Travel ticket booking platform ixigo sets Rs 88-93 price band for IPO to raise Rs 740 crore

Le Travenues Technology, the parent company of Gurugram-based traveltech startup ixigo, has announced that its initial public offering (IPO) will open for subscription on June 10 and close on June 12. 

The anchor bidding will start earlier, on June 7. ixigo's online platform helps travelers plan, book, and manage trips across rail, air, buses, and hotels.

What is the price band and issue size?

The price band for ixigo's IPO has been set at Rs 88-93 per share. The IPO consists of a fresh issue of equity shares worth Rs 120 crore and an offer for sale (OFS) of 6.66 crore equity shares, valued at Rs 620 crore at the upper price band.

The total issue size will be Rs 740 crore. The minimum lot size for the IPO is 161 shares, with further bids to be made in multiples of 161.

Who are the selling shareholders?

The selling shareholders in the OFS include SAIF Partners India IV, Peak XV Partners Investments V, Micromax Informatics Ltd., Placid Holdings, Catalyst Trusteeship Ltd., Madison India Capital HC, Aloke Bajpai, and Rajnish Kumar. SAIF Partners and Peak XV are the largest shareholders, holding 23.37 percent and 15.66 percent stakes, respectively.

How will the proceeds be used?

The proceeds from the fresh issue will be allocated as follows: Rs 45 crore will be used for working capital requirements, and Rs 26 crore will be invested in technology and data science, including advancements in artificial intelligence, customer engagement, and cloud hosting. Additional funds will support acquisitions and general corporate activities.

Is ixigo profitable?

For the year ended March FY23, ixigo recorded a net profit of Rs 23.4 crore, a significant improvement from a loss of Rs 21 crore in the previous year. The company's revenue from operations increased by 32% to Rs 501.3 crore during the same period.

A major portion of Ixigo's revenue, about 93%, came from convenience fees and commissions from rail, airline, and other service reservations—this segment alone brought in Rs 467 crore, a 29% increase from the previous year.

Train ticket bookings were the highest revenue generator, contributing 61%, followed by flights and buses. The company also earned from advertising and technical support services. Notably, Ixigo's acquisition of ConfirmTkt in February 2021 has been a successful strategic move, bolstering its position in the market.

Significant growth in net profit

For the nine months ended December FY24, ixigo's net profit grew by 252.1% to Rs 65.7 crore, while revenue jumped 34.8% to Rs 491 crore. 

The company filed its preliminary IPO papers with SEBI in February and March and obtained observations from May 14-17. Axis Capital, DAM Capital Advisors, and JM Financial are the book-running lead managers for the issue.