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Ixigo Gets SEBI’s Nod for Rs. 1,600 Cr IPO

27 January 20234 mins read by Angel One
Ixigo Gets SEBI’s Nod for Rs. 1,600 Cr IPO
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Le Travenues Technology Ltd., which is Ixigo’s parent company, received approval from SEBI regarding its initial public offering. The market regulator has already issued an observation letter favouring the company, allowing it to carry on with its Rs. 1,600 crores public offer.

As per sources, Ixigo’s listing in the bourses is likely to happen between January and February 2022.

Read on to find out more about this topic.

An Overview of Ixigo IPO

From the issue size of Rs. 1,600 crores, the company plans to generate Rs. 750 crores through fresh issuance. In addition, the IPO will also consist of an offer for sale aggregating to Rs. 850 crores.

Moving further, co-founders of Ixigo, Rajnish Kumar and Aloke Bajpai, will be selling shares worth Rs. 50 crores each concerning secondary share sale.

Other shareholders, like Elevation Capital, will sell shares worth Rs. 550 crores and seek a partial exit from Ixigo. At the same time, Micromax Informatics will divest Rs. 200 crores worth of equity shares.

Here is a rundown of Le Travenues Technology Ltd. shareholding pattern:

  • Elevation Capital is the biggest shareholder in Ixigo, with a stake of 24%.
  • SCI Investments owns a stake of 16.02%, and Gamnat has a 9.89% stake.
  • The company’s co-founders, namely Kumar and Bajpai, own 8.79% and 9.18% stake, respectively.

In its draft red herring prospectus, Ixigo said that it would use the proceeds for the following purposes:

  • Organic and inorganic growth drive
  • General corporate purposes

Besides, Ixigo plans to utilize less than 25% of proceeds from the fresh issuance for general corporate purposes.

Know About the Company

Ixigo is a digital company focused on helping Indian travelers manage, plan, and book their travel through buses, trains, flights, and hotels.

The company deploys Artificial Intelligence and Machine Learning in their OTA platforms, including their mobile application and website.

Assisting customers in making the best travel decisions, Ixigo aims to become a customer-centric travel firm by providing quality services.

A Quick Glance into the Company’s Financials

As far as Ixigo’s financials are concerned, this travel booking company reported EPS (earnings per share) at Rs. 98.14 on an entirely diluted basis. In addition, its cash burn for operational activities in FY2021 stood at Rs. 15 crores as compared to the Rs. 35 crores cash generation in FY2020.

Here is a tabular representation of Ixigo’s financial trends:

Total Assets (in Crores) Total Revenue (in Crores) Profit After Tax (in Crores)
March 2019 Rs. 60.38 Rs. 42.65 Rs. (57.35)
March 2020 Rs. 70.13 Rs. 112.96 Rs. (26.61)
March 2021 Rs 181.34 Rs. Rs. 138.41 Rs. 2.71

Bottom Line

With SEBI’s nod, Ixigo is all set to join the list of new-age companies planning to go public in the coming year. The firm’s unique approach to travel utility is backed by technology, cost-efficiency, and innovations, making it one of India’s leading travel ecosystems.

Frequently Asked Questions

  1. What is Ixigo’s market share in the flight booking market?

In FY2021, Ixigo acquired a 12% market share in the flight booking market.

  1. Who are the lead managers of Ixigo IPO?

Entities like ICICI Securities, Kotak Investment Banking, Axis Capital, and Nomura Financial Advisory are the book running managers of this IPO.

  1. When was Ixigo founded?

Ixigo was founded in 2007.

 Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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