPO, citing its leadership position in the online travel segment, favourable industry trends, and robust future growth prospects.

The infusion of capital from the IPO will enable ixigo to boost its technological infrastructure, support expansion initiatives, and pursue strategic acquisitions, thereby solidifying its market position and driving sustained growth in the years to come.