Ixigo's Parent Firm Raises Rs 333 Crore from Anchor Investors Before IPO

Le Travenues Technology Ltd, the parent company of the popular travel booking platform ixigo, has successfully raised Rs 333 crore from anchor investors, setting a robust foundation for its upcoming initial public offering (IPO). The announcement came on Friday, just days before the public subscription is set to open. Among the notable investors are the Government of Singapore, Morgan Stanley, WhiteOak Capital, and Bay Capital India Find, alongside Tata Investment Corporation, Bajaj Allianz Life Insurance Company, SBI Mutual Fund, and HDFC Mutual Fund. These entities were allocated a total of 3.58 crore equity shares at a price of Rs 93 per share.

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The Gurugram-based company's IPO is scheduled to open on June 10 and will conclude on June 12. It comprises a fresh issue of equity shares worth Rs 120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares, aiming to raise Rs 740 crore at the upper end of the price band of Rs 88 to Rs 93 per share. Prominent shareholders participating in the OFS include SAIF Partners India IV Ltd, Peak XV Partners Investments V, Micromax Informatics Ltd, and several others.

Funds raised from the fresh issue are earmarked for various strategic initiatives. Specifically, Rs 45 crore will support the company's working capital requirements, while Rs 26 crore is allocated for investments in technology advancements such as artificial intelligence and customer engagement platforms. Additionally, a portion of the proceeds will facilitate inorganic growth through acquisitions and cover general corporate expenses.

With a significant portion of the IPO reserved for different investor classes—75% for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors—the company has set a minimum bid quantity of 161 shares per investor. Founded in 2007 by Aloke Bajpai and Rajnish Kumar, ixigo has emerged as a leading online travel aggregator in India. The platform offers comprehensive travel planning and booking services across various modes of transportation and accommodation.

The financial performance of Le Travenues Technology underscores its growth trajectory. For the fiscal year ending March 2023, the company reported a total income of Rs 517 crore, up from Rs 385 crore in the previous year. Notably, it transitioned from a loss of Rs 21 crore to recording a profit of Rs 23.4 crore over the same period. The IPO is managed by Axis Capital, DAM Capital Advisors, and JM Financial as the book running lead managers.

This strategic move marks a significant milestone for ixigo as it seeks to expand its market presence and enhance its service offerings through technological innovation and strategic acquisitions. The strong interest from anchor investors reflects confidence in ixigo's business model and growth prospects in India's rapidly evolving online travel industry.