Ixigo IPO subscribed over 7.5 times on day 2
The initial public offering (IPO) of Le Travenues Technology, the parent company of travel booking platform Ixigo, has been subscribed over 7.5 times on the second day of bidding. The ₹740-crore IPO received bids for 33,14,42,650 shares against 4,37,69,494 shares on offer, according to BSE data. The retail individual investor category was subscribed nearly 17 times, while non-institutional investors received 15 times as many subscriptions. The component for qualified institutional buyers (QIBs) was subscribed at 76%.
Ixigo IPO receives strong interest from retail investors
The IPO, which opened on Monday, is scheduled to close on Wednesday. The company has already raised ₹333 crore from anchor investors such as Nomura, Morgan Stanley, 3P India Equity Fund, HDFC MF, Motilal Oswal MF, Government of Singapore, and Tata Investment Corp. The company has fixed a price band of ₹88-93 per share. The net proceeds from the public offer will be used to fund working capital requirements, tech investments, inorganic growth through acquisitions, and other strategic initiatives.
Ixigo's journey and business model
Le Travenues Technology, known as Ixigo, is a technology company that facilitates travel planning, booking, and management for Indian travelers. The company's aim is to be the most customer-centric travel company, providing excellent service through technology, cost efficiency, and innovation. Its OTA platforms enable users to book trains, flights, buses, and hotels, as well as access travel utility features like PNR status, seat availability alerts, and delay predictions. The company was founded in 2007.
Ixigo IPO's financial allocation
Gurugram-based Ixigo's IPO is a combination of a new issue of equity shares worth ₹120 crore and an offer for sale (OFS) of 6.66 crore equity shares worth ₹620 crore by existing shareholders at the top end of the price band. The fresh issue's proceeds of ₹45 crore will be used to fund the company's working capital requirements, while ₹26 crore will be allocated for technology and data science investments.
