IPO listed on 18 Jun'24
Le Travenues Technology Ltd
Minimum Investment
₹ 14,973 / 161 shares
Grey market premium
₹ 23 (25% premium)
Issue price
₹ 93
Listing price
₹ 138
Listing gains
45 (48%)
Listing on
Jun 18, 2024
Our Verdict:
Neutral
- Amidst the booming travel sector, this IPO could serve as an effective investment in the tourism and hospitality industries. However, the valuation of the IPO offers limited comfort.
- From a valuation standpoint, attributing FY24's annualized earnings (including exceptional income) to its post-IPO equity gives a price-to-earnings (P/E) ratio of 41.15. Excluding exceptional income, the P/E ratio escalates to 75, indicating that the stock is fully priced.
- Although Ixigo has demonstrated robust revenue growth, it contends with slimmer margins and weaker return ratios compared to peers like EaseMyTrip and Yatra Online, which boast better financial health and profitability.
- Considering Ixigo’s low exposure in the higher-margin businesses of flights and hotels, long-term investors might want to consider waiting and reevaluating the stock for a more attractive entry point after its listing. However, considering the IPO’s grey market premium (GMP), investors with a risk-appetite may consider subscribing for potential listing gains.
About the company
Founded in
3 Jun'06
Managing director
Aloke Bajpai
- Le Travenues Technology Ltd (Ixigo) is a technology enterprise dedicated to enabling Indian travellers to plan, book, and manage their journeys, encompassing railways, air travel, buses, and accommodations. In FY23, it ranked as the second-largest Online Travel Agency (OTA) in India by consolidated revenue from operations.
- Ixigo supports travellers in making more informed travel choices through the use of artificial intelligence, machine learning, and data science-driven innovations across its OTA platforms, including websites and mobile apps.
STRENGTHS
- Remarkable Growth: Ixigo has experienced substantial growth, with its revenue from operations achieving a Compound Annual Growth Rate (CAGR) of 92% from FY21 to FY23. Similarly, its EBITDA has significantly increased, showing a CAGR of 171% during the same period.
- Market Leadership: As of March 31, 2023, Ixigo is the premier distributor of train tickets in India's OTA rail market, holding a dominant market share of ~51% in rail bookings among OTAs. Additionally, their bus-focused app, AbhiBus, ranks as the second-largest bus-ticketing OTA in India, capturing 11.5% of the online bus ticket bookings market in FY23, which further rose to 12.5% in H1FY24.
- High User Engagement: The Ixigo Group apps have consistently been among the highest-rated OTA apps on the Google Play Store, with a notable rating of 4.6 as of November 2023. In terms of user engagement and monthly active users, these apps have led the market, particularly in September 2023, where they topped all major OTA players and standalone transactional train mobile apps in India for monthly active users and user sessions per month.
- Brand Loyalty: The growth in monthly active users from 2.16 crore in March 2021 to 7.70 crore in December 2023 underscores their strong brand presence and customer loyalty.
RISK FACTORS
- Inconsistent Earnings: Ixigo has experienced net losses in the past (FY22) and expects increases in expenses in the future. Any loss going ahead could adversely affect its operations and financial condition.
- Dependency on IRCTC Partnership: Ixigo's train booking services are critically dependent on a non-exclusive agreement with IRCTC. Any disruption or termination of this partnership could lead to significant financial setbacks.
- Operational Inexperience: Originally a meta-search website, Ixigo has recently transitioned to operating as an Online Travel Agency (OTA). This change marks a new operational path where it has limited experience.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 740.10 crore
Fresh Issue
₹ 120 crore
OFS
₹ 620.10 crore
Price range
₹ 88 - 93
Lot size
161 shares
Issue Objective
The net proceeds from the fresh issue are intended to be utilised towards:
- Partially financing the firm’s working capital needs;
- Investing in cloud infrastructure and technology;
- Supporting inorganic growth via acquisitions and other strategic initiatives; and
- General corporate purposes.
Dates
Bidding open
10 Jun'24
Bidding close
12 Jun'24
Allotment date
13 Jun'24
Refund date
14 Jun'24
Listing
18 Jun'24
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.