Indigo's Bhatias, Capital International kick off sale process for travel tech firm ITQ

ITQ offers inventory options to travel agents thereby facilitating effective travel booking and agency management. (Representative Image)

The Bhatia family of Indigo parent InterGlobe Enterprises and top global investment firm Capital International have kick-started the process to sell their stake in leading travel reservation and technology solutions player InterGlobe Technology Quotient (ITQ), multiple industry sources in the know told Moneycontrol.

"The sale process for ITQ has been launched and the Bhatia family and Capital International, the key shareholders, are evaluating an exit. A 100 percent stake is up for grabs," said one of the persons cited above.

A second person told Moneycontrol that investment banks Nomura and Citi had been appointed for the proposed sale process. "Both strategic and private equity funds are likely to be tapped," he said.

"Capital International needs an exit as it has been invested for more than 5 years. ITQ is a good, cash-generating asset, "a third person added.

According to reports, in September 2017, Capital International picked up around a 40 percent stake in ITQ for $200 mn from the erstwhile private equity investors, valuing the entire firm at $500 mn. The remaining stake is held by the Bhatia family.

All the three persons above spoke to Moneycontrol on the condition of anonymity.

In response to a query from Moneycontrol, a spokesperson for InterGlobe Enterprises said, "No comments. We don't respond to market speculation."

Queries sent to Nomura, Citi and Capital International were left unanswered at the time of publishing this article.

A CLOSER LOOK AT ITQ

Founded in 2005, ITQ, led by President and CEO Anil Parashar, offers inventory options to travel agents thereby facilitating effective travel booking and agency management. According to its website, it is the sole distributor of Travelport in India, Sri Lanka, Maldives and Bhutan.

The firm is connected to nearly 22,000+ agency terminals, serves over 13,000 customers, including travel management companies, online travel agencies and retail agencies, in almost 600+ cities while providing assistance through a 24X7 helpdesk.

"Its portfolio of services – advanced ticket generation, e-ticket application, provision of real-time flight information, issuance of insurance policies, automation of the accounting process and analysis of business trends – is specifically designed to enhance the productivity of travel businesses everywhere, " the website adds.