Ixigo IPO Turns Multibagger: Shares Jump 112% From Issue Price; Previous Acquisitions Cross Rs 100 Cr

The shares of Le Travenues Technology, the parent company of popular online travel platforms Ixigo and Abhibus, soared by 19% on Wednesday, reaching an intraday high of Rs 197.50 on the National Stock Exchange (NSE). This surge marks a 112% increase from its initial public offering (IPO) price of Rs 93 per share, an extraordinary feat since its listing on Tuesday.

Le Travenues Technology's shares experienced a stellar debut on Dalal Street on Tuesday, closing at Rs 165.72 per share after the first day of trading. The momentum continued into Wednesday's session, with the share price opening at Rs 183 and rapidly climbing to the day's peak of Rs 197.50. This significant leap means that early investors who acquired shares at the IPO price have seen their investments more than double in value.

Such a dream debut is a rare phenomenon, reflecting high investor confidence and strong market interest in the company. The robust performance extended over two days highlights the sustained enthusiasm surrounding Le Travenues Technology's market entry.

Despite the impressive rally, market experts caution potential investors about the stock's high valuation. The IPO was initially offered at a higher valuation, which has since doubled, suggesting limited potential for further upside. Experts advise fresh investors with a long-term perspective to wait for a market correction, recommending a target price range of Rs 140 to Rs 145 before considering entry.

Le Travenues Technology plans to use the net proceeds from the public offering to boost its working capital, invest in technological advancements, fund acquisitions, and pursue other strategic initiatives. This forward-looking approach aims to solidify its market position and drive future growth.

Le Travenues Technology is at the forefront of transforming travel planning and booking in India. The company leverages technologies such as artificial intelligence (AI), machine learning (ML), and data science to enhance user experience on its platforms. Travellers can book train, flight, and bus tickets, as well as hotels, through Ixigo and Abhibus. Additional features include real-time updates on train and bus statuses, personalized travel recommendations, instant fare alerts, and automated customer support services.

The company's success has also benefited other entities in the travel sector. Bengaluru-based Confirmtkt, an online train ticketing platform, saw its founders Sripad Vaidya and Kotha Dinesh Kumar's holdings in Ixigo surpass the Rs 100-crore mark. They sold Confirmtkt to Ixigo in February 2021, during the early recovery phase post the first wave of the pandemic. Currently, each holds 7.98 million shares in Ixigo.

Similarly, Ixigo acquired Hyderabad-based bus ticketing company AbhiBus in a slump sale later that year. This strategic acquisition integrated AbhiBus's employees and founder Sudhakar Reddy Chirra into Ixigo. The shares issued to AbhiBus in the transaction also crossed the Rs 100-crore mark, highlighting the successful integration and growth post-acquisition.

Le Travenues Technology's IPO has been a windfall for its early investors. SAIF Partners (now Elevation Capital) reported a 22-fold return on its Rs 63 crore investment, including the sale of shares worth Rs 181 crore in the IPO and remaining shares valued at Rs 1,118 crore. Peak XV (formerly Sequoia Capital India) saw a 13-fold return on its initial Rs 67 crore investment, with shares worth Rs 121 crore sold in the IPO and remaining holdings valued at Rs 745 crore.

Micromax, another significant early investor, achieved a 17-fold return on its Rs 19 crore investment, selling shares worth Rs 51 crore during the IPO. Even investors who held onto their shares post-IPO are sitting on substantial values, though exact returns could not be determined due to unavailable purchase price data.

Singapore's sovereign wealth fund GIC, through its managed fund Gamnat, holds 36.5 million shares in Ixigo, currently valued at Rs 592 crore. GIC's various investment arms maintain significant positions in multiple Indian startups, including Zomato, Delhivery, and Nazara. Similarly, venture debt fund Trifecta holds 11.57 million shares, currently worth Rs 187 crore.

The travel technology company's Rs 720 crore public offer was met with overwhelming enthusiasm, being subscribed 98.34 times. Non-Institutional Investors (NIIs) led the charge, subscribing to their allotted portion 110.5 times, reflecting strong demand and high investor confidence.

The remarkable market performance of Le Travenues Technology reflects the growing investor appetite for technology-driven travel solutions in India. While the current valuation suggests caution for new investors, the company's initiatives and technological prowess position it well for long-term growth.