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Retail buyers oversubscribe Ixigo IPO within hours on debut

1 week ago 17

Retail subscribers have oversubscribed the initial public offering (IPO) of Le Travenues Technology, the parent company of online travel platform Ixigo, by 2.22 times within hours of its launch.

Retail investors bid for 17.6 million shares compared to the 7.9 million shares available, as of 11:42 AM on Monday, BSE data showed. The non-institutional segment subscribed 0.47 times, while the qualified institutional buyers (QIB) are yet to show significant activity.

The IPO includes a fresh equity issue of Rs 120 crore and an offer for sale (OFS) of up to 66.6 million shares. Existing shareholders such as Elevation Capital, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will partially offload their stakes through the OFS.

Prior to the IPO, Ixigo raised around Rs 333 crore from anchor investors. Marquee investors in Ixigo's anchor book include Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation.

The company completed a pre-IPO secondary placement worth approximately Rs 176.2 crore a day before the anchor book opening. During this secondary sale, Elevation Capital, Peak XV Partners, Micromax Informatics and Madison India sold 18.9 million shares at Rs 93 each, which is the upper end of the company’s IPO price band. The shares were purchased by new investors including Ashoka India Equity Investment Trust, Tata Mutual Fund, Bay Capital and Steadview Capital.

Ixigo has announced a price band of Rs 88-93 per share, with investors able to bid for 161 shares per lot and in multiples thereafter. Of the total IPO, 75% was reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

Founded in 2007, Ixigo offers services for booking train, flight, and bus tickets, along with various utility tools such as train PNR status and confirmation predictions, and train seat availability updates. The platform also provides personalised recommendations and automated customer support for users. It recently forayed into the hotel segment.

For the nine months ended December 2023, Ixigo's revenue from operations increased by 34.9% to Rs 491 crore from Rs 364.3 crore in the same period the previous year. Net profit rose to Rs 65.7 crore from Rs 18.7 crore in the corresponding year-ago period.

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