ixigo Shares Rally In Second Straight Session To End Over 14% Higher On The BSE

Continuing its rally for the second consecutive trading session, shares of online travel aggregator (OTA) ixigo gained over 14% during Wednesday’s (June 19) trading session.

After getting listed at a 45.16% premium on the BSE on Tuesday, shares of ixigo rallied 20% during the intraday trading to touch the upper circuit. The stock ended its first trading session at INR 161.99.

During today’s early trading hours, the stock once again touched the upper circuit at INR 194.38 on the BSE by jumping 20%. However, it shed some of the gains to end the day’s trading 14.4% higher at INR 185.25 on the BSE.

While ixigo shares touched its upper circuit for the second consecutive day on the BSE, they couldn’t do so on the NSE today. After hitting the 20% upper circuit on the NSE on Tuesday, the stock jumped 19.2% on the exchange during the early trading hours today.

It ended the day 11.5% higher at INR 184.86 on the NSE on Wednesday.

ixigo also saw a few large bulk deals on the day of listing on the NSE. Japanese investment major Nomura Group, via two of its funds, bought 66.98 Lakh shares worth INR 106.56 Cr in the company.

It is pertinent to note that after getting listed at a 48.5% premium to its issue price on the NSE yesterday, ixigo shares are already trading almost 34% higher compared to its listing price of INR 138.1 on the exchange.

The stock is trading 37.2% higher compared to its listing price of INR 135 on the BSE.

ixigo’s market cap at the end of the second day of its listing stands at INR 7,177.01 Cr ($860 Mn) as against INR 6,275.87 Cr ($752.2 Mn) on the first day.

Riyank Arora, technical analyst at Mehta Equities, said that though there is limited data on the technical charts for the stock, ixigo looks poised for an upside move towards INR 200 and INR 225. However, the risk-reward ratio at current levels is unfavourable.

“Immediate support, as per the signals on lower time frames, is placed around INR 180. Below this, the next support is around INR 160,” Arora said. “However, on a pullback towards INR 170, we can consider buying this stock with a strict stop loss of INR 160 for potential targets of INR 200 and INR 225.”

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

On the back of its profitability factor and strong differentiation from other OTAs, ixigo IPO received a positive response from public market investors. Its public issue was oversubscribed 98.34X. 

ixigo’s major early investors Peak XV and SAIF Partners also made massive returns from the IPO. As per Inc42’s calculations, the returns made by Peak XV and SAIF Partners on the shares they sold via the OFS and pre-IPO deals stood at about 8.2X and 13X, respectively.

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