Ixigo IPO: Public Issue Subscribed 4x On Day 2; GMP Hints Premium Listing; Check Subscription Status

The ongoing Initial Public Offering (IPO) of ixigo, which commenced on June 10, 2024, has witnessed an impressive reception from primary market investors. The public issue, valued at Rs 740.10 crore, is slated to remain open until June 12, 2024. ixigo has set the IPO price band at Rs 88 to Rs 93 per equity share, with the book build issue slated for listing on both BSE and NSE. Combining fresh problems and offers for sale (OFS), the company has earmarked Rs 620.10 crore for OFS and Rs 120 crore for fresh issues.

The anticipation surrounding the Initial Public Offering (IPO) of ixigo, a leading name in the online travel segment, has transformed into excitement as investors rush to secure their stake in the company's future. Since its opening on June 10, 2024, the ixigo IPO has captured the attention of primary market investors.

With the IPO price band set between Rs 88 to Rs 93 per equity share, ixigo aims to capitalize on the buoyant 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 a unique opportunity to partake in the journey of a digital disruptor in the travel industry.

Combining fresh issues and offers for sale (OFS), the ixigo IPO reserves Rs 620.10 crore for OFS and earmarks Rs 120 crore for fresh issues. This blend allows existing stakeholders to divest their holdings while injecting fresh capital into the company's coffers, fueling its expansion and innovation efforts. The allocation of resources towards funding capital requirements, investing in cloud infrastructure and technology, and exploring inorganic growth through strategic acquisitions reflects ixigo's focus.

Despite the volatility that often characterizes the Indian stock market, the grey market for ixigo IPO has remained remarkably stable. The grey market premium (GMP) for ixigo IPO has held steady at Rs 24. This resilience in the face of market fluctuations augurs well for the success of the book build issue, indicating a strong appetite among investors for ixigo's shares.

On the second day of bidding, at 12:03 pm, the subscription status of the ixigo IPO reached an impressive 4.11 times overall, with the retail portion oversubscribed by 11.33 times. The Non-Institutional Investor (NII) segment witnessed a subscription of 6.74 times, while the Qualified Institutional Buyer (QIB) portion was subscribed 0.39 times.

Both founders, Alok Bajpai and Rajnish Kumar, stand to reap substantial returns from the IPO, reflecting the culmination of years of dedication and perseverance in building ixigo into a formidable player in the travel industry.

Alok Bajpai, holding 3.08 crore shares, is poised to witness the market value of his shares soar to Rs 286 crore, while Rajnish 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 includes renowned names such as Nomura, Morgan Stanley, and HDFC MF.

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 bolster its technological infrastructure, support expansion initiatives, and pursue strategic acquisitions, thereby solidifying its market position and driving sustained growth in the years to come. The overwhelming response to the ixigo IPO shows the investor community's confidence in the company's vision and potential.