ixigo IPO: Issue Closes With 98.34X Oversubscription

The public issue of online travel aggregator (OTA) ixigo closed today (June 12) with an overwhelming investor interest. Investors placed bids for 430.40 Cr shares against the 4.37 Cr on offer, resulting in an oversubscription of 98.34X. 

Interest from Qualified Institutional Buyers (QIBs) picked up on the final day of bidding, with investors in the segment placing bids for 254.81 Cr shares as against the 2.38 Cr shares reserved for them. This resulted in an oversubscription of 106.73X.

Non Institutional Investors (NIIs) maintained high optimism for ixigo’s IPO since day one. NIIs oversubscribed their quota by 110.53, placing bids for 131.94 Cr shares against the 1.19 Cr shares reserved for them. Within the segment, NIIs whose bid amount exceeded INR 10 Lakh showed the most interest in the public issue, oversubscribing their quota by 117.40x. 

Meanwhile, the Retail Individual Investors’ (RIIs) quota was oversubscribed 54.85X on the final day of bidding. Investors in the segment placed bids for 43.64 Cr shares as against the 79.58 Lakh shares reserved for them. 

With the close of its IPO, ixigo is also set to make its debut on the public markets. Through its IPO, it will be raising INR 740 Cr at the upper end of its price band of INR 88-93. The public offer comprises a fresh issue of shares worth INR 120 Cr and an offer for sale (OFS) component of 6.67 Cr shares worth up to INR 620 Cr. 

Prior to its run at the bourses, the company raised INR 333 Cr from 23 anchor investors, including the likes of SBI Magnum Children’s Benefit Fund, the Government of Singapore, Tata Investment Corporation Limited, and Bajaj Allianz Life Insurance Company. 

Founded by Aloke Bajpai and Rajnish Kumar, ixigo started in 2007 as a travel search website to help users compare flight deals. In FY20, it became an OTA and started selling various travel services like flights, trains, bus tickets, hotel bookings and holiday packages.

Its listing dreams have actualised three years after it made its first attempt. Back in 2021, the company had filed for an IPO to raise INR 1,600 Cr. Despite getting the go-ahead from the market regulator SEBI, it postponed the public offer citing macroeconomic conditions. 

Since then, the startup has been able to maintain profitability. After slipping into the red in FY22, the company regained profitability in FY23 reporting a profit of INR 23.3 Cr in the fiscal. It has managed to boost this number since, logging in a profit of INR 65.7 Cr for the first nine months of FY24. 

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