ixigo IPO: Your Chance to Invest in India’s Leading Online Travel Platform

The much-anticipated initial public offering (IPO) of Le Travenues Technology, the parent company of India’s leading online travel platform ixigo, is set to open for subscription on June 10, 2024. The ixigo IPO presents a unique opportunity for investors to be a part of the rapidly growing online travel market in India.

Also Read-How to Invest in IPO Online: IPO में निवेश कैसे करें: सरल गाइड और स्टेप्स

ixigo IPO Details.

• IPO Dates: June 10 to June 12, 2024
• Price Band: ₹88 to ₹93 per share
• Lot Size: 161 shares
• Minimum Investment: ₹14,973
• IPO Size: ₹740.10 crore

The ixigo IPO consists of a fresh issue of equity shares worth ₹120 crore and an offer for sale (OFS) of 6.66 crore equity shares by existing shareholders, including SAIF Partners, Peak XV Partners, Micromax, and the company’s founders Aloke Bajpai and Rajnish Kumar.

ixigo’s Dominance in the Online Travel Market.

Founded in 2007, ixigo has emerged as a leading player in India’s online travel industry. The company’s innovative use of artificial intelligence, machine learning, and data science has revolutionized the way Indians plan, book, and manage their travel across rail, air, buses, and hotels.

ixigo’s multi-app strategy, under the ‘House of Brands’ approach, has helped the company cater to diverse target groups through its apps like ixigo flights, ixigo trains, Confirm Tkt, and Abhibus. As of September 2023, ixigo enjoyed the highest app usage among online travel agencies (OTAs) with 83 million monthly active users across its apps.

The company’s focus on the underserved ‘next billion users’ segment has been a key driver of its success. By offering localized content and app features designed to solve the specific problems faced by travelers from Tier II and Tier III cities, ixigo has established itself as the go-to platform for this demographic.

ixigo’s Financial Performance and Growth Potential.

ixigo has demonstrated impressive financial performance in recent years. The company’s revenue grew at a CAGR of 92.3% between FY21 and FY23, reaching ₹501.25 crore in FY23. ixigo also turned profitable in FY23, reporting a net profit of ₹23.39 crore, compared to a loss of ₹21.09 crore in the previous year.

The Indian online travel market is poised for significant growth in the coming years. According to industry reports, the market is expected to grow at a CAGR of 13% from ₹2,079 billion in FY23 to ₹3,895 billion by FY28. The shift towards online booking, particularly in the rail and air travel segments, presents a massive opportunity for ixigo to further expand its market share and drive growth.

ixigo’s Competitive Advantages.

ixigo’s strong market position can be attributed to several key competitive advantages:

1. AI-powered operations: ixigo’s use of artificial intelligence and machine learning enables the company to offer personalized recommendations, instant fare alerts, and automated customer support, enhancing the user experience.
2. Established consumer travel brands: ixigo’s user-first approach has helped the company build a loyal customer base and strong brand recall.
3. Diversified business model: By offering a wide range of travel services across rail, air, buses, and hotels, ixigo has created a diversified revenue stream and significant operating leverage.
4. Experienced management team: ixigo’s founders, Aloke Bajpai and Rajnish Kumar, along with its senior management team, bring extensive experience and expertise in the travel and technology sectors.

Risks and Challenges related to ixigo.

While ixigo’s growth prospects are promising, investors should also consider the potential risks and challenges:

• Dependence on the travel industry: Any disruptions or a general decline in the travel industry could significantly impact ixigo’s business.
• Reliance on IRCTC: ixigo’s train ticketing services are dependent on its agreement with IRCTC. Any termination of this agreement could adversely affect the company’s operations.
• Intense competition: The Indian OTA industry is highly competitive, with players like MakeMyTrip, Yatra, and EaseMyTrip vying for market share.
• Working capital requirements: ixigo has significant working capital needs, which may strain its financial resources.

ixigo IPO: An Attractive Investment Opportunity.

Despite the challenges, the ixigo IPO presents an attractive investment opportunity for several reasons:

1. Strong market position: ixigo is the second-largest OTA in India by revenue and enjoys a dominant position in the rail booking segment.
2. Robust financial performance: The company has demonstrated strong revenue growth and achieved profitability in FY23.
3. Massive growth potential: The Indian online travel market is expected to grow rapidly, driven by increasing internet penetration and a shift towards online booking.
4. Experienced management team: ixigo’s founders and senior management bring a wealth of experience and expertise to navigate the company’s growth journey.

In conclusion, the ixigo IPO offers investors a chance to be a part of India’s thriving online travel industry. With its strong market position, innovative technology, and experienced management team, ixigo is well-positioned to capitalize on the immense growth potential in the sector. However, investors should carefully consider the risks and challenges before making an investment decision.

How to Apply for the ixigo IPO.

Investors interested in applying for the ixigo IPO can follow these simple steps:

1. Log in to your online trading account or visit your broker’s website.
2. Select the ixigo IPO from the list of available IPOs.
3. Enter the number of lots you wish to apply for (minimum 1 lot of 161 shares).
4. Choose the price at which you want to apply within the price band of ₹88 to ₹93 per share.
5. Confirm your application and make the payment using UPI, net banking, or other available options.

The allotment of shares will be finalized on June 13, 2024, and the ixigo stock is expected to list on the BSE and NSE on June 18, 2024.

Final Thoughts.

The ixigo IPO is a significant milestone for the company and the Indian online travel industry. As the sector continues to grow and evolve, ixigo’s innovative approach, strong brand presence, and focus on the underserved ‘next billion users’ segment position it well for long-term success. While the IPO presents an exciting investment opportunity, investors should conduct thorough research, assess their risk appetite, and seek professional advice before making any investment decisions.

C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.