The public offer of Easy Trip Planners, an online travel agency, has received bids for shares 7.20 times the issue size on March 9, the subscription data available on exchanges showed.
The retail investors remained at forefront to support the issue as their reserved portion was subscribed 32.71 times. The portion set aside for non-institutional investors saw subscription of 4.05 times and that of qualified institutional buyers saw 28 percent.
The offer has received bids for 10.85 crore equity shares against the IPO size of over 1.5 crore shares.
Also read: Easy Trip Planners IPO: 10 key things to know before subscribing the issue
Easy Trip Planners aims to raise around Rs 510 crore through its public issue, of which Rs 179 crore has been garnered from anchor investors on last Friday at a price of Rs 187 per share, the higher end of price band. It is a complete offer for sale issue by promoters.
"We believe Easy Trip Planners IPO gives investors an opportunity to invest in a digital high-growth travel business that is into travel-related end-to-end solutions services and the only profitable online travel agency (OTA) in India," said Mehta Equities which advised investors to subscribe this IPO with a long-term perspective as well as a high potential candidate to generate healthy listing gains as markets always reward a player who has high growth potential.
Also read: Here's the one factor that helped EaseMyTrip stand out among peers
"Looking at the high growing domestic & foreign tourism opportunity and supportive government initiatives like eVisa and UDAN scheme developing airports in Tier2-3 cities which will directly provide industry growth helping online business avenues where Easy Trip is well placed to tap the opportunity in the Indian online travel agency industry," the brokerage added.
Easy Trip Planners is ranked second among the key online travel agencies in India in terms of booking volume in the 9 months ended December 2020 and third among the key online travel agencies in India in terms of gross booking revenues in FY20.
Also read: Easy Trip Planners IPO opens for subscription: Should you subscribe?
On valuations parse, the brokerage feels the strength of Easy Trip Planners brand, scalable asset-light business model, high digitalization growth in online business, customer-centric approach, as well as company efficiency in maintaining sustainable profitability justifies high P/E of (annualized FY21) around 49x, P/BV at around 11.53x times and at the upper price band (Rs 187), the issue is asking for a market cap of Rs 2,032 crore.
Also, read our in-house research team's take on the Ease My Trip IPO
Craftsman Automation to launch IPO on March 15, price band fixed at Rs 1,488-1,490Laxmi Organic Industries IPO price band fixed at Rs 129-130 per share