Ixigo IPO Grey Market Soars 24% – Analysts Say BUY (But Read This First!)

Ixigo IPO starts today, priced at ₹88-₹93 per share. Analysts recommend subscribing due to strong market position and growth prospects. Grey market premium suggests a strong opening with 24% jump to ₹116 per share.

CONTENTS: Ixigo IPO Grey Market Soars 24%

• Ixigo IPO: Leading Indian train booking platform
• Ixigo IPO: Dates, Price, & Use of Funds
• Ixigo IPO: Premium, Analyst Buy, Growth Potential

Ixigo IPO: Leading Indian train booking platform

Ixigo IPO Grey Market Soars 24%

The initial public offering (IPO) of Le Travenues Technology Ltd, better known by its brand name ixigo, begins today, June 10. Ixigo is a tech company that helps Indian travelers plan, book, and manage trips for rail, air, buses, and hotels. As of March 31, 2023, ixigo held the largest market share among Online Travel Agencies (OTAs) for rail bookings, accounting for around 51% of the market, making it the leading Indian train ticket distributor in the OTA rail sector.

The bidding for the Ixigo IPO begins on June 10 and ends on June 12. The IPO allotment is expected to be finalized on June 13, with the shares set to be listed on June 18.

The price band for the IPO is between ₹88 and ₹93 per share. The lot size is 161 shares, with a minimum investment requirement of ₹14,973 for retail investors. At the upper price band, the IPO size totals ₹740.10 crore, comprising a fresh issue of 1.29 crore equity shares worth ₹120 crore and an offer for sale (OFS) of 6.67 crore shares amounting to ₹620.10 crore.

Le Travenues Technology Ltd raised ₹333 crore from anchor investors last week in advance of the IPO.

The book running lead managers for the IPO are Axis Capital, Dam Capital Advisors Ltd, and JM Financial, with Link Intime India Private Ltd acting as the IPO registrar.

The company intends to use the net proceeds from the IPO for part-funding working capital requirements, investing in cloud infrastructure and technology, supporting inorganic growth through acquisitions and other strategic initiatives, and for general corporate purposes.

The grey market premium (GMP) for the Ixigo IPO today stands at ₹23 per share, according to stock market observers. This suggests that Ixigo’s equity shares are trading at ₹116 apiece in the grey market, reflecting a 24.73% premium over the issue price of ₹93 per share.

Most analysts are recommending subscribing to the Ixigo IPO due to its strong market position in the online travel segment, favorable industry conditions, and promising growth prospects. Here’s a summary of brokerage opinions:

According to domestic brokerage firm Anand Rathi, at the upper price band, Ixigo is valued at a price-to-earnings (P/E) ratio of 154x and a market-cap-to-sales ratio of 7.2x post-issue of equity shares. This compares to its peers Yatra Online (192x) and Easy Trip Planners (54.5x) based on FY23 earnings. Anand Rathi believes that Ixigo has potential for business improvement driven by industry tailwinds, brand recognition, and business scalability, which could enhance profitability. Therefore, the firm assigns a “Subscribe – long term” rating to the Ixigo IPO.