Ixigo Platform: A One-Stop Shop for Travel Planning
Ixigo’s user-friendly online platform empowers travelers across India to seamlessly plan, book, and manage their trips. The platform meets a variety of travel needs by providing booking alternatives for flights, trains, buses, and hotels all in one handy spot.
Price Band and Issue Size Revealed
The pricing range for ixigo’s IPO has been established at Rs 88-93 per share. The overall issue size is Rs 740 crore, which includes a fresh issue of equity shares worth Rs 120 crore and an offer for sale (OFS) of 6.66 crore equity shares. At the top of the price range, the OFS component amounts to Rs 620 crore. Investors can take part in the IPO by bidding on a minimum lot size of 161 shares, with additional bids in multiples of 161.
Selling Shareholders in the OFS
Several major investors will sell their stakes through the OFS. These include: SAIF Partners India IV, Peak XV Partners Investments V, Micromax Informatics Ltd., Placid Holdings, Catalyst Trusteeship Ltd., Madison India Capital HC, Aloke Bajpai, and Rajnish Kumar. SAIF Partners and Peak XV Partners had the largest holdings among these selling owners, with 23.37% and 15.66%, respectively. The proceeds from the new equity share issuance will be wisely deployed to support ixigo’s growth ambitions. Rs 45 crore will be used to increase working capital, while Rs 26 crore will be spent on improving the company’s technological capabilities and data science knowledge. This investment is likely to result in advances in artificial intelligence, customer interaction techniques, and cloud computing infrastructure. Furthermore, a portion of the profits will be used to fund possible acquisitions and general business objectives.
Ixigo’s Financial Performance: A Positive Trajectory
Ixigo has demonstrated a positive financial trajectory, with profitability increasing significantly over the last year. For the year ended March FY23, the company recorded a net profit of Rs 23.4 crore, a substantial improvement compared to a loss of Rs 21 crore in the previous fiscal year. Revenue from operations mirrored this positive trend, rising by 32% to Rs 501.3 crore during the same period.
Convenience Fees and Commissions
Ixigo’s primary revenue stream stems from convenience fees and commissions earned through bookings for trains, flights, and other travel-related services. This segment alone contributed a significant Rs 467 crore, representing approximately 93% of the company’s total revenue and showcasing its dominant position within this niche. Notably, this segment witnessed a 29% year-on-year growth.
Train Bookings Lead the Way
Train ticket bookings became ixigo’s most significant revenue stream, accounting for 61% of total earnings from convenience fees and commissions. Flight and bus reservations followed shortly behind. Furthermore, the company makes money from advertising and technical support services. Ixigo’s strategic acquisition of ConfirmTkt in February 2021 was a successful move, cementing its dominance in the train ticketing market.
Continued Growth Momentum
Ixigo’s positive financial performance extends beyond the previous fiscal year. For the nine months ended December FY24, the company’s net profit witnessed a remarkable 252.1% growth, reaching Rs 65.7 crore. Revenue also displayed strong growth, increasing by 34.8% to Rs 491 crore during the same period.
IPO Readiness and Regulatory Approvals
Ixigo filed its preliminary IPO documents with SEBI (Securities and Exchange Board of India) in February and March of this year. Following a review process, SEBI issued its observations between May 14th and 17th, paving the way for the upcoming IPO launch. Axis Capital, DAM Capital Advisors, and JM Financial have been appointed as the book-running lead managers for the public offering.
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