ixigo IPO
The initial public offering (IPO) of ‘ixigo‘ parent company Le Travenues Technology Limited launched on June 10, 2024, in the Indian primary market. Investors have until June 12, 2024, to apply for this mainboard public issue. So far, the response has been strong, with high subscription rates.
ixigo IPO Grey Market Premium (GMP) Today
Today, the grey market premium (GMP) for ixigo IPO is ₹25, which is ₹1 higher than yesterday’s GMP of ₹24. Despite some volatility in the secondary market, the grey market has remained steady, likely due to the strong investor interest in the IPO.
ixigo IPO Subscription Status
After two days of bidding, here’s the subscription status:
- Overall: 9.33 times subscribed
- Retail Portion: 18.73 times subscribed
- Non-Institutional Investors (NII): 20.14 times subscribed
- Qualified Institutional Buyers (QIB): 0.79 times subscribed
ixigo IPO Review
Analysts are recommending a “subscribe” rating for the ixigo IPO. Here’s what BP Equities and Ajcon Global Services have to say:
BP Equities
They note that ixigo’s financial performance is impressive, with Revenue/EBITDA/PAT growing at a CAGR of 92.3%/194.9%/76.2% during FY2021-23. The IPO is valued at a P/E of 163.2x based on FY2023 earnings. Despite the high valuations, the potential for sustained high earnings growth makes it a good buy.
Ajcon Global Services
Ajcon Global Services also gives it a “subscribe” rating. At the upper price band of ₹93, the issue is priced at a P/E multiple of 39.91x its post-IPO 9MFY24 annualized EPS of ₹2.33. Here are their reasons:
- Market Share: ixigo has a significant market share across various segments.\
- Monthly Active Users: It has the highest monthly active users for mobile apps among key OTAs as of September 30, 2023.
- Technology Platforms: Advanced and scalable technology platforms meet travelers’ needs.
- Business Model: Comprehensive mix of product and service offerings across trains, flights, buses, and hotels.
- Revenue per Employee: Highest among peers at ₹92 lakhs.
- Active Users and Sessions: Leading in industry metrics.
- Growth in Indian Travel Industry: Expected growth in flights (12% CAGR by FY28), buses (8% CAGR by FY28), hotels (7% CAGR by FY28), and trains (6% CAGR by FY28).
- Infrastructure Improvement: Better travel and internet infrastructure, especially in non-Tier I cities.
- Investment in Apps: Multiple apps to provide customized experiences for users.
Conclusion
Analysts see great potential in ixigo’s IPO. The company’s strong financials, market position, and advanced technology make it a compelling investment. However, as always, it’s wise to consult with certified experts before making any investment decisions.
Disclaimer
The views and recommendations above are those of individual analysts and broking companies, not of welkinnews. We advise investors to check with certified experts before making any investment decisions.
