Ixigo IPO Oversubscribed by Retail Investors Within Hours of Launch

Le Travenues Technology, the parent company of online travel platform Ixigo, witnessed an overwhelming response to its initial public offering (IPO) from retail subscribers, with oversubscriptions reaching 2.22 times within hours of the launch. As of 11:42 AM on Monday, BSE data showed retail investors bidding for 17.6 million shares against the 7.9 million shares available. The non-institutional segment subscribed 0.47 times, while qualified institutional buyers (QIB) are yet to show significant activity.

The IPO consists of a fresh equity issue worth Rs 120 crore and an offer for sale (OFS) of up to 66.6 million shares. Key shareholders including Elevation Capital, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings are partially offloading their stakes through the OFS.

Prior to the IPO, Ixigo raised approximately Rs 333 crore from anchor investors. Notable investors in the anchor book include Nomura, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, Motilal Oswal Mutual Fund, the Government of Singapore, and Tata Investment Corporation. Additionally, a pre-IPO secondary placement worth around Rs 176.2 crore was completed a day before the anchor book opening. During this sale, Elevation Capital, Peak XV Partners, Micromax Informatics, and Madison India sold 18.9 million shares at Rs 93 each, attracting new investors such as Ashoka India Equity Investment Trust, Tata Mutual Fund, Bay Capital, and Steadview Capital.

Ixigo's IPO price band is set at Rs 88-93 per share, with investors able to bid for 161 shares per lot and in multiples thereafter. The IPO allocation is structured with 75% reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

Founded in 2007, Ixigo offers a range of services including train, flight, and bus ticket bookings, along with utility tools like train PNR status, confirmation predictions, and seat availability updates. The platform also provides personalized recommendations and automated customer support, and recently expanded into the hotel booking segment.

For the nine months ending December 2023, Ixigo's revenue from operations surged by 34.9% to Rs 491 crore, up from Rs 364.3 crore in the same period the previous year. Net profit also saw a significant rise to Rs 65.7 crore from Rs 18.7 crore in the corresponding period last year.

With strong retail investor interest and strategic moves to enhance its market position, Ixigo is poised for significant growth in the competitive online travel sector.