Le Travenues Technology, the business behind the renowned travel booking tool Ixigo, will undertake its initial public offering (IPO) on June 10, 2024. This article provides a thorough description of the Ixigo IPO, including significant data, aspects to consider before investing, and a general company profile.
IPO Details
- IPO Dates: June 10th, 2024 – June 12th, 2024
- Price Band: ₹88 – ₹93 per share
- Issue Size: ₹740.10 crore
- Fresh Issue: ₹120 crore
- Offer for Sale (OFS): ₹620.10 crore
- Lot Size: 161 shares
- Minimum Investment: ₹14,973
- Listing Date: Tentatively June 18th, 2024 (on both BSE and NSE)
- Registrar: Link Intime India Private Ltd
- Book Running Lead Managers: Axis Capital Limited, Dam Capital Advisors Ltd (formerly Idfc Securities Ltd), Jm Financial Limited
- Grey Market Premium (GMP): ₹23 (as per investorgain.com)
Company Profile
Ixigo is India’s top online travel agency (OTA), targeting the “next billion customers” with customized content and app features geared to the demands of tier II and tier III travelers. The startup employs artificial intelligence (AI), machine learning (ML), and data science to help Indian passengers plan, book, and manage their trips using a variety of forms of transportation such as trains, airlines, buses, and hotels.
Factors to Consider Before Investing
Here are 10 important factors to consider before subscribing to the Ixigo IPO:
- Market Opportunity: The Indian online travel market is witnessing significant growth, driven by increasing internet penetration, rising disposable incomes, and a growing appetite for travel among the middle class. Ixigo’s focus on tier II and tier III cities positions it to tap into this expanding market segment.
- Financial Performance: While Ixigo’s financial statements are publicly available in the red herring prospectus (RHP), it’s crucial to analyze the company’s revenue growth, profitability margins, and debt levels to understand its financial health and future prospects.
- Competition: The Indian online travel market is fiercely competitive, with established players like MakeMyTrip and Goibibo holding a significant market share. Investors should assess Ixigo’s competitive advantage and its ability to differentiate itself in the market.
- Management Team: The experience and track record of the management team is a crucial factor for any IPO. Evaluate the expertise of Ixigo’s leadership team in the travel technology sector and their ability to navigate the competitive landscape.
- Use of Proceeds: Understanding how the company plans to utilize the funds raised through the IPO can provide insights into its future growth strategies. Whether the funds will be used for product development, marketing expansion, or debt repayment will influence the company’s future trajectory.
- Valuation: Analyze the IPO price band in comparison to Ixigo’s financials and industry benchmarks. This will help determine if the company is fairly valued or potentially overvalued.
- Risks: Consider the potential risks associated with the investment, such as economic downturns that could dampen travel demand, technological disruptions in the travel industry, and regulatory changes.
- Investment Horizon: IPO investments are often considered long-term bets. Investors should have a clear investment horizon in mind and be prepared to hold the stock for several years to ride out market fluctuations.
- Diversification: Ixigo’s IPO should be considered as part of a well-diversified investment portfolio. Investors should not allocate a significant portion of their portfolio to a single IPO.
- Professional Advice: Consulting with a qualified financial advisor can be beneficial, especially for first-time IPO investors. A financial advisor can provide personalized investment recommendations based on your risk tolerance and financial goals.
The Ixigo IPO presents an opportunity for investors to participate in the growth of India’s leading online travel platform for the value-conscious traveler segment. By carefully considering the factors outlined above, investors can make informed decisions about whether or not to subscribe to the Ixigo IPO.
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