Shares of Le Travenues Technology, the parent company of travel aggregator Ixigo, made a healthy debut on the bourses on June 18, listing at Rs 138.10 on the NSE, marking a premium of 48.5 percent over the issue price of Rs 93.
The robust debut for travel aggregator was better that market expectations as trends in the grey market had earlier indicated a debut with around 30 percent listing gains for the stock.
The travel technology company's Rs 720 crore public offer also received stellar response from investors as it was subscribed 98.34 times. Non-Institutional Investors (NIIs) led from the front and subscribed the portion set aside for them 110.5 times.
Follow our live blog for all the market action
Qualified Institutional Buyers (QIBs) followed close by, having bid for the their allotted portion 106.7 times. The portion set aside for retail investors also got subscribed 54.8 times. Such subscription numbers also made Ixigo the 10th most subscribed IPO of 2024.
The company intends to use the net proceeds from the issue to partially fund its working capital needs, invest in cloud infrastructure and technology, finance potential acquisitions and other strategic initiatives, and cover general corporate expenses.
"With the travel sector set to grow due to increasing GDP, rising incomes, and improved infrastructure, Ixigo is well-positioned to benefit. Investors are advised to hold the shares for the medium to long term", said Parth Shah, Research Analyst at StoxBox.
Shivani Nyati, Head of Wealth, Swastika Investmart believes that Le Travenues' AI-powered operations provide it with a competitive advantage. "The company caters to various travel needs, offering a strong foundation, and its impressive revenue and profit growth demonstrate a promising future. It's strong listing is a positive sign, showcasing investor belief in its long-term growth prospects within the online travel sector. The investors are advised to hold their position with a stop loss of Rs 111," Nyati added.
Also Read | Ixigo Listing: Stock expected to list at 30% premium to IPO price on June 18
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
