ixigo IPO or Le Travenues Technology Limited IPO: Price, Lot Size, Strengths and Risks

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Ixigo IPO or Le Travenues Technology Limited (ixigo) is a popular player in the Indian travel industry. With various apps like ixigo Trains, ixigo Flights, Confirmtkt, and Abhibus, the company caters to all the travel-related requirements of tourists, from transport to stay.

With over 83 million active users each month, the ixigo apps are highly sought after by travellers in India. To further improve its cloud infrastructure and boost growth, the company plans to raise ₹740.10 crores via IPO. The bids for the ixigo IPO will begin on June 10, 2024, and close on June 12, 2024, with a price band of ₹88 to ₹93 per share.

Let's explore further details of Le Travenues Technology Limited (ixigo) IPO to make a well-informed decision.

IPO Details

Here’s an overview of the Le Travenues Technology Limited (ixigo) IPO:

IPO Launch Date

June 10, 2024 to June 12, 2024

Issue Type

Book Built IPO

To be Listed at

BSE, NSE

Price Band

₹88 to ₹93 per share

Face Value

₹1 per share

Minimum Lot Size

161 Shares

Fresh Issue Size

12,903,226 shares

OFS Size

66,677,674 shares

Total Issue Size

79,580,900 shares

Shareholding Pre-Issue

374,519,945

Shareholding Post-Issue

387,423,171

About the Company

Le Travenues Technology Limited, popularly known as ixigo, is a popular online travel agency (OTA) incorporated in June 2006. It is headquartered in Gurugram. ixigo is a technology-driven platform that empowers travellers to plan, book, and manage their trips across various modes of transport including rail, air, buses, and hotels.

Today, with a wide network serving over 83 million active monthly users across their platforms, ixigo is a leading player in the Indian travel industry. However, the company’s journey began with the launch of their flights metasearch website. Over the years, they expanded their services, introducing a hotel search engine in 2008, and launching the train ticket booking app in 2014.

ixigo made strategic acquisitions along the way, including the train discovery and ticketing platform Confirmtkt in February 2021, and the bus ticket booking and fleet management portal AbhiBus in August 2021.

Looking at the financials, ixigo’s revenue surged to ₹517.57 crores in FY23, up by 34.46% compared to FY22. The profit after tax (PAT) turned around from a loss of ₹21.09 crore in FY22 to a profit of ₹23.40 crore in FY23, rising by a whopping 210.91%.

Additional Read: How to Invest in an IPO Online

IPO Timeline

Open Date

Monday, June 10, 2024

Close Date

Wednesday, June 12, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on June 12, 2024

Basis of Allotment Date

Thursday, June 13, 2024

Initiation of Refunds Date

Friday, June 14, 2024

Date of Credit of Shares to Demat

Friday, June 14, 2024

Listing Date

Tuesday, June 18, 2024

IPO Lot Sizes

Investors can bid for the ixigo IPO starting with a minimum of 161 shares and in multiples of 161 thereafter. The table below shows the minimum and maximum investments for retail investors and HNIs in shares and value.

Application

Lots

Shares

Amount

Retail (Minimum)

1

161

₹14,973

Retail (Maximum)

13

2,093

₹1,94,649

S-HNI (Minimum)

14

2,254

₹2,09,622

S-HNI (Maximum)

66

10,626

₹9,88,218

B-HNI (Minimum)

67

10,787

₹10,03,191

Company Financials

Analyse the financial summary of Le Travenues Technology Limited (ixigo) to decide whether to invest in its IPO or not.

Amount in ₹ Crore

Period Ended

31 Dec 2023

31 Mar 2023

31 Mar 2022

31 Mar 2021

Assets

678.71

585.93

538.47

185.07

Revenue

497.10

517.57

384.94

138.41

Profit After Tax (PAT)

65.71

23.40

-21.09

7.53

Net Worth

437.13

373.76

342.69

29.94

Reserves & Surplus

399.83

334.17

303.22

-212.60

Total Borrowing

43.36

0.54

2.73

14.94

Strengths of the Company

Le Travenues Technology Limited (ixigo) distinguishes itself from its competitors through several key strengths. Let’s check them out.

  • Market Leadership and Share: ixigo is a leading OTA in India, especially dominant in the rail and bus ticketing segments with significant market shares of 52.4% and 12.5% respectively for the first half of Fiscal 2024.
  • Focus on 'Next Billion Users': The company's targeted approach towards Tier II, Tier III, and rural areas in India helps capture a substantial and growing market segment.
  • High User Engagement: ixigo has high user engagement with 83 million active monthly users and 4.9 million monthly app downloads as of September 2023, reflecting strong customer loyalty and growth potential.
  • Significant Revenue Growth: The company has shown impressive revenue growth with a CAGR of 92.29% between Fiscal 2021 and Fiscal 2023.
  • Future Growth Potential: The expected increase in travel demand from Tier I and non-Tier I cities, along with growing internet penetration, offers substantial growth opportunities.

Risks Involved

Understanding potential risks is crucial before investing in a business. Here are the key risks associated with ixigo:

  • Profitability Concerns: Despite recent profitability, past fiscal year losses (FY22) and reliance on exceptional income for significant profit in recent quarters could raise concerns about consistent profitability.
  • High Competition: Faces intense competition from other established OTAs and emerging travel tech platforms.
  • Regulatory Risks: Any changes in government regulations regarding travel bookings, especially train ticketing, could adversely affect business operations.
  • Fully Priced IPO: The IPO is priced at a high P/E ratio, suggesting that it may be fully valued, leaving limited room for price appreciation in the short term.

Summing Up

Before investing in the Le Travenues Technology Limited (ixigo) IPO, it is essential to review the company’s red herring prospectus thoroughly. This will help you evaluate whether ixigo's plans for its net proceeds align with your investment goals.

Stay tuned to our platform for detailed insights on how to invest in the ixigo IPO, which opens on June 10, 2024. Additionally, consider opening a demat and trading account with us to begin your investment journey seamlessly.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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