ixigo IPO sees decent subscription on Day 1; retail, HNIs lead

Le Travenues Technology is the country's leading online travel aggregator, which helps travellers plan, book and manage their trips across rail, air, buses and hotels.

The initial public offering (IPO) of online travel booking company Le Travenues Technology Ltd, popularly known by its brand ixigo, opened for subscription on June 10. The IPO received decent subscription on the first day of bidding, with all investors participating in the issue.

The Rs 740-crore IPO has been subscribed 1.38 times with investors buying 6.02 crore equity shares against the offer size of 4.37 crore shares, the subscription data showed.

Retail investors were the leaders among them, bidding 4.78 times the allotted quota, followed by Non-institutional investors (NIIs)/HNIs who have bought 1.71 times the reserved portion.

The portion set aside for qualified institutional buyers (QIBs) was booked 0.11 times. The IPO with a share price range of Rs 88-93 will conclude on June 12.

The IPO lot size is 161 shares and the minimum investment amount required by retail investors is Rs 14,973. The IPO is a combination of fresh issue of 1.29 crore equity shares aggregating to Rs 120 crore and an offer for sale (OFS) component of 6.67 crore share aggregating to Rs 620.10 crore.

Both founders, Alok Bajpai, who serves as Chairman, Managing Director, and Group CEO of ixigo, and Rajnish Kumar, Director & Group Co-CEO, are expected to see substantial returns from the IPO.

With the issue price set at Rs 93 per share, the market value of Alok Bajpai's 3.08 crore shares is projected to rise from Rs 2.65 crore to Rs 286 crore. The average acquisition price per share was Rs 0.86.

Meanwhile, Rajnish Kumar holds 3.22 crore shares, acquired at an average price of Rs 0.37 per share. At the upper end of the price band, the market value of his shares will reach Rs 299.22 crore. ixigo already raised Rs 333 crore from anchor investors last week ahead of its IPO opening.

ixigo is a technology company focused on allowing Indian travellers to plan, book and manage their trips across rail, air, buses and hotels.

Also Read | Ahead of IPO, ixigo's parent firm garners Rs 333 cr from anchor investors

It proposes to utilize the net issue proceeds towards part-funding working capital requirements, investments in cloud infrastructure and technology and funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.