Ixigo IPO fully subscribed on strong retail demand. Check GMP and other details

The initial public offering (IPO) of Ixigo is getting a steady response from investors on the first day of the bidding process. The issue was fully subscribed within hours of opening, with retail investors driving the demand.

The retail portion of the issue was subscribed the most at 6.17 times, followed by NIIs at 2.17 times and QIB investors at 0.12 times.

About 75% of the offering is reserved for qualified institutional bidders (QIBs), while 15% is reserved for non-institutional investors and the remaining 10% for retail investors.

The IPO comprises a fresh equity sale of Rs 120 crore and an offer for sale (OFS) of up to 6.66 crore shares. Under the OFS, SAIF Partners, Peak XV Partners, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, and Placid Holdings will offload part of their stakes.

Net proceeds from the public offer are proposed to be utilised for funding working capital requirements, investments in tech, funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

Ixigo IPO review

Analysts advised investors to subscribe to the issue for the long term as the company has a scope of business improvement on the back of industry tailwinds, brand recall and business scalability, resulting in expansion of profitability.

Also Read: Ixigo IPO opens for subscription. Should you bid?

"At the upper band, the company is valued at P/E of 154x while on market-cap/sales it is valued at 7.2x post issue of equity shares, compared to its peers (Yatra Online – 192x, Easy trip planners – 54.5x) on FY23 earning basis. We recommend a subscribe to the IPO," said Anand Rathi.

Ixigo IPO price band

The company has fixed a price band of Rs 88-93 per share, where investors can bid for 161 shares in one lot and in multiples thereafter.

Ixigo IPO GMP

In the unlisted market, the company's shares are trading with a premium of Rs 25, unchanged from the previous day.

Other details

Ixigo is a technology company focused on empowering Indian travelers to plan, book and manage their trips across rail, air, buses and hotels. It assists travelers in making smarter travel decisions by leveraging artificial intelligence, machine learning and data science led innovations on its OTA platforms.

Travelers can book train, flight and bus tickets and hotels, while accessing utility tools and services including train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, bus running status, personalized recommendations, instant fare alerts and automated customer support services.

The company’s vision is to become the most customer-centric travel company, by offering the best customer experience to users.

For the nine months ended December 2023, revenue from operations increased 31% year-on-year to Rs 497 crore, while net profit jumped multifold to Rs 65.7 crore.

Axis Capital, DAM Capital and JM Financial are the book-running lead managers to the issue, while Link Intime India is the registrar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)