Shares of Le Travenues Technology, owners of travel aggregator ixigo, will be listed at the bourses on Tuesday. the company has fixed the IPO priced at ₹93, at the upper end of the price band (₹88-₹93).
The IPO saw a blockbuster response from all categories of investors. It was subscribed 98.34 times. Institutional investors subscribed 106.73 times, non-institutional investors 110.53 times and retail investors 54.85 times.
The IPO comprised a fresh issue of ₹120 crore and an offer for sale of up to 66.68 million shares worth ₹620 crore. The total issue size was ₹740 crore.
Key sellers under the OFS included SAIF Partners India IV Ltd, Peak XV Partners Investments V, Micromax Informatics Ltd, Placid Holdings, Catalyst Trusteeship Ltd, Madison India Capital HC, Aloke Bajpai and Rajnish Kumar.
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Ahead of the IPO, ixigo raised ₹333.04 crore from anchor investors by allotting 35.8 million shares at ₹93 each. Among them included Government of Singapore, Morgan Stanley, WhiteOak Capital, Bay Capital India Find, Tata Investment Corporation, Bajaj Allianz Life Insurance Company, SBI Mutual Fund and HDFC Mutual Fund.
Proceeds from the IPO will be utilised primarily for various purposes, including for funding working capital requirements, investment in cloud infrastructure and technology, and potential inorganic growth through acquisitions.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, “Le Travenues Technology is poised for a decent stock market debut with a current grey market premium (GMP) of ₹29.5, translating to a significant 32 per cent above the issue price. This excitement aligns with the overwhelming investor response – a whopping 98 times subscription.
Le Travenues thrives in India’s rapidly growing online travel market. Its established brand presence (ixigo, AbhiBus), AI-powered operations, and diversified business model position it for continued growth. Additionally, the company has demonstrated a strong post-pandemic recovery with impressive revenue and profit gains.
“However, investors should be mindful of certain risks. High customer acquisition costs, fierce competition within the industry, and dependence on a variety of travel suppliers pose potential challenges. While the IPO valuation appears on the higher side, the company’s strong brands and long-term growth potential in the online travel sector suggest a decent listing,” he added.
Axis Capital Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), and JM Financial Limited acted the book running lead managers for the IPO, while Link Intime India Private Ltd was the registrar.