ixigo IPO: Retail Portion Subscribed Over 5X On Day 1

ixigo Shares Break 2-Day Winning Streak, Slump 10.4% Intraday

SUMMARY

As of 03:52 PM, retail investors placed bids for 4.43 Cr shares as against 79.58 Lakh shares on offer

Non-institutional investors placed bids for 2.26 Cr shares as against 1.19 Cr shares reserved for them, resulting in an oversubscription of 1.89X

ixigo IPO 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

The initial public offering (IPO) of online travel aggregator (OTA) ixigo’s parent entity Le Travenues Technology received a strong response from retail individual investors (RIIs) on the first day of its opening for bidding.

The portion reserved for RIIs was oversubscribed within the first few hours. As of 03:52 PM, retail investors placed bids for 4.43 Cr shares as against 79.58 Lakh shares on offer. This translated to a 5.58X subscription.

As per the BSE data, non-institutional investors (NIIs) placed bids for 2.26 Cr shares as against 1.19 Cr shares reserved for them, resulting in an oversubscription of 1.89X.

However, the demand from qualified institutional buyers (QIBs) remained muted and the portion reserved for them was subscribed 0.11X. QIBs placed bids for 27.41 Lakh shares as against 2.38 Cr shares reserved for them.

Ixigo IPO 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. The startup has set a price band of INR 88-93 per equity share for its public issue.

At the upper end of the price band, ixigo is expected to raise a total of INR 740 Cr. Out of this, the company has raised over INR 333 Cr from 23 anchor investors at a price of INR 93 per equity share.

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

One of the biggest value propositions of the startup in the crowded OTA market is its focus on the railways and deep penetration into Tier-2 and beyond cities, as compared to players such as EaseMyTrip, MakeMyTrip, Yatra, and Flipkart-owned Cleartrip.

ixigo posted a consolidated net profit of INR 65.7 Cr in the first nine months of FY24, up 3X from INR 23.4 Cr in the entire FY23. Operating revenue also jumped to INR 491 Cr in the first nine months of the previous fiscal from INR 501.2 Cr in FY23.