ixigo IPO day 3: Latest GMP, subscription status to review. Apply or not?

ixigo IPO day 3: The initial public offering (IPO) of ‘ixigo’ parent Le Travenues Technology Limited hit the Indian primary market on June 10 2024. ixigo IPO will remain open until June 12, 2024, so investors have just one day to apply for this mainboard public issue. After the first two days of bidding, the ixigo IPO subscription status signals a strong response from investors. According to stock market observers, the grey market has remained steady on the ixigo IPO despite a range-bound session in the secondary market. They said that shares of ‘ixigo’ brand parent Le Travenues Technology Limited are available at a premium of 25 in the grey market today.

ixigo IPO GMP today

As mentioned above, the ixigo IPO GMP (grey market premium) today is 25, which is Re 1 higher than Tuesday’s GMP of 24, say market observers. They noted that grey market sentiments have remained steady on the ixigo IPO despite choppy sessions in the secondary market. They said the strong ixigo IPO subscription status could be the reason for the steady grey market mood.

ixigo IPO subscription status

After two days of bidding, the book build issue was booked 9.33 times, the retail portion 18.73 times, the NII segment 20.14 times, and the QIB portion 0.79 times.

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Infographic: Courtesy mintgenie

ixigo IPO review

Giving a ‘subscribe’ tag to ixigo IPO, BP Equities said, “Considering the financial performance, the company’s Revenue/EBITDA/PAT grew at a CAGR of 92.3%/194.9%/76.2% during the FY2021-23 period. The issue is valued at a P/E of 163.2x on the upper price band based on FY2023 earnings. Though the valuations are rich, the nature of the platform business (high pass-through of revenues) and large industry opportunity size would be the key factors to drive sustained and high earnings growth in future. We, therefore, recommend a “Subscribe” rating for the issue.”

Ajcon Global Services has also given the public issue a ‘subscribe’ tag, saying, “At the upper price band of 93, the issue is priced at a P/E multiple of 39.91x its post-IPO 9MFY24 annualized EPS of 2.33 and at a multiple of 169.09x its post-IPO FY23 EPS of Rs. 0.55. We give a “SUBSCRIBE” rating to the issue.”

Ajcon Global Services listed the following reasons for giving a ‘subscribe’ tag to the public issue:

1] Significant market share across various segments.

2] Leading OTA for the ‘following billion users’ with the highest Monthly Active Users for mobile apps across all key OTAs as of September 30, 2023.

3] Developed advanced and scalable technology platforms, allowing them to address the requirements and problems of travellers.

4] The business model comprises a comprehensive mix of product and service offerings with presence across trains, flights, buses, and hotel businesses. This comprehensively addresses the online travel market in India, allowing the company to monetize all aspects of its OTA platforms.

5] Highest revenue per employee at Rs. 92 lakhs, which is best among its peers.

6] Industry-leading monthly active users and monthly average session per user.

7] The Indian travel industry’s market size is expected to increase across all categories, with the highest growth rate expected in flights, which is expected to grow at a CAGR of 12% by FY28, followed by buses, which will grow at a CAGR of 8% by FY28, Hotels, which will grow at a CAGR of 7% by FY28, and trains, which will grow at a CAGR of 6% by FY28.

8] The overall improvement of travel and internet infrastructure in India, and the Tier I to Tier II segment being the growth driver of the Indian travel industry, the company expects deeper penetration in non-Tier I cities, which will drive the growth of train, flight, bus and hotel bookings.

9] Investment in multiple apps to provide a more focused and customized experience for every user’s dominant use case.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 12 Jun 2024, 09:13 AM IST

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