ixigo IPO: Public Issue Subscribed 9.33X On Day 2 As NII Interest Picks Up

Investor interest in online travel aggregator (OTA) ixigo’s initial public offering (IPO) rose significantly on day two as it received bids for 40.83 Cr shares against the 4.37 Cr shares on offer, resulting in an oversubscription of 9.33X.

Leading the fray were non-institutional investors (NIIs), who placed bids for 24.04 Cr shares against the 1.19 Cr shares reserved for them. This translated to an oversubscription of 20.14X. 

Meanwhile, the retail individual investors’ (RIIs) quota was oversubscribed 18.73X. Investors in the segment placed bids for 14.90 Cr shares as against the 79.58 Lakh shares reserved for them. 

As is the common trend with IPOs, interest from qualified institutional buyers (QIBs) remained muted on day two. Investors in this segment bid for 1.89 Cr shares as against the 2.38 Cr shares reserved for them, resulting in a 0.79X subscription. 

The startup is looking to raise INR 740 Cr via its IPO 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. 

A day prior to the opening of the IPO, the OTA said it bagged INR 333 Cr from 23 anchor investors, including SBI Magnum Children’s Benefit Fund, the Government of Singapore, Tata Investment Corporation Limited, and Bajaj Allianz Life Insurance Company. 

Prior to that, ixigo also closed a pre-IPO secondary sale at INR 176.2 Cr. 

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.

The startup made its first attempt at public listing in 2021. Back then, it was looking to raise INR 1,600 Cr via the public offer. However, it put its plans on hold owing to the macroeconomic conditions then.

The Delhi NCR-based startup reported an operating revenue of INR 491 Cr for the first nine months of FY24. Profit stood at 65.7 Cr during the period under review, a 3X jump from the INR 23.3 Cr profit it posted in the entire FY23.

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