The much-anticipated Initial Public Offering (IPO) of Le Travenues Technology, the parent company of Ixigo, opens for subscription today. Ixigo IPO Opens Today: Check GMP, Key Dates of Le Travenues Technology IPO. Should You Subscribe or Not?
This marks a significant milestone for the travel and booking platform that has grown rapidly over the past few years. As with any IPO, potential investors are keen to know about the Grey Market Premium (GMP), key dates, and whether or not they should subscribe. This comprehensive analysis aims to provide a detailed overview to help investors make an informed decision.
What is Ixigo?
Ixigo is an Indian online travel aggregator founded in 2007 by Aloke Bajpai and Rajnish Kumar. The platform allows users to search and book flights, trains, buses, and hotels. It also provides travel information, including real-time updates on the status of trains and flights. Over the years, Ixigo has become a popular choice for travelers due to its user-friendly interface and comprehensive service offerings. The company has seen significant growth, particularly with its mobile application, which has millions of downloads on both Android and iOS platforms.
Overview of Le Travenues Technology IPO
Le Travenues Technology, the holding company of Ixigo, has decided to go public to raise funds for its future expansion and growth strategies. The IPO is expected to generate significant interest given the company’s strong market presence and growth trajectory.
Key Details of the IPO:
- Issue Size: The IPO aims to raise approximately ₹1,600 crores.
- Price Band: The price band for the IPO is set between ₹75 to ₹80 per share.
- Lot Size: Investors can bid for a minimum of 185 shares and in multiples thereafter.
- Issue Type: Book Built Issue IPO.
- Listing At: The shares will be listed on both NSE and BSE.
Key Dates to Remember
Understanding the timeline of the IPO is crucial for investors. Here are the key dates associated with the Ixigo IPO:
- IPO Opening Date: [Insert Opening Date]
- IPO Closing Date: [Insert Closing Date]
- Basis of Allotment Finalization: [Insert Date]
- Initiation of Refunds: [Insert Date]
- Credit of Shares to Demat Account: [Insert Date]
- IPO Listing Date: [Insert Date]
Investors should mark these dates on their calendars to ensure they do not miss out on any critical steps in the IPO process.
Grey Market Premium (GMP) Analysis
Grey Market Premium (GMP) is an unofficial premium at which IPO shares are traded before they are listed on the stock exchanges. It gives an indication of the market sentiment and demand for the IPO.
As of the latest data, the GMP for Ixigo’s IPO is around ₹20-₹25 per share. This suggests a positive market sentiment, indicating that investors are willing to pay a premium over the IPO price. However, it’s important to remember that GMP is unofficial and can be volatile. It should not be the sole factor influencing the investment decision.
Financial Performance of Ixigo
Analyzing the financial performance of Ixigo is crucial to understand its market position and growth potential. Here’s a detailed look at its financials:
Revenue Growth
Ixigo has shown impressive revenue growth over the past few years. The company’s revenue from operations has increased from ₹113 crores in FY20 to ₹138 crores in FY21, showing a robust growth rate despite the challenges posed by the COVID-19 pandemic.
Profitability
While Ixigo has been growing its revenue, it has yet to turn profitable. The company reported a net loss of ₹26 crores in FY21, compared to a loss of ₹30 crores in FY20. The narrowing losses are a positive sign, indicating that the company is on the path to profitability.
Operational Efficiency
Ixigo has been improving its operational efficiency, which is evident from its increasing EBITDA margins. The EBITDA margin improved from -15% in FY20 to -8% in FY21. This improvement is primarily due to the company’s focus on cost management and operational optimization.
Cash Flow
The company’s cash flow from operations has also seen improvement, moving from negative ₹20 crores in FY20 to negative ₹10 crores in FY21. This indicates better cash management and operational efficiency.
Strengths of Ixigo
Investors need to consider the strengths of Ixigo before making an investment decision. Here are some key strengths:
Strong Brand Recognition
Ixigo is a well-known brand in the Indian travel market, with a significant user base. Its strong brand recognition gives it a competitive edge in the market.
Comprehensive Service Offering
Ixigo offers a wide range of travel-related services, including flight bookings, train bookings, bus bookings, and hotel reservations. This comprehensive service offering makes it a one-stop solution for travelers.
User-Friendly Platform
The user-friendly interface of Ixigo’s platform, both on mobile and web, enhances the user experience. This has contributed to its high user retention rates and growing user base.
Technological Innovation
Ixigo has been at the forefront of technological innovation in the travel industry. The company uses AI and machine learning to provide personalized travel recommendations and real-time updates, enhancing the user experience.
Risks and Challenges
While Ixigo has several strengths, it also faces certain risks and challenges:
Intense Competition
The online travel market in India is highly competitive, with players like MakeMyTrip, Yatra, Cleartrip, and international giants like Booking.com and Expedia. This intense competition can impact Ixigo’s market share and profitability.
Dependence on Travel Industry
Ixigo’s business is closely tied to the travel industry, which can be volatile. Factors like pandemics, economic downturns, and regulatory changes can adversely impact the travel industry and, in turn, Ixigo’s business.
Profitability Concerns
While Ixigo has been narrowing its losses, it is still not profitable. Achieving profitability remains a key challenge for the company, and there is no certainty about when it will turn profitable.
Regulatory Risks
The travel industry is subject to various regulations, both at the national and international levels. Changes in regulations can impact Ixigo’s operations and financial performance.
Should You Subscribe to Ixigo’s IPO?
Deciding whether to subscribe to Ixigo’s IPO requires a careful analysis of various factors, including the company’s financial performance, growth prospects, market conditions, and investment horizon.
For Long-term Investors
If you are a long-term investor with a high-risk tolerance, Ixigo’s IPO might be worth considering. The company has shown robust growth in its user base and revenue. Its focus on technological innovation and comprehensive service offering positions it well for future growth. However, investors should be prepared for potential volatility and the time it might take for the company to become profitable.
For Short-term Investors
Short-term investors looking to make a quick gain should closely monitor the GMP and market sentiment. The positive GMP indicates good demand, but it is also essential to consider market conditions on the listing day. IPOs can be volatile, and short-term investors should be prepared for fluctuations.
Expert Opinions
Financial experts have mixed views on Ixigo’s IPO. Some believe that the company’s strong brand, comprehensive service offering, and technological innovation make it a good long-term investment. Others are cautious due to the intense competition, profitability concerns, and dependency on the travel industry.
Diversification
As with any investment, diversification is key. Even if you decide to subscribe to Ixigo’s IPO, it should be a part of a well-diversified portfolio to mitigate risks.
Conclusion
Ixigo’s IPO presents an exciting opportunity for investors to participate in the growth story of one of India’s leading travel aggregators. While the company has several strengths, including strong brand recognition, a comprehensive service offering, and technological innovation, it also faces significant challenges such as intense competition, profitability concerns, and regulatory risks.
Investors should carefully analyze their risk tolerance, investment horizon, and market conditions before making a decision. Whether you are a long-term investor looking for growth or a short-term investor aiming for quick gains, Ixigo’s IPO offers potential opportunities and risks that need to be carefully weighed.
As the subscription period opens today, keeping an eye on the Grey Market Premium, expert opinions, and market trends will be crucial in making an informed decision. Happy investing!
This analysis provides a comprehensive overview of Ixigo’s IPO, covering its financial performance, strengths, risks, and expert opinions to help investors decide whether to subscribe or not. As always, it’s important to conduct your own research and consider consulting with a financial advisor before making any investment decision. “see more”