IPO Details:
- Company: Le Travenues Technology Limited (operating as ixigo)
- Type: Main Board IPO
- Issue Size: ₹740.10 Crore
- Offer: Fresh Issue of ₹120.00 Crore and Offer for Sale (OFS) of ₹620.10 Crore
- Price Band: ₹88 – ₹93 per share
- Issue Open Date: June 10, 2024 (Monday)
- Issue Close Date: June 12, 2024 (Wednesday)
- Expected Listing Date: June 18, 2024 (Tentative)
- Lead Managers: Axis Capital Limited, DAM Capital Advisors Limited, JM Financial Limited (and syndicate members)
- BSE Code (to be assigned after listing): Not available yet
- NSE Code (to be assigned after listing): Not available yet
IPO Timeline
| IPO Open Date: | June 10, 2024 |
| IPO Close Date: | June 12, 2024 |
| Basis of Allotment: | June 13, 2024 |
| Refunds: | June 14, 2024 |
| Credit to Demat Account: | June 14, 2024 |
| IPO Listing Date: | June 18, 2024 |
About Company
ixigo is a leading online travel platform in India, offering a comprehensive suite of travel booking services including flights, hotels, trains, buses, and holiday packages.They also provide travel content like destination guides, travel blogs, and travel forums to assist users in their travel planning process.The company operates a freemium model, generating revenue from commission fees on bookings and through advertising on their platform.
OBJECTIVE
- Part-funding working capital requirements of the company;
- Investments in cloud infrastructure and technology; and
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
POSITIVE
- Growing Online Travel Market: The online travel market in India is expected to experience significant growth in the coming years, creating a potential tailwind for ixigo.
- Strong Brand Recognition: ixigo has established itself as a popular travel platform in India, boasting a large user base and brand recognition.
- Diversified Revenue Streams: Their freemium model with commission fees and advertising revenue provides multiple income sources.
NEGATIVE
- Valuation: Without access to the IPO prospectus, it’s difficult to determine if the offered price band reflects a fair valuation.
- Competition: The online travel space is fiercely competitive, with established players like MakeMyTrip and Cleartrip vying for market share.
- Dependence on Third-Party Suppliers: ixigo relies on partnerships with airlines, hotels, and other travel service providers, which can affect their control over pricing and service quality.pen_spark
So, how does IXIGO IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 678.71 | 585.93 | 538.47 | 185.07 |
| Revenue | 497.10 | 517.57 | 384.94 | 138.41 |
| Profit After Tax | 65.71 | 23.40 | -21.09 | 7.53 |
| Net Worth | 437.13 | 373.76 | 342.69 | 29.94 |
| Reserves and Surplus | 399.83 | 334.17 | 303.22 | -212.60 |
| Total Borrowing | 43.36 | 0.54 | 2.73 | 14.94 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue Growth: The company shows a steady increase in revenue (4.1% year-over-year) in the latest period (ending Dec 2023), indicating some business expansion.
- Profitability: Profit after tax (PAT) has also turned positive in the latest period, demonstrating a return to profitability after a potential loss in the previous year (March 2022).
IXIGO IPO Valuation :
| Earning Per Share (EPS): | ₹0.62 per Equity Share |
| Price/Earning P/E Ratio: | ₹148.87 |
| Return on Net Worth (RoNW): | 15.26% |
| Net Asset Value (NAV): | ₹11.43per Equity Share |
IXIGO IPO – SWOT Analysis
Strengths
- Strong Brand Recognition: ixigo has emerged as a prominent online travel platform in India, boasting a large user base and established brand recognition, especially among digital-savvy travelers.
- Diversified Revenue Streams: Their freemium model offers commission fees on bookings and advertising revenue, providing multiple income sources and potentially mitigating dependence on any single revenue stream.
- Focus on Technology: ixigo’s focus on AI, machine learning, and data science for personalized travel recommendations and a seamless booking experience can be a competitive advantage.
Weaknesses
- Dependence on Third-Party Suppliers: ixigo relies on partnerships with airlines, hotels, and other travel service providers. This can limit their control over pricing, service quality, and potentially impact margins if these partnerships change.
- Profitability Concerns: While ixigo shows revenue growth, their financial performance might indicate declining profitability or a history of losses. A detailed examination of the IPO prospectus is crucial to assess their financial health.
- Limited Track Record as Independent Entity: As a private company until now, ixigo’s public track record as an independent entity is limited. Evaluating their ability to sustain growth and profitability as a public company requires careful analysis.
Opportunities
- Growing Online Travel Market: The online travel market in India is projected for significant growth, positioning ixigo to capitalize on this expanding user base.
- Mobile App Penetration: India’s growing smartphone penetration creates an opportunity for ixigo to expand its mobile app usage and reach a wider audience.
- Expansion into New Markets: ixigo can explore expanding its services to new geographic markets or cater to niche travel segments for further growth.
Threats
- Intense Competition: The online travel space is highly competitive with established players like MakeMyTrip and Cleartrip vying for market share. Aggressive competition can put pressure on pricing and margins.
- Technological Disruptions: Rapid advancements in technology can disrupt the travel industry. ixigo needs to continuously invest in innovation to stay relevant and competitive.
- Economic Downturn: Economic slowdowns can decrease consumer spending on travel, impacting ixigo’s booking volumes and revenue.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of IXIGO IPO :
Peers:
- MakeMyTrip Limited (MMT): A dominant player in the Indian online travel space, offering a comprehensive suite of travel booking services similar to ixigo, including flights, hotels, trains, and holiday packages.
- Cleartrip Private Limited: Another established online travel platform in India, known for its focus on corporate travel solutions alongside leisure travel bookings.
IXIGO IPO GMP
- Grey market premium as on 05-06-2024 = Rs / Share
Disclaimer:
- IPO Grey Market Premium mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
IXIGO IPO
🔴 Live Subscription Status 🔴
12/06/2024 05:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 2,38,74,271 | 0.12 | 0.79 | 106.73 |
| Non Institutional Investors(NIIs) | 1,19,37,134 | 2.78 | 20.11 | 110.25 |
| Retail Individual Investors(RIIs) | 79,58,089 | 6.17 | 18.66 | 53.95 |
| Total | 4,37,69,494 | 1.95 | 9.31 | 98.10 |
FINAL TAKEAWAY
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