Le Travenues Technology, better known as ixigo, debuted on the Indian stock exchanges in June 2024. The online travel platform’s IPO garnered interest for its growth potential in the booming travel sector.
The issue size of ₹740.10 crore consisted of a fresh issue to raise capital and an Offer for Sale (OFS) by existing investors. Priced between ₹88 and ₹93 per share, the IPO received mixed reviews. As of June 12, 2024 (Day 3), Ixigo IPO was subscribed 98.10 times. The public issue saw a subscription rate of 53.95 times in the retail category, 106.73 times in the QIB category, and 110.25 times in the NII category.
Travel and tourism are two of the largest industries in India, contributing about US$199.6 billion to the country’s GDP. The travel market in India is expected to touch US$125 billion by FY27 from an estimated US$75 billion in FY20. Le Travenues Technology, being an online travel agency (OTA), attracted investor interest and made a strong market debut.
On June 18, Le Travenues Technology was listed at ₹138.10 on the NSE, which is 48.5% above its issue price of ₹93. The company’s stock settled at ₹135 per share on the BSE, representing an impressive 45.16% premium over the final issue price of ₹93 per share.
In a span of over a month (June 18, 2024 – July 29, 2024), the stock price increased by ~31.4% from the listing price. The stock touched its all-time high at ₹197.50 on June 19, 2024 and all-time low at ₹135.00 on June 18, 2024.
As of July 29, 2024, the market capitalisation of Le Travenues Technology on the NSE stands at ₹7,060.79 crore. The share price of the company opened at ₹181.45.
As per the offer document, the company has shown Easy Trip Planners and Yatra Online as their listed peers. As of July 29, 2024, the PE ratio of Easy Trip Planners is 73.01, and Yatra Online is -460.14. However, they are not truly comparable on an apple-to-apple basis.
The company’s revenue from operations increased by 30.8% YoY in FY24, reaching ₹655.9 crore, up from ₹501.3 crore in FY23. For Q4 FY24, Revenue from Operations grew by 20.4% YoY to ₹164.9 crore. Le Travenues Technology Ltd’s Profit After Tax (PAT) surged by 212.3% YoY in FY24 and 55.2% YoY in Q4 FY24. The FY24 PAT was ₹73.1 crore.
In June 2024, ixigo teamed up with PhonePe to provide flight and bus bookings directly on the PhonePe app. This partnership will allow over 54 crore PhonePe users to access a broader range of travel booking and utility services, including flights, trains, and buses. According to the company, this collaboration will be especially advantageous for travellers from Tier 2 and Tier 3 cities, combining ixigo’s travel solutions with PhonePe’s expanding presence in smaller towns and its fintech expertise.
Le Travenues Technology’s long-term success depends on capitalising well on the booming travel and tourism market. The company can solidify its position in the sector by tapping into emerging market trends and optimising its offerings.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jul 29, 2024, 6:20 PM IST
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