ixigo, the renowned online travel aggregator (OTA), is gearing up for its much-anticipated initial public offering (IPO), marking a significant milestone in its journey of innovation and growth. Here’s a comprehensive overview of the key details and expectations surrounding ixigo’s upcoming IPO:
IPO Timeline and Structure
The IPO of Le Travenues Technology, ixigo’s parent company, is scheduled to open on June 10 (Monday) and conclude on June 12 (Wednesday). Notably, the anchor investor bidding is set to take place on Friday, June 7. The IPO comprises a fresh issue of shares worth INR 120 crore alongside an offer for sale (OFS) component of 6.67 crore shares. Cofounders Rajnish Kumar and Aloke Bajpai, along with investors such as SAIF Partners India and Peak XV Partners, will partake in the OFS.
Allocation and Price Band
ixigo is yet to disclose the price band for the public offering. However, it has reserved 75% of the IPO for qualified institutional buyers (QIBs), with 15% earmarked for non-institutional investors (NIIs) and the remaining 10% for retail investors.
Utilization of Proceeds
According to the red herring prospectus (RHP), the proceeds from the IPO will be deployed towards strategic initiatives, including acquisitions, and for general corporate purposes. Additionally, funds will be allocated for working capital requirements and investments in technology, artificial intelligence (AI), and customer engagement.
Business Overview and Strengths
Founded in 2007, ixigo initially operated as a travel search website before transitioning into a full-fledged OTA in FY20. Its revenue streams encompass various travel services, including flights, trains, bus tickets, hotel bookings, and holiday packages. Notably, ixigo’s unique selling proposition (USP) lies in its focus on railway ticketing and penetration into Tier II and smaller markets, positioning it favorably for growth and market expansion.
Financial Performance and Market Position
In terms of financial performance, ixigo has demonstrated robust growth, reporting a consolidated net profit of INR 68 crore in the first nine months of FY24, marking a notable 3X increase from the previous fiscal year. Operating revenue also witnessed a positive trajectory, reaching INR 491 crore in the aforementioned period. With its strong financial footing and market position, ixigo is poised to capitalize on opportunities within the dynamic travel landscape.
Implications and Market Trends
ixigo’s IPO aligns with a broader trend of Indian startups entering the public markets in 2024. As new-age tech companies such as Go Digit Insurance, TBO Tek, Awfis, and TAC Security pave the way for IPOs, ixigo joins the ranks of innovators seeking to leverage public listings for growth and expansion. Moreover, with industry giants like Swiggy and Ola Electric also gearing up for public listings, the IPO landscape reflects a convergence of innovation, investor confidence, and market dynamics.
