Ixigo IPO: 23 Anchor Investors Raise INR 333 Cr With OTA

OVERVIEW

The online travel aggregator gave the anchor investors 3.58 Cr shares at the top of its initial public offering (IPO) pricing range of INR 93 per equity share.

The Government of Singapore, SBI Mutual Fund, and HDFC Mutual Fund were some of the anchor investors who received shares.

The ixigo IPO is scheduled to open on June 10 and will consist of an OFS component worth 6.67 Cr shares and a fresh issue of shares totaling INR 120 Cr.

The parent company of online travel aggregator (OTA) ixigo, Le Travenues Technologies, raised more than INR 333 Cr from 23 anchor investors at the upper end of its INR 93 per equity share initial public offering (IPO) pricing range.

On Monday, June 10, the public issue subscription for ixigo is scheduled to open. The startup gave the anchor investors 3.58 Cr shares on Friday, June 7, in advance of this.

51.99 Lakh shares, each valued INR 48.4 Cr, were allotted to the SBI Magnum Children’s Benefit Fund – Investment Plan and the Nomura Funds Ireland Ltd – India Equity Fund. 13.8 Cr worth of shares, or 14.79 lakh shares, were given to the Singaporean government.

Additionally, Ixigo allotted 51.99 lakh shares to HDFC Mutual Fund, valued at INR 48.36 Cr, and 44.22 lakh shares, valued at INR 41.13 Cr, to Morgan Stanley’s two funds.

The other anchor investors included Bay Capital India Fund, Whiteoak Capital, Motilal Oswal, Tata Investment Corporation Limited, and Bajaj Allianz Life Insurance Company Ltd.

Four domestic mutual funds that applied through seven schemes received 1.21 Cr equity shares, or 33.75% of the overall allocation of 3.58 Cr equity shares that were given to the anchor investors.

 before this. Among the purchasers of the shares were Ashoka India Equity Investment Trust PLC, Tata Multi Asset Opportunities Fund, Bay Capital Holdings Ltd, and Steadview Capital Mauritius Ltd.

The ixigo IPO consists of an offer for sale (OFS) component of 6.67 Cr shares worth INR 620 Cr and a new issue of shares for INR 120 Cr. For its initial public offering, the business has chosen a price range of INR 88-93 per equity share.

Ixigo is predicted to raise a total of INR 740 Cr at the upper end of the price range.

Cofounders Rajnish Kumar and Aloke Bajpai are each selling 1.19 Cr shares as part of the OFS. Shares worth 1.94 crore and 1.3 crore, respectively, are being sold by investors SAIF Partners India (Elevation Capital) and Peak XV Partners. Madison India, Placid Holdings, and Micromax Informatics are a few of the other investors that are offloading some of their holdings through the OFS.

Ixigo was first established in 2007 as a travel search tool to assist consumers in comparing airline prices by Bajpai and Kumar. It converted to an OTA in FY20 and began making money by offering a range of travel-related services, including hotel reservations, airline, rail, and bus tickets, as well as vacation packages.

The startup’s concentration on trains and extensive reach into Tier-2 and beyond cities represent one of its strongest value propositions in the congested OTA market.

In the first nine months of FY24, ixigo reported a consolidated net profit of INR 65.7 Cr, up 3X from INR 23.4 Cr for the full FY23. Additionally, operating revenue increased from INR 501.2 Cr in FY23 to INR 491 Cr in the first nine months of the preceding fiscal year.