Ixigo IPO Debuts With 30% Premium; Trades Higher Post Listing
Ixigo stocks trade at Rs 149 with 56 per cent gain in the morning session on the NSE
Ixigo, an online travel agency (OTA), kicked-off its bourses’ journey with a nearly 50 per cent premium in the Tuesday trading session.
Ixigo stocks listed at Rs 138.10 with 30 per cent premium on the National Stock Exchange (NSE) against its issue price of Rs 93 per share.
Besides, the stocks traded at Rs 149 with 56 per cent gain in the morning session on the NSE.
Ixigo attempted to raise over Rs 740 crore from the public market through its initial public offering (IPO) received nearly 100 times subscription, whereas the retail segment was filled nearly 54 times. Besides, the issue successfully raised Rs 333 crore during the anchor round.
The IPO consisted of fresh issue worth Rs 120 crore and an offer-for-sale (OFS) component of Rs 620.10 crore with a price band of Rs 88 to Rs 93 per share.
Axis Capital, Dam Capital Advisors and JM Financial were the book running lead managers, while Link Intime India was the registrar to the issue.
Analyst Note
“The increasing air traffic among the Tier 2 and 3 cities, the introduction of new railway routes, better and upgraded experience of train travel, and the government’s increased focus on improving the road infrastructure across the country along with the increasing consumption trends of the people is set to benefit the company in the medium to long term phase,” said Parth Shah, Research Analyst, Stoxbox.
However due to stretched valuations, we advise the market participants to book profits as of now and track the company for the next two quarters to understand the financial performance of the company and take decisions thereafter, added Shah.
“The stock witnessed strong buying post-listing and touched a new peak of Rs 165. We recommend that investors book profits at this stage,” said Amit Goel, Co-founder and Chief Global Strategist, Pace 360.
India's tourism industry is expected to grow further, potentially reaching a growth rate of 22 per cent by FY30. Therefore, Ixigo shares may appreciate further in the long term.
IPO Objectives
Company intends to utilise the net proceeds of Rs 120 crore for the part-funding working capital requirements of the company and investments in cloud infrastructure and technology.
Additionally, the proceeds will also be used towards funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 517 crore in FY23, compared to Rs 384 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 23.40 crore in FY23 compared to the loss of Rs 21.09 crore in FY22.
Overall, revenue and PAT increased by 34 per cent and 210 per cent respectively.
