The initial public offering (IPO) of Ixigo (Le Travenues Technology) garnered interest from investors on the first day of bidding as it saw an overall subscription of nearly twice the shares it offered.
It saw an overall subscription of 1.95 times on its opening day on Monday.
The retail individual investors’ segment was subscribed 6.17 times, while the non-institutional investors’ category saw a subscription rate of 2.78 times. The portion allocated for qualified institutional buyers (QIBs) received a 12% subscription.
The Rs 740-crore IPO attracted bids for 8,51,54,349 shares, much higher than the 4,37,69,494 shares available, as per data from the NSE.
The IPO has a price range of Rs 88 to Rs 93 per share and will close for subscription on June 12, 2024.
Should you subscribe?
Swastika Investmart Ltd in its report said that Le Travenues Technology Ltd, the parent company of popular online travel agencies Ixigo and AbhiBus operates in the rapidly growing Indian online travel market.
“Its established brand presence, AI-powered operations, and diversified business model position the company for continued growth,” it said.
Swastika Investmart further said that while Le Travenues has demonstrated strong post-pandemic recovery with impressive top-line and bottom-line growth, some key risks require careful consideration.
“The IPO valuation of 160.34x P/E appears relatively high. Despite this, considering the long-term growth potential of the online travel sector and the company’s established brands, we recommend an ‘Apply’ rating for long-term investors,” advised the brokerage firm.
Brokerage firm Master Capital Services Limited in its report said that Ixigo has completed 3 acquisitions in the last 3 years and integrated the companies with their platform.
“The company has been capturing market share since 2020 and wants to continue on this trajectory. The IPO is priced at a premium to its listed peers, given the industry tailwinds and a long growth runway, we advise to subscribe to the IPO for listing gains,” said the brokerage firm.
Ixigo IPO latest GMP
The latest Grey Market Premium (GMP) for the Ixigo IPO, as of June 10, 2024, is Rs 28.
With a price band of Rs 93, the estimated listing price for the Ixigo IPO is Rs 121, inclusive of today’s GMP and the cap price.
This suggests an anticipated percentage gain/loss per share of around 30.11%.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
