Ixigo IPO: Public Issue To Go Live On June 10; Price Band Set Below Rs 100/Sh; Don't Miss Out On Details

Le Travenues Technology, the parent company of the popular travel platform Ixigo, is poised to launch its initial public offering (IPO) from June 10 to June 12, 2024. The IPO price band is set between Rs 88 to Rs 93 per equity share, with the company aiming to raise Rs 740 crore through this public offer. This includes a fresh equity sale of Rs 120 crore and an offer for sale (OFS) of up to 6.66 crore shares, aggregating Rs 620 crore.

The stakeholders participating in the OFS include notable names such as SAIF Partners, Peak XV Partners, Ixigo's founders Aloke Bajpai and Rajnish Kumar, Micromax Informatics, and Placid Holdings. The net proceeds from the IPO are earmarked for enhancing working capital, investing in technology, supporting inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.

The IPO will follow the book-building process, with the allocation structured as follows:
Up to 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs, and at least 10% for retail investors.

Retail investors can bid for a minimum lot size of 161 shares, translating to a minimum investment of Rs 14,973. For NIIs, the minimum investment is set at 14 lots (2254 shares), totalling Rs 2,09,622.

Axis Capital, DAM Capital, and JM Financial are the book-running lead managers for the issue, with Link Intime India serving as the registrar. The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in February 2024 and received approval in May 2024.

Founded in 2007, Ixigo has carved out a significant niche in the Indian travel industry by offering a comprehensive platform that enables travellers to plan, book, and manage their trips across various modes of transportation and accommodation. Initially launched as a flight meta-search website, Ixigo expanded its services to include train information and bookings in 2013 with the Ixigo Trains app. This app revolutionized train travel for Indian users by providing real-time updates and utility services related to their journeys.

In 2016, Ixigo further diversified by entering the bus ticketing market, a move boosted by its acquisition of AbhiBus and a strategic minority stake in FreshBus. The latest addition to its portfolio came in December 2023, with the launch of hotel booking services, allowing users to compare and book hotels both domestically and internationally.

Ixigo's growth has been nothing short of phenomenal. By the end of March 2023, the platform boasted 429.38 million annual active users and facilitated 49.07 million transactions in fiscal 2023 alone. Its registered user base reached 213.21 million by December 2023, showcasing the platform's widespread acceptance and reliability among travellers.

In the nine months ending December 31, 2023, Ixigo's OTA platforms processed 42 million transactions. Both the Ixigo Trains app and ConfirmTkt app ranked among the top 10 travel apps in India, with the Ixigo Trains app securing the 2nd spot and ConfirmTkt the 7th, as per the company's DRHP, citing a F&S Report.

Ixigo has demonstrated strong financial resilience and growth. The company experienced a revenue surge from Rs 1,355.66 million in fiscal 2021 to Rs 5,012.50 million in fiscal 2023, reflecting a compound annual growth rate (CAGR) of 92.29% between fiscal 2021 and fiscal 2023. For the nine months ending December 31, 2023, Ixigo's revenue from operations reached Rs 4,910.21 million.

Despite a challenging fiscal 2022, where it posted a restated loss before tax of Rs 176 million, Ixigo rebounded strongly in fiscal 2023, recording a restated profit before tax of Rs 206.74 million. This positive trend continued into the nine months ending December 31, 2023, with a restated profit before tax of Rs 485.03 million.

Ixigo's vision includes leveraging advancements in artificial intelligence, machine learning, and data science to enhance the user experience on its OTA platforms. The funds raised from the IPO will enable Ixigo to invest further in technology, scale its operations, and explore strategic acquisitions that align with its growth objectives.