OTA Raises INR 333 Cr From 23 Anchor Investors

SUMMARY

The online travel aggregator allocated 3.58 Cr shares to the anchor investors at the upper end of its IPO price band of INR 93 per equity share

SBI Mutual Fund, HDFC Mutual Fund, Government of Singapore were among the anchor investors who were allocated the shares

ixigo’s IPO, which comprises a fresh issue of shares worth INR 120 Cr and an OFS component of 6.67 Cr shares, will open on June 10

Online travel aggregator (OTA) ixigo’s parent entity Le Travenues Technology raised over INR 333 Cr from 23 anchor investors at the upper end of its initial public offering (IPO) price band of INR 93 per equity share. 

The subscription for ixigo’s public issue is set to open on Monday (June 10). Ahead of this, the startup allocated 3.58 Cr shares to the anchor investors on Friday (June 7). 

SBI Magnum Children’s Benefit Fund – Investment Plan and Nomura Funds Ireland plc – India Equity Fund were allocated 51.99 Lakh shares each worth INR 48.4 Cr. The Government of Singapore was allocated 14.79 Lakh shares worth INR 13.8 Cr.

Ixigo also allocated HDFC Mutual Fund a total of 51.99 Lakh shares worth a total of INR 48.36 Cr, while Morgan Stanley’s two funds were allocated 44.22 Lakh shares worth a total of INR 41.13 Cr.

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

Out of the total allocation of 3.58 Cr equity shares to the anchor investors, 1.21 Cr equity shares (33.75% of the total allocation) were allocated to four domestic mutual funds, which applied through seven schemes.

ixigo’s IPO comprises a fresh issue of shares worth INR 120 Cr and an offer for sale (OFS) component of 6.67 Cr shares worth INR 620 Cr. The startup has set a price band of INR 88-93 per equity share for its public issue.

At the upper end of the price band, ixigo is expected to raise a total of INR 740 Cr. 

As part of the OFS, cofounders Rajnish Kumar and Aloke Bajpai are selling 1.19 Cr shares each. Investors SAIF Partners India (Elevation Capital) and Peak XV Partners are selling 1.94 Cr and 1.3 Cr shares, respectively. Micromax Informatics, Placid Holdings and Madison India are among the other investors selling portions of their stakes via the OFS. 

Founded by Bajpai and Kumar, ixigo started in 2007 as a travel search website to help users compare flight deals. In FY20, it became an OTA and started earning revenue from selling various travel services like flights, trains, bus tickets, hotel bookings and holiday packages.

One of the biggest value propositions of the startup in the crowded OTA market is its focus on the railways and deep penetration into Tier-2 and beyond cities.

ixigo posted a consolidated net profit of INR 65.7 Cr in the first nine months of FY24, up 3X from INR 23.4 Cr in the entire FY23. Operating revenue also jumped to INR 491 Cr in the first nine months of the previous fiscal from INR 501.2 Cr in FY23. 

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