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Ixigo (Le Travenues Technology Ltd) IPO - Details

On 12 August 2021, ixigo filed its preliminary papers with SEBI (market regulator) to fetch Rs. 1,600 crores through a public offer. As per the DRHP, the offering will comprise Rs. 850 crores as an OFS (offer for sale) and Rs. 750 crores as a fresh issue of equity shares.

In this public offering, Micromax Informatics will offload shares worth Rs. 200 crores, and Saif Partners India IV has planned to sell shares amounting to Rs. 550 crores. Besides, Rajnish Kumar and Aloke Bajpai will sell Rs. 50 crores worth of shares each.

Investment bankers such as Nomura, Kotak Mahindra Capital, Axis Capital and ICICI Securities are associated with this initial share sale. Follow the chart below for more details on this public issue:

Issue Type

Book Built

Listing at

BSE & NSE

Price Band

To be updated

Minimum Order Quantity

To be updated

Face Value

₹1

per equity share

Market Lot

To be updated

Issue Type

Book Built

Listing at

BSE & NSE

Price Band

To be updated

Minimum Order Quantity

To be updated

Face Value

₹1

per equity share

Market Lot

To be updated

Listing at NSE, BSE

Ixigo IPO Important Dates

IPO Open Date To be updated
IPO Close Date To be updated
Allotment Date To be updated
Initiation Of Refunds To be updated
Credit Of Shares To
Demat Account
To be updated
IPO Listing Date To be updated
UPI Mandate Expiry Date To be updated

View all upcoming IPOs

About Ixigo (Le Travenues Technology Ltd)

The technology company, ixigo, was launched in 2007 with an aim to assist Indian travellers in managing, booking and planning their tours across hotels, buses, air and rail. It helps travellers to make smarter decisions through data science, machine learning and artificial intelligence-based innovations on its OTA platforms (apps and websites).

With its focus on cost-efficiency, customer experience and travel utility, it has emerged as a leading travel ecosystem in India. The travel utility services and tools have been developed using crowd-sourced information and proprietary algorithms. The company is headquartered in Gurgaon, Haryana. ixigo now plans to float an initial public offering to reach new heights.

Ixigo IPO Objectives

Ixigo will use the proceeds from its initial share sale for the following purposes:

- For inorganic and organic growth initiatives.
- For corporate purposes.

Through this public issue, the company expects to enhance its brand name among potential and veteran users. Further, this initial share sale will mark a partial exit for Micromax and Elevation Capital.

Why should you invest in ixigo IPO?

Investing in the initial public offering of ixigo can be a rewarding choice due to the following aspects:

• ixigo is the biggest online travel agency (OTA) for trains. The train-based apps, such as ConfirmTkt, account for a market share of 42% with respect to rail bookings in FY 21 for IRCTC.

• Its bus-related app, namely AbhiBus, emerged as the second greatest bus ticketing OTA during FY 21, with 10% of the market share.

• The total number of app users of ixigo stood at 37.48 million on the basis of MAU (monthly active users) in March 2021. This marks the highest app usage among the OTA platforms.

• Since its inception, ixigo has raised $ 82 millions through secondary share sales and $ 58 millions from investors in the primary market. This makes it one of the least funded customer tech startups to touch the financial market.

Financial highlights

Before investing in this company, individuals must be aware of the financial profile of ixigo. The chart below depicts the same.

Financial Year Total Assets in Rs. crores Revenue from Operations in Rs. crores Profit After Tax in Rs. crores
FY 2021 181.33 135.56 7.53
FY 2020 70.13 111.60 26.61
FY 2019 60.40 40.36 57.35

How to apply for ixigo IPO?

Interested investors can apply for this public offer in any of the following ways:

UPI

With the help of a UPI ID, investors can participate in the offering of ixigo. Firstly, they will have to link the UPI IDs with their bank accounts. Then, they can link a trading platform, such as Angel One, to their UPI IDs.
Once the linking process is over, they need to choose the UPI option from the Angel One website or app to opt for the IPO of ixigo or any other company. In addition, they can easily block their subscription amount for this issue if required using their UPI apps.

Demat Account

New investors can opt to apply for the initial public offering of ixigo via Demat accounts. With the Angel One app or website, they may open their free-of-charge Demat accounts and apply for this IPO or any other public issue instantly.
Further, investors having existing accounts with the Angel One website may click here to participate in this long-awaited public issue.

ixigo IPO - Noteworthy Highlights

Here are the notable facts about the travel aggregator ixigo to guide investors:

  • ixigo allows people to book cabs, hotels, bus tickets, flight tickets and train tickets and facilitates related services. Such services include automated consumer support, instant fare alerts, personalised recommendations, destination content, deal discovery, availability and pricing alerts, train confirmation predictions and PNR status.
  • The annual downloads for the mobile applications of ixigo in FY 19, FY 20 and FY 21 stood at 43.80 million, 69.61 million and 62.83 million, respectively.
  • In August 2021, it fetched $ 53 millions through a pre-IPO round.
  • Additionally, ixigo offers assistance for emergency travel, travel for sporting events and relief aid, educational travel and medical travel.

ixigo IPO - SWOT Analysis

Strengths

  • In July 2021, ixigo was recognised as the best online travel agency on the Google Play store, based on engagement and usage.
  • The top management of this company is highly experienced and skilful, with industry-specific knowledge.
  • The technology-related expenses of ixigo lead to lesser operational costs. As a result, the operating margin is higher, and it will reduce with the economies of scale.

Weaknesses

  • A shock in the tourism sector due to lockdowns arising from the COVID-19 pandemic adversely affects the revenues and operations of ixigo.
  • The company's train ticketing services are highly dependent on its agreement with the Indian Railway Catering and Tourism Corporation (IRCTC). If the agreement falls through, it can materially affect the company.
  • If ixigo fails to maintain the technological framework of its platforms, the customers will be dissatisfied. This will significantly impact the business and finances of this company.
  • There can be a possibility of a cyber-attack on the huge volume of personal data that the company stores and uses. As such, it can hamper the goodwill of ixigo in the Indian market.

Opportunities

  • The company has changed the future of bus and rail with digitisation and plans to continue doing the same.
  • ixigo facilitates superior travel packages and satisfies consumer expectations which signifies more popularity among both existing and prospective users.
  • Its flight and train apps cater to the aspiring Tier IIII/III/II tourists as well as the evolved Tier I tourists, marking the potential for further growth in this industry.

Threats

  • Some travel suppliers can eliminate or reduce the incentive or commission payable to the company for ticket sales. This can significantly impact the operations and cash flows of ixigo.
  • At present, the competitors of this firm have extensive market shares.
  • There can be a lack of proper coordination with travel entities.

Competitive Analysis: Market Peers

Individuals can find details about the performance of the competitors of ixigo as of FY 21 in the table below :

Name of the Company Revenue in Rs. crores Gross Transaction Value in Rs. crores Monthly Downloads (expressed in lakhs) Employee Strength
EaseMyTrip 106 2,120 2 420
Yatra 120 1,470 1 2000
MakeMyTrip 1170 11,700 8 3200

ixigo IPO FAQs

What is the ticketing revenue of ixigo in FY 21?

The ticketing revenue of ixigo is Rs. 126 crores in FY 21, marking a 107% YoY jump.

What is the advertisement revenue for ixigo in FY 21?

The advertisement revenue for ixigo declined from Rs. 11 crores in FY 20 to Rs. 7 crores in FY 21. The COVID-19 outbreak has significantly affected this figure.

What about the app rating and app reviews of ixigo in FY 21?

For ixigo, the app rating is 4.6, and the number of app reviews is 18 lakh in FY 21.

Did the net sales of ixigo grow in FY 2020-21?

While the pandemic has greatly affected the hospitality and travel sector, the net sales of ixigo grew 21% for FY 2020-21.

How much did ixigo borrow in FY 21?

ixigo has total borrowings of Rs. 15 crores in FY 21, indicating a substantial reduction from Rs. 233 crores in FY 20.

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