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Introduction
Ixigo, an online travel portal based in Gurugram, India, is gearing up for its upcoming initial public offering (IPO). The IPO price band is set at INR 88-93 per equity share.
The parent company of Ixigo, Le Travenues Technology Limited, has announced the price band for the IPO, set to open on June 10.
At the upper price band, the company aims to raise INR 740 crore. The IPO consists of a fresh issue of shares worth INR 120 crore and an offer-for-sale component of 6.67 crore shares worth INR 620 crore.
Ixigo plans to target Tier II and smaller markets in India, with a focus on railway ticketing, positioning these as strengths for its IPO.
The founders, Rajnish Kumar and Aloke Bajpai, along with key investors such as SAIF Partners India and Peak XV Partners, will be selling shares as part of the offer for sale (OFS) component.
Ixigo’s journey to an IPO has experienced fluctuations due to market conditions. Initially eyeing to raise INR 1,600 crore, the company has adjusted its IPO size in response to market developments.
About the company
Le Travenues Technology Limited was founded in 2006. It is an online travel agency that helps travellers book train, flight, and bus tickets and hotels through its OTA platforms under the brand name “ixigo.” The company provides various unique services, such as PNR status and confirmation predictions, train seat availability alerts, flight status updates, and AI-based travel planning.
The company provides real-time travel information for flights, trains, buses, and hotels. The platform allows users to book tickets through its website and apps.
Ixigo offers different OTA platforms, including the ixigo trains and the Confirmtkt app. These platforms allow users to search for and book train tickets across India and receive real-time information and post-sales support. The ixigo-flights mobile app enables users to search and book travel products, including air tickets, train tickets, buses, and hotels. The Abhibus app allows users to check bus amenities and compare booking prices and schedules.
According to data.ai, the company had the highest app usage among OTAs in September 2023, with 83 million monthly active users across its apps.
Le Travenues Technology Limited is dedicated to continuous innovation. They recently launched ixigo PLAN, an intelligent, AI-based travel planner providing detailed itineraries and real-time destination information. They also introduced a generative AI plugin for conversational interactions with ixigo PLAN to enhance the user experience.
The company also launched an additional service, ixigo Assured Flex, which allows the purchase of flexible air or rail tickets with no extra payment for cancellation or rebooking, besides the price difference for domestic flights and rail bookings at a low cost. As of December 31, 2023, the company employed 486 full-time employees and 4 consultants under consultancy agreements.
History and Earlier Fundings
Ixigo was founded by Rajnish Kumar and Aloke Bajpai, IITK alumni. 2008, the platform introduced a hotel search engine, and in 2014, it launched a train ticket booking app.
Ixigo has received strategic investments to support its growth. In August 2011, the company received a substantial USD 18.5 million investment from SAIF Partners and MakeMyTrip.
This was followed by an undisclosed investment from smartphone maker Micromax Informatics in June 2015. In March 2017, ixigo closed funding of USD 15 million in a Series B round by venture capital firm Sequoia Capital India and Fosun RZ Capital, further bolstering its financial stability.
In July 2021, the company raised USD 53 million in its pre-IPO round. GIC led the round, which included investors such as Orios Venture Partners, Trifecta Capital, and Info Edge Ventures.
In February 2021, ixigo expanded its services by acquiring Confirmtkt, a train discovery and ticketing platform. It also acquired AbhiBus, a bus ticket booking and fleet management portal, in August 2021.
IPO Details
1) The ixigo IPO will open for subscription from June 10 to June 12, 2024. The allotment is expected to be finalised by June 13, 2024, with the listing on the BSE and NSE scheduled for June 18, 2024.
ixigo IPO Timeline (Tentative Schedule)
| IPO Open Date | Monday, June 10, 2024 |
| IPO Close Date | Wednesday, June 12, 2024 |
| Basis of Allotment | Thursday, June 13, 2024 |
| Initiation of Refunds | Friday, June 14, 2024 |
| Credit of Shares to Demat | Friday, June 14, 2024 |
| Listing Date | Tuesday, June 18, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 12, 2024 |
2) The minimum lot size for application is 161 shares, requiring a minimum investment of Rs 14,973 for retail investors.
For sNII, the minimum lot size investment is 14 lots (2,254 shares), totaling Rs 2,09,622; for bNII, 67 lots (10,787 shares), amounting to Rs 10,03,191.
Lot size for different types of investors
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 161 | Rs 14,973 |
| Retail (Max) | 13 | 2093 | Rs 1,94,649 |
| S-HNI (Min) | 14 | 2,254 | Rs 2,09,622 |
| S-HNI (Max) | 66 | 10,626 | Rs 9,88,218 |
| B-HNI (Min) | 67 | 10,787 | Rs 10,03,191 |
ixigo IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the Net offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
3) Book-running lead managers
The book-running lead managers for the ixigo IPO are Axis Capital Limited, Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd), and JM Financial Limited. The registrar for the issue is Link Intime India Private Ltd.
4) Financials
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 678.71 | 585.93 | 538.47 | 185.07 |
| Revenue | 497.1 | 517.57 | 384.94 | 138.41 |
| Profit After Tax | 65.71 | 23.4 | -21.09 | 7.53 |
| Net Worth | 437.13 | 373.76 | 342.69 | 29.94 |
| Reserves and Surplus | 399.83 | 334.17 | 303.22 | -212.6 |
| Total Borrowing | 43.36 | 0.54 | 2.73 | 14.94 |
5) Objectives behind the IPO
The company intends to use the funds raised in the IPO for the following purposes:
The company plans to use the proceeds from the fresh issue of Rs 120 crore as follows:
a) Rs 45 crore will be allotted for supplying partial funding for the company’s working capital must support its day-to-day operations.
b) Rs 26 crore will be allotted for the following purposes –
i) Making investments in cloud infrastructure and advanced technology to enhance its services and operational efficiency.
ii) Allocating resources for potential acquisitions and other strategic initiatives aimed at driving inorganic growth and general corporate purposes.
6) Risks associated with ixigo IPO
It’s crucial to consider the following risks for the Ixigo IPO:
a) The offer price, market capitalisation to revenue multiple, and price-to-earnings ratios, all based on the company’s offer price, may not accurately reflect the company’s market price at the time of listing or in the future.
b) The company’s train ticketing services depend entirely on its agreement with IRCTC. Terminating this agreement could prevent the company from providing train ticketing services, significantly impacting its performance, cash flows, financial condition, and business prospects.
Frequently Asked Questions (FAQs)
1.Who are the Peer competitors to ixigo and how are they compared?
As per the Red Herring Prospectus (RHP) of ixigo, its peer competitors are – Easy Trip Planners and Yatra Online.
| Company | Total Revenue (Rs in million) | EPS (Basic) (in Rs) | Return on Net Worth (%) |
| Le Travenues Technology (Ixigo) | 5,175.70 | 0.6 | 5.7 |
| Easy Trip Planners | 4,641.90 | 0.8 | 36.2 |
| Yatra Online | 3,974.70 | 0.7 | 4.5 |
2. Where can we find the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) of ixigo?
The Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) of ixigo can be found on the ixigo’s website and on the SEBI’s website.
3. What are the other Risks associated with ixigo?
Many services rely on outside companies that pay commissions and incentives. If these are reduced or removed, the business will suffer. Some services use information from the public. False or misleading information can make customers unhappy and cause a loss of business.
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Disclaimer: Investing in the Equity market in India is subject to risks, i.e. the market keeps on fluctuating. This article is purely for educational purposes. The views expressed and data provided here are by Equitypandit’s team. Kindly do not completely depend on the information provided as the risk appetite differs from individual to individual and there are various other factors in the market to determine the factors to invest in the market.
