Le Travenues Technologies, the operator behind the travel platform Ixigo, made a remarkable entry on the stock exchanges on Monday.
The shares debuted at Rs 138.1 on the National Stock Exchange (NSE), representing a 48.5% premium over the issue price of Rs 93. On the Bombay Stock Exchange (BSE), the stock listed at Rs 135, reflecting a 45.16% premium.
Before listing, Ixigo’s shares traded at a premium of Rs 30 in the unlisted market. The initial public offering (IPO) experienced overwhelming demand, being oversubscribed nearly 98.34 times, fueled by strong interest from both non-institutional and institutional investors.
The funds raised from the IPO are earmarked for various purposes, including working capital requirements, investments in technology, funding growth through acquisitions, and general corporate purposes.
Ixigo, a technology company dedicated to empowering Indian travelers, assists users in planning, booking, and managing their trips across rail, air, bus, and hotel sectors. Leveraging AI, machine learning, and data science, Ixigo offers services such as train, flight, and bus bookings, hotel reservations, PNR status checks, seat availability alerts, running status updates, personalized travel recommendations, fare alerts, and automated customer support.
With a strong brand presence, AI-driven operations, and a diversified business model, Ixigo is well-positioned in India’s rapidly growing online travel market. The company has shown significant post-pandemic recovery, with notable increases in revenue and profitability. For the nine months ending December 2023, Ixigo’s revenue from operations rose 31% year-on-year to Rs 497 crore, with net profit jumping multifold to Rs 65.7 crore.
However, analysts have cautioned about potential challenges, including high customer acquisition costs, intense industry competition, and dependency on various travel suppliers.
Axis Capital, DAM Capital, and JM Financial were the lead managers for the IPO, while Link Intime India served as the registrar.
