ixigo IPO to open on June 10; here's what GMP indicates ahead of public issue

Le Travenues Technology Ltd, which owns the travel booking website ixigo, is scheduled to open on Monday, June 10 for subscription, and will conclude on Wednesday, June 12. ixigo IPO announced on Friday that it had raised ₹333 crore from anchor investors ahead of its debut share offer for public subscription.

Overall, the company offered 3.58 crore equity shares to 23 funds at ₹93 apiece, for a total of ₹333 crore, it said. ixigo IPO price band has been set in the range of ₹88 to ₹93 per share.

ixigo is a technological firm that enables Indian travellers to plan, schedule, and manage their journeys by train, air, buses, and hotels. ixigo is the premier Online Travel Agency (OTA) for the 'next billion customers', with an emphasis on localised content and app features that address the needs of tier II/ tier III travellers. They help travellers make smarter travel decisions by employing artificial intelligence, machine learning, and data science-driven technologies on its OTA platforms, which include websites and mobile applications.

Also Read: ixigo IPO: Gurgaon-based company garners ₹333 crore via anchor book ahead of public issue

ixigo said on Friday that its existing shareholders had completed the sale of equity worth little more than ₹176 crore in a pre-IPO deal.

Ashoka India Equity Investment Trust Plc, Tata Multi Asset Opportunities Fund, Tata Digital India Fund, Bay Capital Holdings, and Steadview Capital Mauritius, as well as ixigo co-founders Aloke Bajpai and Rajnish Kumar, purchased shares, according to a PTI report.

The firm allotted 75% of the issue size to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 10% for retail investors. Investors can bid on a minimum of 161 shares and multiples thereof.

Also Read: Ixigo IPO to open on June 10; here are 10 key things to know from RHP before subscribing to the ₹740-crore issue

View Full Image ixigo IPO details.

Let's check what the ixigo IPO GMP today signals ahead of the issue opening.

ixigo IPO GMP today or grey market premium is +25. This indicates ixigo share price were trading at a premium of ₹25 in the grey market, according to investorgain.com.

Given the top end of the IPO price band and the existing premium in the grey market, the ixigo IPO estimated listing price is ₹118 per share, which is 26.88% more than the IPO price of ₹93.

Based on the previous four sessions of grey market activity, today's IPO GMP is going upward and anticipates a solid listing. The lowest GMP is ₹0, while the highest GMP is ₹28, according to investorgain.com analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Ixigo IPO: Price band set at ₹88-93 per share; check issue details here

ixigo IPO details

The Gurugram-based ixigo IPO is a combination of a new issue of equity shares worth ₹120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares worth ₹620 crore by existing shareholders at the top end of the price band. This equates to a public offering of ₹740 crore.

The fresh issue's proceeds of ₹45 crore will be used to fund the company's working capital requirements, while ₹26 crore will be used for investments in technology and data science, such as cloud and server hosting, artificial intelligence and customer engagement. In addition, funds will be utilised to support inorganic expansion through acquisitions as well as general business objectives.

The book running lead managers for the ixigo IPO are Axis Capital Limited, Dam Capital Advisors Ltd (formerly Idfc Securities Ltd), and JM Financial Limited, with Link Intime India Private Ltd serving as the registrar.

For the nine months ending December 2023, revenue from operations climbed 31% year on year to ₹497 crore, while net profit increased tenfold to ₹65.7 crore.

Also Read: Ixigo IPO: From launch date to size - here's all you need to know about the upcoming issue

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

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