IXIGO IPO: KEY DETAILS AND INSIGHTS
Introduction
Starting from 10th June to 12th June 2024, Le Travenues Technology Limited, the company that owns ixigo – a well-liked travel booking platform is about to launch its initial public offering (IPO). This move will be very important for the company as it seeks to secure a substantial amount of money required for its future developments and strategic plans.
IPO Details
The ixigo IPO comprises of a fresh equity issue of ₹120 crore plus an offer for sale (OFS) of up to 66.67 million shares. For instance, SAIF Partners, Peak XV Partners, and Aloke Bajpai & Rajnish Kumar who are co-founders of ixigo will be disposing part of their holdings in OFS (mint) (Entrackr).
The shares have been priced between ₹88 and ₹93 per share to raise around ₹740.10 crores through this public issue (mint) (TopStockBrokerIND). Shares have been allocated in the following manner:
Qualified Institutional Buyers (QIBs): 75%
Non-Institutional Investors (NIIs): 15%
Retail Investors: 10%
Use of Proceeds
The funds raised from this public issue will be used for various purposes such as:
Part-funding working capital needs.
Investments in cloud infrastructure and technology upgrades.
Inorganic growth by way of acquisitions or other strategic initiatives.
Financial Performance
Ixigo made ₹497 crore in sales for the nine months ended December 2023, surpassing what it had generated in the previous year. During this time too, the company realized a net profit of ₹65.7 crore. Thus, this growth path confirms ixigo’s strong market position and potential for further expansion (mint) (Entrackr).
Market Position and Strategy
The company has emerged as a leading Indian online travel agency especially for the “Next Billion Users” market that includes Tier-II/Tier-III and Rural travelers. By employing refined technology such as Artificial Intelligence (AI) and Machine Learning, Ixigo improves its services while also enhancing user experience (TopStockBrokerIND).
Key Strengths
Strong Market Presence: Significant player in underserved segments.
Technological Advancements: The company is AI driven among other cutting-edge technologies.
Experienced Management: The team heading ixigo has vast industry experience and knowledge.
Diverse Revenue Streams: Offers stability and opens new avenues of growth due to their diverse business model (TopStockBrokerIND) (Entrackr).
