ixigo Shares Jump 20% In Early Trading Hours On Day 2 Of Listing

Shares of Le Travenues Technology Ltd, the parent company of online travel platform ixigo, has jumped 20% to INR 194.38 in the early hours of trading on Wednesday (June 19), a day after its listing.

ixigo shares were trading at INR 186.89 at 10:25 AM, as compared to previous close at INR 161.99.

The traveltech company made a strong debut on the stock exchanges on Tuesday (June 18), opening significantly higher than the issue price.

On the NSE, ixigo shares opened at INR 138.10 per share, a 48.5% increase from the issue price of INR 93. Similarly on the BSE, the shares opened at INR 135 apiece, up 45.16% from the issue price.

The ixigo IPO, which included a fresh equity issue worth INR 120 Cr and an offer for sale (OFS) of 6.67 Cr shares, received a massive subscription of more than 98 times, driven by heavy bidding from non-institutional, institutional and retail investors.

Ahead of the IPO opening, 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.

One of the startup’s biggest value propositions in the crowded OTA market is its focus on railways and its extensive reach into Tier-2 and smaller cities. This strategic focus differentiates it from competitors like EaseMyTrip, MakeMyTrip, Yatra and Flipkart-owned Cleartrip.

The company initially filed for an IPO in 2021, aiming to raise INR 1,600 Cr. However, due to unfavorable macroeconomic conditions, ixigo postponed its public offer despite receiving approval from the market regulator SEBI.

Since then, ixigo has remained profitable. After incurring a loss in FY22, the company bounced back in FY23, reporting a profit of INR 23.3 Cr. Continuing its financial strengthening, ixigo achieved a profit of INR 65.7 Cr in the first nine months of FY24.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.