Morgan Stanley-backed Ixigo's IPO opens for subscription: Should you invest?
The initial public offering (IPO) of Le Travenues Technology, the parent company of the popular travel platform Ixigo, has opened for subscription today. The IPO will close on June 12. The company has already secured approximately ₹333 crore from anchor investors, including Nomura, Morgan Stanley, 3P India Equity Fund, HDFC MF, Motilal Oswal MF, Government of Singapore, and Tata Investment Corp.
Ixigo IPO details and use of funds
The IPO consists of a fresh equity sale of ₹120 crore and an offer for sale (OFS) of up to 6.66 crore shares. Under the OFS, existing shareholders such as SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will sell part of their stakes. 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 market valuation and analyst recommendations
Analysts have recommended long-term subscription to the IPO, citing potential business growth due to industry tailwinds, brand recall, and business scalability. At the upper band, the company is valued at P/E of 154x while on market-cap/sales it is valued at 7.2x post issue of equity shares, compared to its peers (Yatra Online - 192x, Easytrip planners - 54.5x) on FY23 earning basis. The company has fixed a price band of ₹88-93 per share.
Ixigo's role in empowering Indian travelers
Ixigo is a technology company that empowers Indian travelers to plan, book, and manage their trips across rail, air, buses, and hotels. It helps travelers make informed travel decisions by using artificial intelligence, machine learning, and data science-led innovations on its OTA platforms. The company's vision is to become the most customer-centric travel company by offering the best customer experience to users. For the nine months ended December 2023, revenue from operations increased 31% year-on-year to ₹497 crore.
Ixigo IPO allocation and listing details
About 75% of the offering is reserved for qualified institutional bidders (QIBs), while 15% is reserved for non-institutional investors and the remaining 10% for retail investors. Retail investors must invest a minimum of ₹14,973, which corresponds to a minimum lot size of 161 shares. The allotment process is expected to be completed by Thursday. Following this, Ixigo is expected to be listed on both the BSE and NSE on June 18.
