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Anand Rathi Report
Le Travenues Technology Ltd. (Ixigo) will launch its initial public offering on June 10 and the offer will close for subscription on June 12. The leading Online Travel Agency has fixed a price band in the range of Rs 88 to Rs 93 per share. The minimum order lot is 161.
The Rs 740.1 crore IPO comprises of a fresh issue of 1.29 crore shares totaling Rs 120 crore and an offer for sale of 6.67 crore shares amounting to Rs 620.1 crore.
Objects of the Issue
Fresh issue:
1,200 million Part-funding working capital requirements of the company. Investments in cloud infrastructure and technology.
Funding inorganic growth through unidentified acquisitions and other strategic initiatives.
General corporate purposes
Valuation and outlook
Ixigo is an OTA platform which is focused on empowering Indian travellers to plan, book and manage their trips across rail, air, buses and hotels. It is the second largest OTA in India in terms of consolidated revenue from operations in Fiscal 2023.
The company’s vision is to become the most customer-centric travel company, by offering the best customer experience to users. At an upper band, company is valued at P/E of 154 times while on market-cap/sales it is valued at 7.2 times post issue of equity shares, compared to its peers (Yatra Online – 192 times, Easy trip planners – 54.5 times) on FY23 earning basis.
Therefore, we believe that Ixigo has a scope of business improvement on the back of industry tailwinds, brand recall and business scalability, resulting in expansion of profitability. Thus, we recommend an “Subscribe – long term” rating to the IPO.
Click on the attachment to read the full IPO report:
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