The initial public offering (IPO) of Easy Trip Planners has been subscribed more than 159.33 times so far on March 10, the final day of bidding. The IPO opened for subscription on March 8.
The issue has received bids for 240.27 crore equity shares against an offer size of 1.5 crore shares, the subscription data available on exchanges showed.
The reserved portion for retail investors was subscribed 70.40 times, while the portion set aside for non-institutional investors was subscribed 382.21 times. Qualified Institutional Buyers (QIBs) have put in 77.53 times more bids than the reserved portion.
The Rs 510 crore public issue is a complete offer for sale by promoters who currently hold 100 percent shareholding in the company. Promoters Nishant Pitti and Rikant Pitti are going to offload shares worth Rs 255 crore each through public issue. Post offer, they will hold 75 percent shareholding in the company.
Airline tickets form 94 percent of its total revenues and it clocked the highest CAGR growth of 47 percent in gross booking revenues from FY18-FY20 as compared to Makemytrip (MMT) and Yatra's 20 percent and -4 percent, respectively.
"EasyMyTrip's mantra for success is its unique business strategy wherein it provides its customers with an option of no-convenience fee which means that customers are not required to pay any service fee in instances where there is no alternate discount or promotion coupon availed. This strategy has paid off handsomely even during the pandemic, making them the second player in terms of booking volumes in 9MFY21," Nirali Shah, Head of Equity Research at Samco Securities said.
EaseMyTrip is ranked second amongst key online travel agencies (OTAs) in India based on booking volumes for 9MFY21, and third in terms of gross booking revenues in FY20.
"Considering the stringent lockdowns last year, EaseMyTrip was the least impacted among its peers and it has already recovered 70 percent in terms of booking volumes as of Q3 FY21 compared to MMT's 46 percent and Yatra's 44 percent. However, it faces certain risks such as the commercial lawsuit by MMT for its brand name, another round of lockdowns if COVID-19 intensifies and premium valuation of 61.5x P/E," Nirali Shah said.
"Being debt-free with a strong ROE and ROCE of over 35 percent makes EaseMy Trip a good listing gains candidate but investors must be careful given the frothy nature of markets and the risks the travel industry faces given the current situation," she advised.
Easy Trip Planners shares traded at more than 80 percent premium in the grey market. The IPO Watch data showed that it was trading at a premium of Rs 140-150 per share, pricing it at Rs 327-337 against the issue price Rs 186-187 per share.Also read: Easy Trip Planners IPO opens for subscription: Should you subscribe?