Hey there, market enthusiasts! Parasram here, bringing you the latest buzz in the financial world. The ixigo IPO is making quite a splash and is set to hit D-Street on Monday, June 10. But before it even opens to the public, it has already raised a hefty ₹333 crore from anchor investors. The subscription window for Le Travenues Technology’s IPO will close on Wednesday, June 12, so mark your calendars!
Big Names Backing ixigo
Major players have backed ixigo’s anchor book. Heavyweights like Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation have all jumped on board. That’s a strong vote of confidence in ixigo’s prospects! On June 7, 2024, ixigo’s IPO committee, in collaboration with Axis Capital, DAM Capital Advisors, and JM Financial, finalized the allocation of a whopping 35.81 million equity shares to anchor investors at ₹93 per share. Of this, 33.75% (12.09 million shares) were allocated to four domestic mutual funds, including SBI Magnum Children’s Benefit Fund, HDFC Mutual Fund, Whiteoak Capital Flexi Cap Fund, and Motilal Oswal Large Cap Fund.
Pre-IPO Moves
Before the anchor investors jumped on board, ixigo had already locked in a cool ₹176.2 crore through pre-IPO secondary placements, hitting the upper end of the price range. This was completed just a day before the anchor book opened, setting the stage for a strong IPO launch.
What is ixigo?
For those not in the know, ixigo is a digital platform that helps Indian travelers plan, book, and manage their trips across trains, flights, buses, and hotels. Leveraging cutting-edge technologies like artificial intelligence, machine learning, and data science, ixigo aims to make travel decisions smarter and more efficient for its users.
The platform offers a suite of tools and services, including train PNR status and confirmation predictions, train seat availability alerts, train running status updates, bus running status, personalized recommendations, instant fare alerts, and automated customer support. Essentially, ixigo is your travel buddy, making your journey as smooth as possible.
IPO Details
Now, let’s dive into the nitty-gritty of the IPO. This Gurugram-based company’s IPO is a mix of a fresh issue of equity shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore shares worth ₹620 crore by existing shareholders. In total, the public offering amounts to ₹740 crore. The fresh issue aims to raise ₹45 crore to fund the company’s working capital needs.
Another ₹26 crore will be channeled into technology and data science investments, including cloud and server hosting, artificial intelligence, and customer engagement. The remaining funds will support inorganic growth through acquisitions and general business objectives.
Axis Capital, Dam Capital Advisors, and JM Financial are the book running lead managers, with Link Intime India serving as the registrar. The price band is set between ₹88 and ₹93 per share, and investors can get in the game by bidding for at least 161 shares or in multiples of that.
Allocation Breakdown
The IPO’s allocation is divided as follows:
- Qualified Institutional Buyers (QIBs): 75%
- Non-Institutional Investors: 15%
- Retail Investors: 10%
Investors can bid for a minimum of 161 shares and in multiples thereafter, making it accessible to a broad range of investors.
Financial Performance
For the nine months ending December 2023, ixigo reported a 31% year-on-year increase in revenue from operations, reaching ₹497 crore. Even more impressively, net profit surged tenfold to ₹65.7 crore. These robust figures underscore the company’s growth trajectory and market potential.
ixigo IPO GMP Today
As of today, the grey market premium (GMP) for ixigo stands at +28. This indicates that the shares are trading at a premium of ₹28 in the grey market, suggesting an expected listing price of ₹121 per share. This is a 30.11% increase over the IPO price of ₹93. The GMP is a good indicator of the market’s confidence in the IPO, reflecting investors’ willingness to pay more than the issue price.
Final Thoughts
With a solid lineup of anchor investors, a strong financial performance, and a promising market outlook, ixigo’s IPO is one to watch. The company’s innovative use of technology to enhance travel experiences positions it well in the competitive travel industry. So, if you’re considering investing, keep an eye on ixigo as it makes its debut on the stock market. Stay informed, stay cautious, and as always, feel free to reach out if you have any questions or need further insights.
